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Redding Rancheria Ordinances

Last amended: 2001

Resolution 98A, 98B, 98C


Distribution Ordinance 1999

ORDINANCE NO. 5-27-99


ORDINANCE OF THE GENERAL COUNCIL OF THE REDDING RANCHERIA AMENDING AND RESTATING ARTICLE 2 OF CHAPTER 1 OF DIVISION 2 OF THE REDDING RANCHERIA TRIBAL CODE, ENTITLED: "USE OF GAMING REVENUES."

The General Council of the Redding Rancheria (sometimes referred to as the "Tribe") hereby amends Article 2 of Chapter 1 of Division 2 of the Redding Rancheria Tribal Code to read as follows:

DIVISION 2 - BUSINESS

CHAPTER 1 - GAMING

ARTICLE 1 - REGULATION OF CLASS II GAMING

ARTICLE 2 - USE OF GAMING REVENUES


Section 1000 - Findings and Statement of Purpose

  1. The Redding Rancheria operates a gaming facility which produces revenues which are subject to the control of the Tribal Council;

  2. Under Division 2, Chapter 2, Article 1 of this Code and 25 U.S.C. §2710(b)(2))(B), the Tribal Council may use these funds:

    1. To provide per capita payments to Redding Rancheria members;

    2. To fund Rancheria government operations or programs;

    3. To provide for the general welfare of the Redding Rancheria and its members;

    4. To promote Redding Rancheria economic development;

    5. To donate to charitable organizations.

  3. Under the Indian Gaming Regulatory Act ("IGRA"), the Tribal Council may use net revenues from Class II gaming activities to make per capita payments to tribal members, if

    1. the Tribe has prepared a plan to allocate revenues to uses authorized under subsection 2 of this Section;

    2. the plan is approved by the Secretary of Interior;

    3. the interests of minors and other legally incompetent persons are adequately protected and preserved and the per capita payments are disbursed to the parents or legal guardian of such minors or legal incompetents in such amounts as may be necessary for the health, education or welfare of the minor or other legally incompetent person; and

    4. the per capita payments are subject to Federal taxation and tribal members are notified of their tax liability when payments are made.

  4. The purpose of this Ordinance and this Article is to provide a plan for the use of gaming revenues and the rules respecting the distribution of said funds for various purposes.

  5. The General Council finds that the general welfare of tribal members is best served, if 60% of the tribe's share of the net revenues of the gaming enterprise are provided in the form of per capita benefits to tribal members and 40% of the revenues are used for tribal programs that benefit the members collectively.

  6. The General Council has determined that it is in the best interests of each minor tribal member in years prior to the year such member reaches the age of fourteen to set aside funds for future payment of deferred per capita benefits to such member in four annual installments beginning in the year that the member reaches the age of twenty-one, pursuant to a plan set forth in Resolution No. 8-31-98C (the "Plan") Pursuant to the Plan, amounts shall be set aside each month for each such tribal member. The amount of funds to be set aside each month shall be determined as set forth in paragraph H of Section 1001 hereof. The Tribal Council, in its discretion, may contribute the amounts set aside to a "rabbi" trust containing the mandatory provisions contained in the model grantor trust set forth in Rev. Proc. 92- 64, 1992-2 C.B. 422-429, adopted by the Internal Revenue Service, which provisions are set forth in Resolution No. 8-31-98A (the "Rabbi Trust") . All deferred per capita benefits paid pursuant to the Plan shall be paid out of the general funds of the Tribe. Although a Rabbi Trust may be used as a vehicle for segregation and investment of funds for future payment of benefits under the Plan, the participants in the Plan shall not have any secured or preferred interest by way of a trust, escrow, lien or otherwise in any specific asset of the Tribe for payment of unpaid benefits under the Plan. The participants shall have an enforceable contract right for payment of the amounts payable to them under the terms of the Plan. It is the intent of the General Council that benefits payable under the Plan shall be includible in the gross income of the participant for federal income tax purpose's no earlier than the year(s), and only to the extent, that the participant is entitled to distributions from the Tribe pursuant to the Plan.

  7. The General Council further has determined that it is in the best interests of each minor tribal member (1) in the years prior to reaching the age of 14 as to an amount not to exceed the portion of said minor's per capita benefit excludable from his or her parents' income pursuant to Section 1 and other applicable sections of the Internal Revenue Code ("Excluded Amount") and (2) in the year such member reaches the age of fourteen and in subsequent years, and that it is in the best interests of each adult tribal member who has been declared incompetent by a court of competent jurisdiction, to contribute per capita benefits for such member to a custodial trust to be invested, with income earned on trust principal to be accumulated in the trust (the "Custodial Trusts") , for future distribution to such member when the member reaches the age of 21 if such member is a minor or otherwise as provided in Resolution No. 8-31-98B. The terms of each Custodial Trust are set forth in Resolution No. 8-31-98B. It is the intent of the General Council that contributions to and earnings of each Custodial Trust shall be includible in the gross income of the beneficiary for federal income tax purposes in the year(s) of the contributions and earnings , respectively.

  8. The Tribal Council may seek a private letter ruling from the Internal Revenue Service regarding the tax treatment of the benefits set aside under the Plan and contributed to the Custodial Trusts. The Custodial Trusts shall be irrevocable; provided, however, that the Tribal Council may revoke or modify any trust if necessary and appropriate in order to obtain a favorable private letter ruling, within ninety days after any unfavorable private letter ruling is issued with respect to such trusts, or within ninety days after the private letter ruling request with respect to such trusts is withdrawn by the Tribal Council.


Section 1001 - Definitions

  1. "Budget Ballot Committee" means a three member committee consisting of tribal members appointed by the Tribal Council to conduct an election of the budget as provided in Section -
    1003.4.A(3)

  2. "Custodial Trusts" means the trusts described in paragraph 7 of Section 1000 hereof, the terms of which are set forth in Resolution No. 8-31-98B.

  3. "Minor" means a tribal member under the age of 18 whose date of birth and certified copy of a birth certificate have been provided to the tribe. A minor shall be considered an adult tribal member, if the minor is emancipated as provided in Family Code §7002. An emancipated minor must file with the treasurer a certified copy of (1) a valid marriage certificate, (2) orders establishing active duty in the armed forces, or (3) a court order issued pursuant to Family Code §7123. If the minor has not filed such proof of emancipation with the treasurer, he or she shall be considered a' minor for all purposes under this Article, until on and after the date such order is filed with the treasurer.

  4. "Net revenues" means gross revenues from the Win River Casino Bingo facility less amounts paid out as, or paid for, prizes, total operating expenses, debt service, and required payments on the capital advance and excluding management fees.

  5. "Net revenues account" means one or more accounts in a federally insured financial institution or a financial instrument backed by the full faith and credit of the federal government, at least one of which is interest bearing, into which the treasurer deposits, or which the treasurer purchases with, net revenues exclusively. No other funds shall be deposited or used to purchase instruments in the net revenues account.

  6. "Payment date" means the twentieth day of each month or the last business day before the twentieth of the month and is the date for payment of per capita benefits to legally competent adult Tribal members.

  7. "Per capita benefit" means (1) a payment from net revenues in any month to a living legally competent adult tribal member who has a current address on file with the treasurer, (2) funds set aside pursuant to the Plan for the benefit of a living minor tribal member who will not reach the age of fourteen in the year of the contribution, or (3) a contribution to a Custodial Trust for the benefit of a living minor tribal member not described in clause (2) or for the benefit of a legally incompetent adult tribal member, the amount of which is determined by dividing the total net revenues available for distribution by the number of tribal members living on the payment date who have current addresses on file with the treasurer. Per capita benefits shall be equal in amount for each tribal member entitled to a benefit.

  8. "Per capita benefit account" means a separate account in a federally insured financial institution which can be used to distribute funds to tribal members, set aside funds pursuant to the Plan or contribute funds to Custodial Trusts, through checks, electronic fund transfers or other means.

  9. "Plan" means the plan described in paragraph 6 of Section 1000 hereof and the terms of which are set forth in Resolution No. 8-31-98C.

  10. "Rabbi Trust" means the trust described in paragraph of Section 1000 hereof and the terms of which are set forth in Resolution No. 8-31-98A.

  11. "Quarter" means the following three month periods in any calendar year: January 1 to March 31, April 1 to June 30, July 1 to September 30 and October 1 to December 31.

  12. "Treasurer" means the tribal treasurer as specified in the Constitution of the Redding Rancheria or some other employee or official designated by resolution of the Tribal Council to administer net revenues under this Article.

  13. "Tribal member" means any person, regardless of age, who is an enrolled member of the Redding Rancheria for the entire month for in which per capita benefits are paid, set aside pursuant to the Plan, or contributed to Custodial Trusts.

  14. "Tribal programs account" means one or more separate accounts in a federally insured financial institution or financial instruments backed by the full faith and credit of the federal government or other approved investment under a tribal funds investment policy adopted by the Tribal Council into which the treasurer deposits tribal programs funds.


Section 1001 - Division of net revenues

  1. Upon receipt of the tribe's share of net revenues, the treasurer shall deposit the funds in the net revenues account.

  2. By the twelfth day of each month, the treasurer shall prepare an accounting of the total net revenues in the net revenues account from the previous month. The treasurer shall deposit 60% of such total net revenues in the per capita benefits account and 40% in the tribal programs account.

  3. The treasurer shall prepare and present to the Tribal Council at its next regular meeting a report of the accounting prepared pursuant to this Section, the balance of the per capita benefits and tribal programs accounts, and the amount of the per capita benefits for the month (hereafter, "the monthly report").


Section 1002 - Per capita benefits

  1. Within ten (10) days of BIA approval of this Ordinance, and on the same date each year thereafter ("notice date"), the treasurer shall provide notice to tribal members or the parents or guardians of minors or incompetent members that in order to receive per capita benefits or have such benefits set aside pursuant to the Plan or contributed to a Custodial Trust, the tribal member or his or her parent or legal guardian must provide the treasurer with a current address. The treasurer shall be entitled to rely on the address provided by the member or other authorized instructions filed with the treasurer. The notice shall also inform legally competent adult tribal members that they may notify the treasurer to mail their payment, automatically deposit the payment in a designated account or hold the payment at the tribal office for the member to pick up. If signed and notarized by the legally competent adult member, the instructions may authorize the treasurer to release the check to another person. The member or authorized recipient shall provide picture identification when he or she picks up the check. The treasurer shall only release the check upon presentation of adequate identification.

    1. Such notice shall be given by regular first class mail to any tribal member for whom the treasurer has a mailing address.

    2. For a period of ten days after the notice date, the notice shall be conspicuously posted in an area readily visible to the general public in the tribal office, the Win River Casino Bingo facility, and the tribal health clinic.

    3. The notice shall be published as soon after the notice date as is possible in a newspaper of general circulation in the Redding area.

    4. Failure shall not give that tribal member any right of action or claim against the Redding Rancheria, its officers, agents or employees, or impose any obligation on the Redding Rancheria or any of its officers, agents or employees.

  2. By no later than the 20th day of each month, the treasurer shall:
    1. Make payment of per capita benefits for the previous month to each tribal member who is not a minor, by mailing checks, transferring funds or issuing and holding checks as directed by the tribal member. In the absence of specific instructions from the member, the treasurer shall mail the tribal member's check to the address on file with the treasurer;

    2. to each minor by setting aside funds pursuant to the Plan or contributing per capita benefits to a Custodial Trust for the benefit of such minor. The treasurer shall give notice of the set aside or contribution as provided in Section 1001.A.3.

  3. A copy of the monthly report and a notice that per capita payments are subject to federal income tax shall be furnished to each legally competent adult member with their per capita payment. The notice shall state that beginning January 1, 1995, the Tribe withholds federal income tax from per capita payments if the monthly payment exceeds $1600 or such other amount as the Internal Revenue Service (IRS) may require. Unless requested in writing to withhold a larger sum by the member, the Tribe will calculate federal withholding, using the Tables for Withholding On Distributions of Indian Gaming Profits to Tribal Members provided by the IRS. The Tribe will report per capita payments to the IRS on Form 1099 and make withholding deposits with the IRS, using Form 8109. The same notice regarding federal income taxes shall be provided to each beneficiary of a Custodial Trust with respect to the contributions to and earnings of such Custodial Trust, and income tax reporting and withholding shall apply to such contributions and earnings in the year of such contributions and earnings in the same manner as reporting and withholding apply to per capita payments made to legally competent adult members. A similar notice regarding federal income taxes shall be provided to each participant in the Plan with respect to distributions from the Plan, and income tax reporting and withholding shall apply to such distributions in the year of such distributions.

  4. Only tribal members living on the payment date and who have current addresses on file with the treasurer are entitled to a per capita payment. If a tribal member dies after the payment date but before the treasurer makes the per capita payment and the treasurer has prior notice of the death, the treasurer shall hold the tribal member's per capita payment and dispose of it as an asset of the deceased member's estate pursuant to the California Probate Code. The treasurer shall have no obligation to invest such payment or pay any interest thereon. If a participant in the Plan or a minor beneficiary of a Custodial Trust dies before his or her 21st birthday or if a legally incompetent adult beneficiary of a Custodial Trust dies with funds remaining in such trust, the funds shall be disbursed according to Resolution No. 8-31-98A or Resolution No. 8-31-98B, as applicable.

  5. Except as provided in subsection 4 nothing in this Article is intended to vest or vests in any tribal member or any other person any right or interest in the Win River Casino Bingo facility, the income produced by such facility, any other tribal assets, or the income produced by such assets. The General Council reserves the right to amend or repeal this Ordinance at any time and such amendment or repeal shall not represent a taking of any vested property right.


Section 1003 - Tribal programs funds

  1. Prior to the commencement of the tribe's fiscal year or as often as once each quarter, in the discretion of the Chief Executive officer, he or she shall prepare, in consultation with the heads of the tribal departments, a proposed budget for the funds contained in the Tribal Programs Account.

    1. The proposed budget shall consist of two parts:

      1. A line item budget showing in columns the individual expenditures grouped by categories with subtotals for each category, department, and/or project; and

      2. A budget narrative for each department or project explaining the purpose of each expenditure, the goals sought to be achieved and explaining how the expenditures will achieve the stated goals.

    2. The budget shall explain in both parts how other funds budgeted to the department or project will be used in combination with the Tribal Programs Account funds. It also may project expenditures that will require funds from future quarters. If a proposed budget anticipates funds from a future quarter or quarters, the budget narrative shall explain why budgeting the additional funds is necessary. The budget may anticipate accumulating funds from future quarters for a particular project or financing a project by pledging future revenues to repay borrowed funds.

    3. If the General Council approves a budget that anticipates or relies upon funds from a future quarter or quarters, any contract or other commitment, including employment or financing contracts dependent on that future funding, shall contain an express written provision, making any expenditure of funds beyond those funds available at the time of budget approval subject to the availability of funds in future quarters.

  2. The permissible uses of Tribal Programs Account funds shall include, but are not limited to, the following uses.

    1. Heath and Welfare;

    2. Education;

    3. Economic Development, including investment in tribally owned businesses;

    4. Housing;

    5. Social services;

    6. A revolving loan fund for low or no interest loans to tribal members;

    7. Land acquisition; and

    8. General administration.

  3. No Tribal Programs Account funds shall be used to make payments to or on behalf of individual tribal members, unless a specific program authorizing such payment has been approved by the Tribal Council. The approved program must include objective standards for determining eligibility for the payments and the amount of the payment. Subject to the availability of funds, the program must be available equally to all tribal members who meet the eligibility requirements, which shall not discriminate among tribal members on the basis of race, religion, age, sex, sexual orientation, marital status, income, geographic location or physical or mental disability.

  4. The budget shall be approved in accordance with the following procedure.

    1. Approval by the General Council.

      1. The General Council shall consider the budget as further provided herein and may approve, modify or reject the budget by a majority vote at a duly called General Council meeting at which a quorum is present.

        1. Not less than 45 days prior to the General Council meeting, the CEO shall give notice by first class mail of the meeting to all members who have an address on file. The notice shall state the time, date and place of the meeting and shall enclose a copy of the proposed budget.

        2. Copies of the proposed budget shall also be available at the tribal office for any member requesting one.

      2. At the meeting the CEO shall review the budget for the members, after which the Tribal Chairperson shall call for a vote on the budget.

      3. If a quorum fails to attend the General Council meeting within one hour after the time when the meeting was scheduled to begin, the Chairperson shall adjourn the meeting and the Budget Ballot Committee shall mail absentee ballots to all tribal members with instructions to mark the ballot in favor or against the proposed budget and to return the ballots by mail or in person to the tribal office by 3 p.m. on a date not earlier than 15 days after the ballots are sent. After 3 p.m. on that date, the Budget Ballot Committee shall count and tabulate the ballots and announce the election results. If less than the number of ballots constituting a quorum for a general council meeting are received, in proper form, the Budget Ballot Committee shall not tabulate the votes, and the budget may be reviewed and voted upon by the Tribal Council as provided in Subsection B.

    2. Approval by the Tribal Council.

      1. If the General Council fails to act on the budget as provided in Subsection A, the Tribal Council shall consider the proposed budget at a noticed public hearing.

        1. The notice shall state the date, time and place of the hearing, which may be a regular or special Tribal Council meeting and shall notify tribal members where the budget is available for review for a period of ten days prior to the hearing.

        2. Notice shall be given as provided in Section 1002.1 b-c.

        3. At the hearing the Tribal Council shall allow any tribal member to submit and shall consider written or oral comments on the proposed budget.

        4. After opening the hearing, the Tribal Council may continue the hearing without renoticing it.

        5. After closing the hearing, the Tribal Council shall approve, modify or reject the budge

Section 1004 - No waiver of tribal sovereignty.

No provision of this Article expressly or impliedly waives the sovereign immunity of the Redding Rancheria and its officers and employees or is intended to operate as a consent to suit.


CERTIFICATION

We, the undersigned duly elected officials of the Redding Rancheria, do hereby certify that on August 10, 1999, the foregoing Ordinance was adopted at a duly called meeting of the General Council of the Redding Rancheria with a quorum present by a vote of 38 for, 0 against, 9 abstaining and ____ absent.

                /s/                
Redding Rancheria, Chairperson [Leon Benner]

Dated:    8-12-99 
                /s/                
Redding Rancheria, Secretary [Hope Wilkes]
Dated:    8-12-99 


Present Council
1. Chairman - Edward R. Forman
2 Vice-Chairman -Tracy Edwards
3 . Secretary - Hope Wilkes
4 . Treasurer - Don Benner
5 . Councilperson - Debra Sarot
6 . Councilperson - Patty Spaulding
7. Councilperson - Bob Foreman Sr.
8 Alternate - Brenda Spidel
9. Alternate - Bobby Foreman Jr.
10. Alternate - Gary Hayward


RESOLUTION NO. 8-31-98A

RESOLUTION OF THE GENERAL COUNCIL OF THE REDDING RANCHERIA ESTABLISHING RABBI TRUST


WHEREAS,

WHEREAS, the Tribal Council of the Redding Rancheria ("Tribe") has adopted the deferred per capita benefit plan set forth in Resolution No. 8-31-98C(the "Plan");

WHEREAS, Tribe wishes to establish a trust (hereinafter called "Trust") and to contribute to the Trust assets that shall be held therein, subject to the claims of tribe's creditors in the event of tribe's Insolvency, as herein defined, until paid to Plan participants and their beneficiaries in such manner and at such times as specified in the Plan;

WHEREAS, it is the intention of Tribe to make contributions to the Trust to provide itself with a source of funds to assist it in the meeting of its liabilities under the Plan;

WHEREAS, the Tribal Council, acting by a majority of its duly-constituted members, shall be the initial trustee of the Trust ("Trustee");

NOW, THEREFORE, the Trust is hereby established, and the Trust shall be comprised, held and disposed of as follows


Section 1. Establishment of Trust.

  1. Tribe shall deposit with Trustee in trust ________________ [insert amount deposited] , which shall become the principal of the Trust to be held, administered and disposed of by Trustee as provided in this Resolution.

  2. The Trust shall become irrevocable 30 days following the issuance of a favorable private letter ruling regarding the trust from the Internal Revenue Service.

  3. The Trust is intended to be a grantor trust, of which the Tribe is the grantor, within the meaning of subpart E, part I, subchapter J, chapter 1, subtitle A of the Internal Revenue Code of 1986, as amended, and shall be construed accordingly.

  4. The principal of the Trust and any earnings thereon shall be held separate and apart from other funds of Tribe and shall be used exclusively for the uses and purposes of Plan participants and general creditors as herein set forth. Plan participants and their beneficiaries shall have no preferred claim on, or any beneficial ownership interest in, any assets the Trust. Any rights created under the Plan and this Trust document shall be mere unsecured contractual rights of Plan participants and their beneficiaries against Tribe. Any assets held by the Trust will be subject to the claims of tribe's general creditors under federal, state, and tribal law in the event of Insolvency, as defined in Section 3.A herein.

  5. Tribe, in its sole discretion, may at any time, or from time to time, make additional deposits of cash or other property in trust with Trustee to augment the principal to be held, administered and disposed of by Trustee as provided in this Resolution. Neither Trustee nor any Plan participant or beneficiary shall have any right to compel such additional deposits.


Section 2. Payments to Plan Participants and Their Beneficiaries.

  1. Tribe shall deliver to Trustee a schedule (the "Payment Schedule") that indicates the amounts payable in respect of each Plan participant (and his or her beneficiaries) , that provides a formula or other instructions acceptable to Trustee for determining the amounts so payable, the form in which such amount is to paid (as provided for or available under the Plan), and the time of commencement for payment of such amounts. Except as otherwise provided herein, Trustee shall make payments to the Plan participants and their beneficiaries in accordance with such Payment Schedule. Trustee shall make provision for the reporting and withholding of any federal, state or local taxes that may be required to be withheld with respect to the payment of benefits pursuant to the terms of the Plan and shall pay amounts withheld to the appropriate taxing authorities or determine that such amounts have been reported, withheld and paid by Tribe.

  2. The entitlement of a Plan participant or his or her beneficiaries to benefits under the Plan shall be determined by Tribe or such party as it shall designate under the Plan, and any claim for such benefits shall be considered and reviewed under the procedures set out in the Plan.

  3. Tribe may make payment of benefits directly to Plan participants or their beneficiaries as they become due under the terms of the Plan. Tribe shall notify Trustee of its decision to make payment of the benefits directly prior to the time amounts are payable to participants or their beneficiaries. In addition, if the principal of the Trust, and any earnings thereon, are not sufficient to make payments of benefits in accordance with the terms of the Plan, Tribe shall make the balance of each such payment as it falls due. Trustee shall notify Tribe where principal and earnings are not sufficient.


Section 3. Trustee Responsibility Regarding Payments to Trust Beneficiary when Tribe is Insolvent.

  1. Trustee shall cease payment of benefits to Plan participants and their beneficiaries if Tribe is insolvent. Tribe shall be considered "Insolvent" for purposes of this Trust Agreement if (i) Tribe is unable to pay its debts as they become due, or (ii) Tribe is subject to a pending proceeding as a debtor under the United States Bankruptcy Code, or (iii) Tribe is determined to be insolvent by ________________.

  2. At all times during the continuance of this Trust, as provided in Section 1.C hereof, the principal and income of the Trust shall be subject to claims of general creditors of Tribe under federal and state law as set forth below.

    1. The Chief Executive Officer of the Tribe shall have the duty to inform Trustee in writing of tribe's Insolvency. If a person claiming to be a creditor of Tribe alleges in writing to Trustee that Tribe has become Insolvent, Trustee shall determine whether Tribe is Insolvent and, pending such determination, Trustee shall discontinue payment of benefits to Plan participants or their beneficiaries.

    2. Unless Trustee has actual knowledge of tribe's Insolvency, or has received notice from Tribe or a person claiming to be a creditor alleging that Tribe is Insolvent, Trustee shall have no duty to inquire whether Tribe is Insolvent. Trustee may in all events rely on such evidence concerning tribe's solvency as may be furnished to Trustee and that provides trustee with a reasonable basis for making a determination concerning tribe's solvency.

    3. If at any time Trustee has determined that Tribe is insolvent, Trustee shall discontinue payments to Plan participants or their beneficiaries and shall hold the assets of the Trust for the benefit of tribe's general creditors. Nothing in this Trust Agreement shall in any way diminish any rights of Plan participants or their beneficiaries to pursue their rights as general creditors of Tribe with respect to benefits due under the Plan or otherwise.

    4. Trustee shall resume the payment of benefits to Plan participants or their beneficiaries in accordance with Section 2 of this Trust Agreement only after Trustee has determined that Tribe is not Insolvent (or is no longer Insolvent).

  3. Provided that there are sufficient assets, if Trustee discontinues the payment of benefits from the Trust pursuant to Section 3.B hereof and subsequently resumes such payments, the first payment following such discontinuance shall include the aggregate amount of all payments due to Plan participants or their beneficiaries under the terms of the Plan for the period of such discontinuance, less the aggregate amount of any payments made to Plan participants or their beneficiaries by Tribe in lieu of the payments provided for hereunder during any such period of discontinuance.


Section 4. Payments to Tribe.

Except as provided in Section 3 hereof, after the Trust has become irrevocable, Tribe shall have no right or power to direct Trustee to return to Tribe or to divert to others any of the Trust assets before all payment of benefits have been made to Plan participants and their beneficiaries pursuant to the terms of the Plan.


Section 5. Investment Authority.

In no event may Trustee invest in securities (including stock or rights to acquire stock) or obligations issued by Tribe, other than a de minimis amount held in common investment vehicles in which Trustee invests. All rights associated with assets of the Trust shall be exercised by Trustee or the person designated by Trustee, and shall in no event be exercisable by or rest with Plan participants, except that voting rights with respect to Trust assets will be exercised by Tribe. Tribe shall have the right, at any time, and from time to time in its sole discretion to substitute assets of equal fair market value for any asset held by the Trust.


Section 6. Disposition of Income.

During the term of this Trust, all income received by the Trust, net of expenses and taxes, shall be accumulated and reinvested.


Section 7. Accounting by Trustee.

Trustee shall keep accurate and detailed records of all investments, receipts, disbursements, and all other transactions required to be made, including such specific records as shall be agreed upon in writing between Tribe and Trustee. Within seventy-five (75) days following the close of each calendar year and within thirty (30) days after the removal or resignation of Trustee, Trustee shall deliver to Tribe a written account of its administration of the Trust during such year or during the period from the close of the last preceding year to the date of such removal or resignation, setting forth all investments, receipts, disbursements and other transactions effected by it, including a description of all securities and investments purchased and sold with the cost or net proceeds of such purchases or sales (accrued interest paid or receivable being shown separately) , and showing all cash, securities, and other property held in the Trust at the end of such year or as of the date of such removal or resignation, as the case may be.


Section 8. Responsibility of Trustee.

  1. Trustee may consult with legal counsel (who may also be counsel for Tribe generally) with respect to any of its duties or obligations hereunder.

  2. Trustee may hire agents, accountants, actuaries, investment advisors, financial consultants, or other professionals to assist it in performing any of its duties or obligations hereunder.

  3. Trustee shall have, without exclusion, all powers conferred on Trustees by applicable law, unless expressly provided otherwise herein, provided, however, that if an insurance policy is held as an asset of the Trust, Trustee shall have no power to name a beneficiary of the policy other than the Trust, to sign the policy (as distinct from conversion of the policy to a different form) other than to a successor Trustee, or to loan to any person the proceeds of any borrowing against such policy.

  4. Trustee shall have the power to invest the Trust assets consistent with the prudent person standard having the goal of preserving the Trust principal and producing a reasonable amount of income. Trustee shall follow the investment policy adopted by the Tribal Council in investing the Trust assets.

  5. Notwithstanding any powers granted to Trustee pursuant to this Resolution or to applicable law, Trustee shall not have any power that could give this Trust the objective of carrying on a business and dividing the gains therefrom, within the meaning of Section 301.7701-2 of the Procedure and Administrative Regulations promulgated pursuant to the Internal Revenue Code.


Section 9. Compensation and Expenses of Trustee.

Tribe shall pay all administrative and Trustee's fees and expenses. If not so paid, the fees and expenses shall be paid from the Trust.


Section 10. Resignation of Trustee.

  1. Trustee may resign at any time by written notice to Tribe, which shall be effective thirty (30) days after receipt of such notice unless Company and Trustee agree otherwise.

  2. Upon resignation of Trustee and appointment of a '. successor Trustee, all assets shall subsequently be transferred to the successor Trustee. The transfer shall be completed within thirty (30) days after receipt of notice of resignation, removal or transfer, unless Tribe extends the time limit.

  3. If Trustee resigns, a successor shall be appointed, in accordance with Section 11 hereof, by the effective date of resignation under paragraph A of this section. If no such appointment has been made, Trustee may apply to a court of competent jurisdiction for appointment of a successor or for instructions. All expenses of Trustee in connection with the proceeding shall be allowed as administrative expenses of the Trust.


Section 11. Appointment of Successor.

If Trustee resigns in accordance with Section 10.A hereof, Tribe may appoint any third party, such as a bank trust department or other party that may be granted corporate trustee powers under California law, as a successor to replace Trustee upon resignation. The appointment shall be effective when accepted in writing by the new Trustee, who shall have all of the rights and powers of the former Trustee, including ownership rights in the Trust assets. The former Trustee shall execute any instrument necessary or reasonably requested by Tribe or the successor Trustee or evidence the transfer.


Section 12. Amendment or Termination.

  1. This Trust Agreement may be amended by a written instrument executed by Trustee and Tribe. Notwithstanding the foregoing, no such amendment shall conflict with the terms of the Plan or shall make the Trust revocable after it has become irrevocable in accordance with Section 1.B hereof.
  2. The Trust shall not terminate until the date on which Plan participants and their beneficiaries are no longer entitled to benefits pursuant to the terms of the Plan unless sooner revoked in accordance with Section l.B hereof. Upon termination of the Trust any assets remaining in the Trust shall be returned to Tribe.


Section 13. Miscellaneous.

  1. Any provision of this Resolution prohibited by law shall be ineffective to the extent of any such prohibition, without invalidating the remaining provisions hereof.

  2. Benefits payable to Plan participants and their beneficiaries under this Resolution may not be anticipated, assigned (either at law or in equity), alienated, pledged, encumbered, or subjected to attachment, garnishment, levy, execution or other legal or equitable process.

  3. The trust terms contained in this Resolution shall be governed by and construed in accordance with the laws of California.


Section 14. Effective Date.

The effective date of this Trust Agreement shall be ____________________, 199__.

CERTIFICATION

We, the undersigned officers of the Tribe, do hereby certify that on ____________, 1998, the foregoing Resolution was adopted at a duly called meeting of the Tribal Council of the Redding Rancheria with a quorum present.

We further certify that this document is a true and correct copy of the original document on file with the Secretary of the Tribal Council and that it has not been amended or revoked.


                /s/                
Tribal Chairperson [Edward R. Forman]

Dated:    9/8/98 
                /s/                
Tribal Secretary [Debbie Sarot]
Dated:    9/8/98 




RESOLUTION No. 8-31-98B

RESOLUTION OF THE GENERAL COUNCIL OF THE REDDING RANCHERIA ADOPTING CUSTODIAL TRUSTS FOR MINORS AND LEGALLY INCOMPETENT ADULTS


WHEREAS,

  1. The General Membership adopted a Distribution Ordinance for the distribution of net profits from the Redding Rancheria gaming enterprise (Win River Casino) which has been approved by the Bureau of Indian Affairs in accordance with the Indian Gaming Regulatory Act (25 U.S.C. § 2710(b) (2) (B) .); and

  2. The Distribution Ordinance "Use of Gaming Revenues, "sets forth provisions regarding per capita benefits for minor Tribal members; and Custodial Trust Resolution Custodial Trust Resolution

  3. The Redding Rancheria ("Tribe") desires to clarify the provisions regarding the per capita benefits set aside for minor tribal members and other applicable sections in the years prior to the year they reach age 14 and per capita benefits set aside for minor tribal members in the year they reach age 14 and in subsequent years, including trust provisions; and

  4. The General Membership has determined that the provisions regarding benefits for minors, including trust provisions should be embodied in resolutions adopted by the Tribal Council, as long as the resolutions comply with the requirements of the ordinance; and

  5. Certain clarifying amendments shall be made to the Ordinance concurrently with the adoption of these resolutions.

NOW, THEREFORE, BE IT RESOLVED as follows:


Section 1. Establishment of Trust.

  1. As set forth in paragraph 7 of Section 1000 of The Minors Trust Ordinance, the General Council has determined that it is in the best interests of each minor tribal member (1) in the years prior to reaching age 14 as to the Excluded Amount, and (2) in the year such member reaches the age of fourteen and in subsequent years, and that it is in the best interests of each adult tribal member who has been declared incompetent by a court of competent jurisdiction, to contribute per capita benefits for such member to a custodial trust to be invested, with income earned on trust principal to be accumulated in the trust (the "Custodial Trusts") , for future distribution to such member as provided herein. All terms used herein shall have the same meaning as provided in the Minors Trust Ordinance, unless a different meaning is expressly provided herein.

  2. There is hereby established a separate Custodial Trust for the benefit of each minor tribal member who is eligible for per capita benefits under the Distribution Ordinance in any month in the year before such member reaches age 14 as to the Excluded Amount and such member reaches the age of 14, and in any month thereafter while such member is still a minor. All per capita benefits for each such member in the year such member reaches the age of 14, and thereafter while such member is still a minor, shall be transferred to the Custodial Trust for such member. The Excluded Amount of the per Capita benefit shall be transferred to the Custodial Trust for such minor members in each year before the year when the minor reaches age 14.

  3. There also is hereby established a separate Custodial Trust for the benefit of each adult tribal member who has been declared legally incompetent by a court of competent jurisdiction and who is eligible for per capita benefits under the Distribution Ordinance. All per capita benefits for each such member shall be transferred to the Custodial Trust for such member.

  4. The amount of benefits to be contributed to each Custodial Trust each month shall be determined as set forth in paragraph H of Section 1001 of the Distribution Ordinance.

  5. Each separate trust created by this Resolution shall bear the name of the individual for whom it is created and shall be administered pursuant to the provisions of this Resolution for the primary benefit of the individual for whom it is named. The trustee agrees, and any co-trustees and successors by accepting their trusteeships also agree, to administer such assets and all future assets of each separate trust in accordance with the terms of this Resolution.

  6. The Tribal Council may create a separate trust under this Resolution for the primary benefit of any other individual by making a contribution to the trustee designated for a trust in such individual's name, and, upon acceptance a separate trust for the benefit of such individual shall be established. Any contribution to the trustee that is not designated for a particular trust shall be allocated equally among all trusts then being administered.

  7. References in the singular to a trustee include all trustees empowered to act.

  8. It is the intent of the General Council that contributions to and earnings of each Custodial Trust shall be includible in the gross income of the beneficiary for federal income tax purposes in the year(s) of the contributions and earnings, respectively. The Tribal Council intends to seek a private letter ruling from the Internal Revenue Service regarding the tax treatment of the benefits contributed to the Custodial Trusts.

  9. The Custodial Trusts shall be irrevocable; provided, however, that the Tribal Council may revoke or modify any trust if necessary and appropriate in order to obtain a favorable private letter ruling, within ninety days after any unfavorable private letter ruling is issued with respect to such trusts, or within ninety days after the private letter ruling request with respect to such trusts is withdrawn by the Tribal Council. The Tribal Council may amend any provision of Sections 3 to 8 of this Resolution.


Section 2. Designation of trustee and beneficiary.

Each minor and legally incompetent adult member is a beneficiary of a Custodial Trust and the Tribal Council acting by a majority of its duly constituted members, is the initial trustee of each Custodial Trust. The Tribal Council may resign as trustee and shall have the power to appoint additional and successor trustee's and to remove any acting trustee by a written instrument executed by the Tribal Council.


Section 3. Investment of trust assets.

Trustee shall have the power to invest the Trust assets consistent with the prudent person standard having the goal of preserving the Trust principal and producing a reasonable amount of income. Trustee shall follow the investment policy adopted by the Tribal Council in investing the Trust assets. It is the Tribal Council's specific intention and direction that the assets of the separate trusts be combined for ease of administration provided that the separate character of the beneficiaries' proportionate shares is preserved. All rights associated with assets of each separate trust shall be exercised by the trustee or the person designated by the trustee. The Trustee shall make provision for the reporting and withholding of any federal, state or local taxes that may be required to be withheld with respect to contributions or earnings of the trust and shall pay amounts withheld to the appropriate taxing authority. Trustee may establish a program under which beneficiary may direct the investment of trust assets after the beneficiary (1) reaches age 19 and until the trust terminates and (2) completes a course of training in investment and money management prescribed by trustee.


Section 4. Administration of Separate Trusts.

  1. Income. The trustee shall accumulate the net income of each separate trust and add such accumulated net income to principal.

  2. Use of trust assets for benefit of beneficiary. In the case of each separate trust, the trustee is authorized to expend trust funds for the benefit of the beneficiary, when in the discretion of the trustee, such expenditure is necessary for the health, education, or welfare of the beneficiary.

    1. The beneficiary or his or her parent or guardian, if the beneficiary is a minor, or his or her guardian, if the beneficiary is a legally incompetent adult, may file a written request with the trustee to expend funds for the beneficiary during the term of the trust. The burden shall be on the applicant to demonstrate that the expenditure is necessary for the health, education, or welfare of the beneficiary to the extent no other funds are available for these purposes, including public assistance and medicaid. Funds may be used to assist in the purchase of a house or condominium for a beneficiary, only if title is taken in the beneficiary's or the trustee's name. Funds may not be used for rent or to meet the beneficiary's ordinary living expenses. The trustee may impose conditions on the use of the money that it deems necessary to insure that the expenditure benefits the beneficiary. Such conditions may include paying the funds directly to the vendor, school, health care provider, etc., which provides goods or services to the beneficiary.

    2. The trustee shall consider an application filed pursuant to Section 4.B.1 after the application is submitted. If the Tribal Council has not been succeeded as trustee, the application shall be considered in a closed session at its next regular meeting after the application is submitted. The trustee shall provide notice of the time and place of the meeting to each parent and/or legal guardian of the beneficiary, if it knows the address and the parent or legal guardian does not reside with the beneficiary. The beneficiary and each of his or her parents or legal guardians may address the trustee at that time.

    3. If the minor, parent(s) or legal guardian remains dissatisfied with the decision of the trustee, he or she may appeal that decision to the General Council by filing a written request for an appeal with the trustee. The written request shall include a waiver of confidentiality, because confidentiality can be preserved in an appeal to the General Council. The General Council shall consider the appeal at its next regular or special meeting after the appeal request is filed with the trustee. Notice of the meeting shall be provided as set forth in Section 4.B.2. The decision of the General Council shall be final.

  3. Termination of trust. In the case of each separate trust for a minor beneficiary, the trust terminates on the beneficiary's 21st birthday or at death if the beneficiary dies before age 21.

    1. When the beneficiary reaches the age of 21, the trust assets shall be distributed to the beneficiary, upon application of the beneficiary, providing sufficient evidence of eligibility, approved by the trustee, in four installments as follows: in the initial installment payable as soon as administratively feasible, 25% of the assets; three months after the initial installment, 33% of the assets; three months after the second installment, 50% of the assets; and three months after the third installment, the balance of the assets.

    2. If the beneficiary dies before reaching the age of 18, the trust assets shall be distributed as soon as administratively feasible in a single lump-sum payment to the beneficiary's parents, if any. "Parent" for this purpose means a tribal member who is the beneficiary's natural or adoptive parent. If the beneficiary is survived by two tribal member parents, the trust assets shall be divided equally between them and paid to each of them, unless the Tribal Council on a referral by the treasurer finds good cause for a different division, subject to an appeal to the General Council similar to the appeal provided in Section 4.B.3. If the beneficiary dies without parents, the trust assets shall be distributed as soon as administratively feasible in a single lump-sum payment to the beneficiary's estate.

    3. If the beneficiary dies after reaching the age of 18 but before all trust assets have been distributed, the trust assets shall be distributed as soon as administratively feasible in a single lump-sum payment to the alternate beneficiary or beneficiaries designated in accordance with Section 4.C.4 or, in the absence of an alternate beneficiary or beneficiaries, to the beneficiary's estate.

    4. A beneficiary who is 18 years old or older may designate who will receive his or her trust assets, if he or she dies before age 21. To do so, the beneficiary must file a notarized statement with the treasurer containing the full name, age and address of the person or persons. The beneficiary may change the designation at any time by filing a new notarized statement.

  4. Termination of trust for legally incompetent adults In the case of each separate trust for a legally incompetent adult beneficiary, the trust terminates at the death of the beneficiary. The trust assets shall be distributed as soon as administratively feasible in a single lump-sum payment to the beneficiary's estate.


Section 5. Accounting by trustee.

For each separate trust, the trustee shall keep accurate and detailed records of all investments, receipts, disbursements, and all other transactions required to be made, including such specific records as shall be agreed upon in writing between Tribal Council and the trustee. Within seventy-five (75) days following the close of each calendar year, the trustee shall deliver to the beneficiary and his/her parent(s) or legal guardian a written account of its administration of the trust during such year or during the period from the close of the last accounting, setting forth all investments, receipts, disbursements and other transactions effected by it, including a description of all securities and investments purchased and sold with the cost or net proceeds of such purchases or sales (accrued interest paid or receivable being shown separately) , and showing all cash, securities, and other property held in the trust at the end of such year.


Section 6. Trustees.

  1. If any trustee, if there is more than one trustee, fails to qualify or ceases to serve and no successor is appointed, such trustee need not be replaced and the remaining trustee or trustees may act alone. No bond or other security will be required in any jurisdiction of any trustee. Any requirement that any trustee qualify in court is waived.

  2. The trustee may consult with legal counsel (who may also be counsel for the Tribe generally) with respect to any of its duties or obligations hereunder.

  3. In addition to the powers and duties prescribed above, and except as otherwise limited by this Resolution, the trustee shall have the following powers or, where so provided, duties, exercisable without approval, order or license of any court:

    1. To sell, exchange or otherwise dispose of any asset upon any terms and conditions to any person, corporation or entity, whether or not a beneficiary, trustee or agent under this Resolution;

    2. To hold any assets in the trustee's own name without disclosure of fiduciary capacity or in the name of a nominee and to exercise all rights and powers respecting any assets that could be exercised by a competent adult owning the same, provided, however, that if an insurance policy is held as an asset for a separate trust, the trustee shall have no power to name a beneficiary of the policy (as distinct from conversion of the policy to a different form) other than to a successor trustee, or to loan to any person the proceeds of any borrowing against such policy;

    3. To deposit cash in any depository, notwithstanding personal interest in the depository;

    4. To determine values, distribute like and unlike assets to different beneficiaries or trusts, make distributions in cash or kind at any time and cause the administration of any trust to be commenced whenever the trustee deems advisable;

    5. To employ agents, lawyers, investment counsel, accountants, banks or trust companies and others, to delegate both ministerial and discretionary powers to them, and to pay for services rendered by such persons as a trust administration expense;

    6. To combine the assets of any trust with those of any other trust under this Resolution for ease of administration, preserving the separate character of the beneficiaries' proportionate shares, and to merge the assets of any trust with those of any other trust maintained for the same beneficiary upon substantially the same terms (and if the merged trusts are governed by different perpetuities rules or perpetuities rule savings clauses, the rule or savings clause providing for the shorter perpetuities period shall govern the merged trusts); and

    7. To prepare and file any and all fiduciary tax returns, if any, that may be required by law.

    8. To exercise all other powers conferred on fiduciaries generally by law, to the extent they are not inconsistent with other provisions of this Resolution, and to perform all other acts necessary or advisable to administer any trust.


Section 7. Compensation and expenses of trustee.

All administrative and trustee's fees, if any, and expenses, including investment expenses, with respect to each separate trust shall be paid by the trustee from the general fund of' the Tribe or from the trust, in the discretion of the Tribal Council.


Section 8. Miscellaneous.

  1. Any provision of this Resolution prohibited by law shall be ineffective to the extent of any such prohibition, without invalidating the remaining provisions hereof.

  2. Despite any other provision of this Resolution to the contrary, neither trust income nor principal nor any beneficiary's interest therein shall be subject to alienation, assignment, encumbrance or anticipation by the beneficiary; to garnishment, attachment, execution or bankruptcy proceedings; to claims for spousal maintenance, child support or an equitable division of property incident to the dissolution of marriage; to any other claims of any creditor or other person against the beneficiary; or to any other transfer, voluntary or involuntary, by or from any beneficiary.

  3. Despite any other provision of this Resolution to the contrary, any payment or distribution to a beneficiary who is incompetent, under other legal disability, or under the age of 21 years may be made directly to the beneficiary despite the disability, to a custodian designated by the trustee under any applicable Uniform Gifts or Transfers to Minors Act, or to a parent, legal guardian or conservator.

  4. The separate trusts shall be governed by and construed in accordance with the laws of California.


CERTIFICATION

We, the undersigned officers of the Tribe, do hereby certify that on _____________, 1998, the foregoing Resolution was adopted at a duly called meeting of the Tribal Council of the Redding Rancheria with a quorum present.

We further certify that this document is a true and correct copy of the original document on file with the Secretary of the Tribal Council and that it has not been amended or revoked.

                /s/                
Tribal Chairperson [Edward R. Forman]

Dated:    9/8/98 
                /s/                
Tribal Secretary [Debbie Sarot]
Dated:    9-8-98 


RESOLUTION NO 8-31-98C

RESOLUTION OF THE GENERAL COUNCIL OF THE REDDING RANCHERIA ESTABLISHING DEFERRED PER CAPITA BENEFIT PLAN FOR MINOR TRIBAL MEMBERS


WHEREAS,

  1. In Ordinance No. ___, the General Membership adopted a distribution ordinance for the distribution of net profits from the Redding Rancheria gaming enterprise which has been approved by the Bureau of Indian Affairs in accordance with the Indian Gaming Regulatory Act (25 U.S.C. § 2710(b) (2) (B) .); and

  2. The ordinance sets forth provisions regarding per capita benefits for minor tribal members; and

  3. The Redding Rancheria ("Tribe") desires to clarify the trust and other provisions regarding the per capita benefits set aside for minor tribal members in the years prior to the year they reach age fourteen (14) and per capita benefits set aside for minor tribal members in the year they reach age fourteen (14) and in the subsequent years; and

  4. The General Council has determined that the provisions regarding benefits for minors, including trust provisions, should be embodied in resolutions adopted by the Tribal Council, as long as the resolutions comply with the requirements of the ordinance; and

  5. Certain clarifying amendments shall be made to the Ordinance concurrently with the adoption of these Resolutions.

NOW, THEREFORE, BE IT RESOLVED as follows:


Section 1. Establishment and Terms of Plan.


The deferred per capita benefit plan set forth herein (the "Plan") is established by the Tribal Council of the Redding Rancheria (the "Tribe") to implement paragraph 6 of Section 1000 of Article 2 of Chapter 1 of Division 2 of the Redding Rancheria Tribal Code, as amended (the "Ordinance").


Section 2. Description of Plan.

  1. The General Council has determined that it is in the best interests of each minor tribal member in years prior to the year such member reaches the age of 14 to set aside funds for future payment of deferred per capita benefits to such member in four annual installments beginning 30 days after the member reaches the age of 21.

  2. Pursuant to the Plan, amounts shall be set aside for each minor tribal member each month in years prior to the year such member reaches the age of 14. The amount of funds to be set aside each month shall be determined as set forth in paragraph H of Section 1001 of the Ordinance.

  3. It is the intention of the Tribal Council to contribute the amounts set aside for each minor each month to a trust containing the mandatory provisions contained in the model grantor trust set forth in Rev. Proc. 92-64, 1992-2 CB 422, adopted by the Internal Revenue Service, which provisions are set forth in Resolution No. ____ (the "Rabbi Trust") . The Tribal Council, acting by a majority of its duly-constituted members, shall be the initial trustee of the Rabbi Trust.

  4. A bookkeeping account shall be established for each Plan participant as described more fully in Section 4 hereof.

  5. Commencing 30 days after the Plan participant's 21st birthday, and continuing each year thereafter for a total of four years, the total amount credited to the Plan participant's bookkeeping account shall be paid to the Plan participant as described more fully in Section 5 hereof.

  6. It is the intent of the General Council that benefits payable under the Plan shall be includible in the gross income of the participant for federal income tax purposes no earlier than the year(s), and only to the extent, that the participant is entitled to distributions from the Tribe pursuant to the Plan. The Tribal Council intends to seek a private letter ruling from the Internal Revenue Service regarding the tax treatment of the benefits set aside under the Plan.

  7. The Rabbi Trust shall become irrevocable 30 days after the issuance of a favorable private letter ruling regarding the Plan and the Rabbi Trust by the Internal Revenue Service.

Section 3. Unfunded Benefits.


All deferred per capita benefits paid pursuant to the Plan shall be paid out of the general funds of the Tribe. Although the Rabbi Trust will be used as a vehicle for segregation and investment of funds for future payment of benefits under the Plan, the Plan participants shall not have any secured or preferred interest by way of a trust, escrow, lien or otherwise in any specific asset of the Tribe for payment of unpaid benefits under the Plan. The participants shall have an enforceable contract right for payment of the amounts payable to them under the terms of the Plan.

Section 4. Accounts. Establishment and Adjustment of Bookkeeping

There shall be established for each Plan participant a bookkeeping account representing the unfunded and unsecured general obligation of the Tribe established with respect to the participant, to which is credited the amounts set aside for future payment to the participant under the Plan, along with an adjustment made at least quarterly commensurate with the net investment return (positive or negative) on the funds in the Rabbi Trust, and from which is subtracted any distributions made to the participant. The Tribe may establish such rules as it deems appropriate, not inconsistent with the Plan, to administer the investment return adjustment for participants.


Section 5. Payment of Benefits.

  1. Commencing 30 days after the Plan participant's 21st birthday, and continuing each year thereafter for a total of four years, the total amount credited to the Plan participant's bookkeeping account shall be paid to the Plan participant in accordance with the following schedule: 30 days after 21st birthday, 25% of such account; 30 days after 22nd birthday, 33% of such account; 30 days after 23rd birthday, 50% of such account; and 30 days after 24th birthday, the balance of such account.

  2. In the event the Plan participant dies before all plan benefits have been paid, the total amount credited to the Plan participant's bookkeeping account shall be paid in four installments, commencing on the date which is 30 days after the Tribal Council determines the beneficiary or beneficiaries of the Plan participant in accordance with the procedure set forth in paragraph C of this Section 5, and continuing each year thereafter, according to the following schedule: 30 days after determination by the Tribal Council; 25% of such account; 30 days after the first anniversary of such determination, 33% of such account; 30 days after the second anniversary, 50% of such account; and 30 days after the third anniversary of such determination, the balance of such account.

  3. The Plan participant's parents, if any, are his/her beneficiaries under the plan, unless the parents have designated another beneficiary or beneficiaries by filing a written, notarized designation with the Tribal Council prior to the Plan participant's 18th birthday. "Parent" for this purpose means a tribal member who is the minor's natural or adoptive parent. After reaching age 18, a Plan participant may designate the beneficiary or beneficiaries who will receive his or her benefits pursuant to the Plan, if he or she dies before all Plan benefits have been paid. To do so, the Plan participant must file a notarized statement with the treasurer containing the full name, age and address of the person or persons. The Plan participant may change the designation at any time by filing a new notarized statement. An effective beneficiary designation by the Plan participant shall supersede any beneficiary designation by the Plan participant's parents. If a Plan participant dies without making a beneficiary designation and without his or her parents making a beneficiary designation, and if such participant dies without designating a beneficiary and is survived by two tribal member parents, the trust assets shall be divided equally between them, unless the Tribal Council on a referral by the treasurer finds good cause for a different division, subject to an appeal to the General Council. Good cause may include, but is not limited to, a finding that one of the I parents failed to maintain a parental relationship with the Plan participant. If a Plan participant dies without making a beneficiary designation and without his or her parents making a beneficiary designation and is not survived by tribal member parents, the trust assets shall be transferred in accordance with the provisions of the California Probate Code.


Section 6. Right to Early Payment For Unforeseeable Emergencies.

The Tribal Council, in its sole discretion, may disburse benefits under the Plan in advance of the payment dates described in Section 5 only in the event of an unforeseeable emergency. For this purpose, "unforeseeable emergency" shall mean only severe financial hardship to the participant resulting from a sudden and unexpected illness or accident of the participant or of a dependent of the participant (with "dependent" defined in Section 152(a) of the Internal Revenue Code of 1986, as amended, or any successor provision), loss of the participant's property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant. The circumstances that will constitute an unforeseeable emergency will depend upon the facts of each case, but, in any case, payment may not be made to the extent that such hardship is or may be relieved (a) through reimbursement or compensation by insurance or otherwise, or (b) by liquidation of the participant's assets, to the extent the liquidation of such assets would not itself cause severe financial hardship. Examples of what are not considered to be unforeseeable emergencies include the need to send a participant's child to college or the desire to purchase a home. Withdrawals of amounts because of an unforeseeable emergency must only be permitted to the extent reasonably needed to satisfy the emergency need.


Section 7. Plan May be Modified By Tribal Council.

The Plan may be amended by the Tribal Council for any reason, including any amendments determined to be necessary or appropriate in order to obtain a favorable private letter ruling from the Internal Revenue Service regarding the Plan and the Rabbi Trust.


CERTIFICATION

We, the undersigned officers of the Tribe, do hereby certify that on ____________, 1998, the foregoing Resolution was adopted at a duly called meeting of the Tribal Council of the Redding Rancheria with a quorum present.

We further certify that this document is a true and correct copy of the original document on file with the Secretary of the Tribal Council and that it has not been amended or revoked.

                /s/                
Tribal Chairperson [Edward R. Forman]

Dated:    9/8/98 
                /s/                
Tribal Secretary [Debbie Sarot]
Dated:    9-8-98 
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