Assignments by Regional Corporations of Rights to Receive Payments from Fund
Text
28. Assignments by Regional Corporations of Rights to Receive Payments from Fund
(a)Recognition by Secretary; scope of recognition
Notwithstanding the provision of section 3727 of title 31, the Secretary is authorized to recognize validly executed assignments made by Regional Corporations of their rights to receive payments from the Alaska Native Fund. Such assignments shall only be recognized to the extent that the Regional Corporation involved is not required to distribute funds pursuant to subsection (j) or (m) of section 1606 of this title.
(b)Nonrecognition by Secretary
The Secretary shall not recognize any assignment under this section which does not provide that the United States reserves the right to assert against the assignee and successors of the assignee, any setoff or counterclaim which the United States has against the assignor Corporation.
(c)Claims against Secretary by stockholders of Regional or Village Corporation for recognition of assignment
No stockholder of any Regional or Village Corporation shall have any claim against the Secretary or the United States as the result of any assignment duly recognized by the Secretary pursuant to this section.
Analysis
Summary
Under this provision, the Secretary is authorized to recognize the valid assignments made by Regional Corporations to receive payments from the Alaska Native Fund. However, recognition is only granted if the Regional Corporation is not obligated to distribute funds according to certain sections of the law. The Secretary will not recognize any assignment that does not include the United States' right to assert any setoff or counterclaim it has against the assignor Corporation. Additionally, stockholders of Regional or Village Corporations cannot make any claims against the Secretary or the United States regarding the recognition of assignments.
Keywords
