Title 25IndiansRelease 119-73

§2213 Administration of acquired fractional interests; disposition of proceeds

Title 25 › Chapter CHAPTER 24— - INDIAN LAND CONSOLIDATION › § 2213

Last updated Apr 6, 2026|Official source

Summary

Tribes that receive a fractional ownership share can act like co-owners. They may lease the land, sell resources, agree to rights-of-way, or make other lawful deals affecting the trust or restricted land. However, the Secretary can place a legal claim on any money earned from that interest until the claim is lifted. While the claim is in place, deals must say the money goes to the Secretary and those funds go into the Acquisition Fund under section 2215. The Secretary can also approve those deals for the tribe even if other laws would normally prevent that. The Secretary must lift the claim if the cost to manage the land will meet or exceed its income, if it would take too long to recover the purchase price, or if value drops and it becomes unlikely to recover the price. The claim is also removed when the purchase price is paid into the Acquisition Fund, unless the tribe agrees to keep the claim to raise more funds. If the Secretary holds an undivided interest for a tribe and a lease applies, the tribe still gets its share of payments but is not treated as a party to the lease, and its sovereignty is unchanged.

Full Legal Text

Title 25, §2213

Indians — Source: USLM XML via OLRC

(a)Subject to the conditions described in subsection (b)(1), an Indian tribe receiving a fractional interest under section 2212 of this title may, as a tenant in common with the other owners of the trust or restricted lands, lease the interest, sell the resources, consent to the granting of rights-of-way, or engage in any other transaction affecting the trust or restricted land authorized by law.
(b)(1)The Secretary shall have a lien on any revenue accruing to an interest described in subsection (a) until the Secretary provides for the removal of the lien under paragraph (3), (4), or (5).
(2)(A)Until the Secretary removes a lien from an interest in land under paragraph (1)—
(i)any lease, resource sale contract, right-of-way, or other document evidencing a transaction affecting the interest shall contain a clause providing that all revenue derived from the interest shall be paid to the Secretary; and
(ii)any revenue derived from any interest acquired by the Secretary in accordance with section 2212 of this title shall be deposited in the fund created under section 2215 of this title.
(B)Notwithstanding section 5123 of this title, or any other provision of law, until the Secretary removes a lien from an interest in land under paragraph (1), the Secretary may approve a transaction covered under this section on behalf of an Indian tribe.
(3)The Secretary may remove a lien referred to in paragraph (1) if the Secretary makes a finding that—
(A)the costs of administering the interest from which revenue accrues under the lien will equal or exceed the projected revenues for the parcel of land involved;
(B)in the discretion of the Secretary, it will take an unreasonable period of time for the parcel of land to generate revenue that equals the purchase price paid for the interest; or
(C)a subsequent decrease in the value of land or commodities associated with the parcel of land make it likely that the interest will be unable to generate revenue that equals the purchase price paid for the interest in a reasonable time.
(4)The Secretary shall remove a lien referred to in paragraph (1) upon payment of an amount equal to the purchase price of that interest in land into the Acquisition Fund created under section 2215 11 See References in Text note below. of this title, except where the tribe with jurisdiction over such interest in land authorizes the Secretary to continue the lien in order to generate additional acquisition funds.
(5)The Secretary may, in consultation with tribal governments and other entities described in section 2212(b)(3) of this title, periodically remove liens referred to in paragraph (1) from interests in land acquired by the Secretary.
(c)(1)Paragraph (2) shall apply with respect to any undivided interest in allotted land held by the Secretary in trust for a tribe if a lease or agreement under subsection (a) is otherwise applicable to such undivided interest by reason of this section even though the Indian tribe did not consent to the lease or agreement.
(2)The lease or agreement described in paragraph (1) shall apply to the portion of the undivided interest in allotted land described in such paragraph (including entitlement of the Indian tribe to payment under the lease or agreement), and the Indian tribe shall not be treated as being a party to the lease or agreement. Nothing in this section (or in the lease or agreement) shall be construed to affect the sovereignty of the Indian tribe.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 2215 of this title, referred to in the original in subsec. (b)(4), probably should have been “section 216”, meaning section 216 of Pub. L. 97–459, which is classified to section 2215 of this title and relates to the establishment of an Acquisition Fund. Pub. L. 97–459 does not contain a section 2215.

Amendments

2004—Subsec. (b). Pub. L. 108–374 added subsec. (b) and struck out heading and text of former subsec. (b) which related to conditions applicable to the administration by Indian tribes of acquired fractional interests in trust or restricted lands.

Reference

Citations & Metadata

Citation

25 U.S.C. § 2213

Title 25Indians

Last Updated

Apr 6, 2026

Release point: 119-73