[Code of Federal Regulations]
[Title 25, Volume 1]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 25CFR87.10]

[Page 275]
 
                            TITLE 25--INDIANS
 
     CHAPTER I--BUREAU OF INDIAN AFFAIRS, DEPARTMENT OF THE INTERIOR
 
PART 87--USE OR DISTRIBUTION OF INDIAN JUDGMENT FUNDS--Table of Contents
 
Sec. 87.10  Per capita payment aspects of plans and protection of funds accruing to minors, legal incompetents and deceased beneficiaries.

    (a) The per capita shares of living competent adults shall be paid 
directly to them. The shares of minors, legal incompetents and deceased 
individual beneficiaries, enhanced by investment earnings, shall be held 
in individual Indian money (IIM) accounts unless otherwise provided as 
set out in this section. While held in IIM accounts, said shares shall 
be invested pursuant to 25 U.S.C. 162a and shall be the property of the 
minors or legal incompetents or the estates of the deceased individual 
beneficiaries to whom the per capita payments were made.
    (b)(1) Unless otherwise provided in paragraph (b)(2) of this 
section, minors' per capita shares, until the minors attain the age of 
18 years, shall be retained in individually segregated IIM accounts and 
handled as provided in Sec. 115.4 of this chapter. Should it be 
determined that the funds are to be invested pursuant to a trust, minors 
who will have reached the age of 18 years within six months after the 
establishment of the trust shall have their funds retained at interest 
in IIM accounts and paid to them upon attaining their majority.
    (2) A private trust for the minors' per capita shares may be 
established subject to the approval of the tribal governing body and the 
Secretary on the following conditions:
    (i) The tribal governing body specifically requests the 
establishment of such trust, and the trust provides for segregated 
amounts to each individual minor, based on his per capita share, and
    (ii) The trust agreement specifically provides that the investment 
policy to be followed is that of preserving the trust corpus and of 
obtaining the highest interest rates current money markets can safely 
provide. The trust agreement must further provide that maturity dates of 
investments cannot exceed the period of the trust and that only the 
following types of investment shall be made: United States Treasury 
obligations; Federal agency obligations; repurchase/resell agreements; 
United States Treasury bills; Bankers' acceptance, provided the assets 
of the issuing bank exceed $1 billion or the issuing bank pledges full 
collateral; Certificates of deposit, provided the assets of the issuing 
bank exceed $1 billion or the issuing bank pledges full collateral; 
Commercial paper, provided it is rated prime-2 by Moody or A-2 by 
Standard and Poor or is obligation of a company with outstanding 
unsecured debt rated Aa by Standard and Poor.
    (c) The per capita shares of legal incompetents shall be held in IIM 
accounts and administered pursuant to the provisions of Sec. 115.5 of 
this chapter.
    (d) The shares of deceased individual beneficiaries, plus all 
interest and investment income accruing thereto, shall be paid to their 
heirs and legatees upon their determination as provided in 43 CFR part 
4, subpart D.
    (e) All per capita shares, including all interest and investment 
income accruing thereto, while they are held in trust under the 
provisions of this section, shall be exempt from Federal and State 
income taxes and shall not be considered as income or resources when 
determining the extent of eligibility for assistance under the Social 
Security Act, as amended.
    (f) All per capita shares or portions thereof, including all 
interest and investment income accruing thereto, which are not paid out 
but which remain unclaimed with the Federal Government shall be 
maintained separately and be enhanced by investment, and shall, unless 
otherwise provided in an effective plan or in enabling legislation, be 
subject to the provisions of the Act of September 22, 1961, 75 Stat. 
584. No per capita share or portion thereof shall be transferred to the 
U.S. Treasury as ``Monies Belonging to Individuals Whose Whereabouts are 
Unknown.''

[41 FR 48735, Nov. 5, 1976. Redesignated at 47 FR 13327, Mar. 30, 1982]