General Characteristics

Section 17 corporations are tribal in character, they must be wholly-owned by the tribe and are essentially alter egos of the tribal government. They share the same privileges and immunities as the tribal government. The corporate charters may convey the following powers to the incorporated entity:

• Power to buy and sell real and personal property; including the power to purchase restricted Indian lands

• To enter into leases or mortgages of tribal land for a term of 25 years without Section 81 approval by the Secretary of the Interior60

• To enter into contracts or agreements without Section 81 approval by the Secretary of the Interior61 • Further powers "as may be necessary to the conduct of corporate business."

A federal corporate charter often permits the corporation to establish and manage subsidiary corporations. Tribes have operated construction, manufacturing, gaming, and government contracting companies through Section 17 corporations. Section 17 incorporation provides a separation of the business entity from the tribal government body. A Section 17 corporation holds assets or property separately from the tribal governing body. Land and assets used by corporation are specifically conveyed or set aside for the corporation. A Section 17 corporation will typically have separate bank accounts, separate directors, and separate assets. Although the enterprise is wholly owned by the tribe, the tribal council is typically not involved in day-to-day management decisions either directly or indirectly.