Band of Pomo Indians (2025)

Dry Creek Rancheria

Band of Pomo Indians

Government Code

TITLE 15. DRY CREEK RANCHERIA AMENDED AND RESTATED TRIBAL LAND

LEASING CODE

Effective November 7, 2025

TABLE OF CONTENTS

Page

CHAPTER 1. GENERAL PROVISIONS 0000 eseecceeeseeseeereceseeeeeceeenecsecsecneceeeseesesseesenaes 1

SECTION 101. Short Title 0... ccccecccssscsseeseeseecceeesececeseeseeeeeecessecsessessesaeeseeeceaesasseeseeeeaeaes 1

SECTION 102. Purpose and Applicability... esecessecsseeeeesseeseeeeeeessessesssesnessaesaeenneens 1

SECTION 103. Authority 20. eeceeesceneeneenersesseesesseeeeesscesseeneseeseeeeeeseesessesseeaessaeeeeasegs 1

SECTION 104. Defimitions.........cceecesccescesseceseeeseeeseeessecseeeseecensecenasesaeeeseceeeeteeeeasesaecesaeenenegs 2

SECTION 105. —_ Effective Date oo. ccccceccseceseeesseesessesscsecesesseesaeseesececesecsassetsessesseeaceseenene® 5

SECTION 106. Approving Authority; Approval; Managing Authority... eee eeeeeees 5

SECTION 107. Applicable Law... cccccsesssssseceseseeeessseccseeeeeeeeecseeseseseessecesseessceneesaesaeesaeeas 5

CHAPTER 2. OBTAINING A LEASE... eccneseeeeneenecneesseeaeeserseriecsecsessessesseeeeseseeseesegs 6

SECTION 201. Trnformation .......ccesccescssccssscessecseesseeessecseessncecsaeeesssessecesseeseessaessaeesaeeeaeeseaeons 6

SECTION 202. Supporting DoCuMent........cccesssscssecsecseecssesseceseseesaeeseesasessessesseesseensennes 6

SECTION 203. Minimum Provisions for Leases v0... ccs sseesceseneserseesssessceesscseesseereenates 6

CHAPTER 3. BUSINESS SITE AGREEMENT REQUIREMENTS oe eceeeeeeeeeceeeeeeeeees 7

SECTION 301. Terms and Conditions ....... ccc cccseessecsecseesseceseesseeseeesseseseneceesaeveees veceeeneeese 7

SECTION 302. Duration and Renewal......cccceccscscsscssceseeseceecseceeseserseevseceaesseeeseseeneseneens 7

SECTION 303. = Land Descriptions 0.00... ecccceesssseesnerseesecececenscneceseeecesaeseceseeeeadeseeneseaesaeeeaeeas 7

SECTION 304. —- Appraisals ...... cece esses sneccceeccsensesscneceesersaseesssecssssscsseeessscssnseseeees 7

SECTION 305. Fair Annual Lease Value 0.0... cccceecessessccsseecesecestesseceaeeeseeseaeseeeenneseneeenaeons 8

SECTION 306. Environmental Review Process ........ccccssccsssssssecceseeseeeceaeeesecsseceseesseesneeseseees 9

SECTION 307. Bon and Insurance... ccesccsssecesscensceecnsesseceneseeeseesseeaeesseesesssesseeaesaeseneens 9

SECTION 308. TMPLroVeMenttS .......cccesccsccesecesscerseeneeesssvsesesesoessssessessesessscnsenessssessenesneege 10

SECTION 309. Subleases, Assignments, Amendments and Leasehold Mortgages ........... 11

SECTION 310. — Indemnification. A Lease must contain the following provisions:............ 13

CHAPTER 4. RECORDS ooo. cccceeseceeeeeeteeseesetececsceseseeecsaeecesoneeeeseseeeeessseonesseesenseeates 13

SECTION 401. Records woe. eseseesceseserseecenecseeseeaesaceeeesaesseceesecessevsessessansesdsneeseeseeseens 13

SECTION 402. Ownership of Records... ecccsesseeccsseeseseessecesseeseessesseeseeeseesaesseeseesaeeaeeaees 14

CHAPTER 5. LEASE MANAGEMENT 0.0... ccceccscsssecesesseeseceeeeaeceeesaeessesaesecessessaeseseaeeneeenee 14

SECTION 501. - Management... ccsccsccsscsesssssscssessecsscssesssssscesssnscssessscesssssensssesseeseasaes 14

SECTION 502. Tribal Preference .......ccccsssesssssscseccessssecscstececesseesecsacenecesecneeaeeneesesensenees 14

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Proposed Amended and Restated Tribal Land Leasing Code

SECTION 503. — ACCOUNTING... ce eeeeccseeeeeseeteesseceneeneetseceaeeseseaeetaeesaeecesseesessaseadseaseaseeeeenuees 14

SECTION 504. — Administrative Fees ..ccciccccccssssceccccscssssessesssssssesersssersssscssenssseeessssaes 14

CHAPTER 6. ENFORCEMENT 0.00... ccccccsssesssesceseeeecesceseeseesecsceserseeseesceaesasseseesaesasessassaeeas 15

SECTION 601. General oc cecccsccccessessecseceeesecssesseceseessecnessaeecseeseesasecesseeseesaeesaesseeeneseesaees 15

SECTION 602. Defaults oes cee eeecesecsecneeerseeseeseenerseeseserseeesesaeeecesseesaesecsacaesseeseseeseseeas 15

SECTION 603. Default Rights and Remedies... ee ceeescnsecseeeetseerecseecsecnsesnsesnesseee 15

SECTION 604. — Petnallties occ ccceeseseessecseseecsseseeesseeeeeseseeeseessevesesesssensorsesseeeaesaaeeneseaees 17

SECTION 605. Harmful or Threatening Activities 2.0... cc cecccecseeesessseecseesseeseesseeseesaeesasens 17

SECTION 606. Hl dOVe oe eeceseescecceeteeeeeesseecsneeesseeesaeesssereeeceeessessesssssssseeeseessaeseseeneees 17

SECTION 607. ——_ TreSpass....ceccccesccccssseccscsecsssssessscesssssssessssesssesscssscsessssseeeseceesescesessnenesegs 17

CHAPTER 7. APPEALS 0.00. cccccesecsssseesceesseeseeececeeesecseeseeecseesecaeesessesasseeeesessavesneseeenoneeeaes 17

SECTION 701. ——_ Appeals ....ccceeecccsessseceserseceeceeeesecececeeceaeeeecessessesseesaceaessaesseesaecasensesaeeneees 17

SECTION 702. = Appeal Bond .occccccscccescnseesssssessesscsscnsesscnsensersensessenesersessesnessesneseeeegs 18

SECTION 703. Scope Of REVICW 00... cecsessceeesseesseessecsseensesscerecnsessecsseersensecsesssssseesssessasens 18

CHAPTER 8. ENVIRONMENTAL REVIEW PROCESS 0000... ecceecescceeceeteeeeeeeeteeerenes 18

SECTION 801. General esc eeeeccecccsseseseecesecseeneceseesnerseessecesesseseseeseessecseeseeseesseceaesaeseaesseeeneons 18

SECTION 802. Threshold Determination ..........ccccsceccescetestcececeseeectecseceaeeeecaeesaeeeseeeeeees 18

SECTION 803. — Action on Leasing Decision Subject to Completion of Environmental

Review Process. ....ccececcsssereeseceseesseseesassseesseesaesasesaesssoseeeaesaeessesaeesasensenaes 19

SECTION 804. — Environmental Review Process ........ccccecesssessesseeeeeneesasescsseeseesseseesasonseens 19

SECTION 805. —_ Notice of Completion of Draft ER uo. cee eeeeeseeeetesseeseereesecsaseassaeeeeane 20

SECTION 806. Conclusion of Environmental Review Process .......csceecesesessseeeeeeeteeees 21

CHAPTER 9. MISCELLANEOUS PROVISIONS ...0..o oc ccecccceeeeseceeeseeseeeeeeeseeseeeeenerseeseeserenes 21

SECTION 901. Severability cc eeccscsessseesessseesceessessecseesseeseesseessessessesssessesssesseseestaeveseons 21

SECTION 902. Amendment 000... eeceeeceeseesneeeseeeesaeeeeeeseersseseeeeeneceseesseessaseseeeeeaesasenaaeeeges 21

SECTION 903. Sovereign Immunity Preserved 0... ececesecseeeseneesestessecesseeseeseseeseeseesseaes 21

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CHAPTER 1. GENERAL PROVISIONS

SECTION 101. Short Title

This Code shall be entitled “Dry Creek Rancheria Amended and Restated Tribal Land

Leasing Code” (“Code”).

SECTION 102. Purpose and Applicability

(A) _ The purposes of this Code are to:

(1) Recognize the authority of the Dry Creek Rancheria to issue business site leases,

and establish streamlined procedures for environmental review, approval,

management and enforcement of leases;

(2) Promote self-determination, encourage economic self-sufficiency, attract and

enable third-party long-term financing, and increase business activity and

employment on lands of the Dry Creek Rancheria; and

(3) Implement the federal Helping Expedite and Advance Responsible Tribal Home

Ownership Act of 2012, Pub. L. No. 112-151, 126 Stat. 1150 (2012), codified at 25

U.S.C. § 415(h)(the “HEARTH Act”) to promote tribal housing on tribal trust

lands.

(B) This Dry Creek Rancheria Amended and Restated Tribal Land Leasing Code mandates

certain provisions to protect and preserve the Trust Land, provisions for trust asset

accounting, provisions for record keeping and title recording, and provisions for modern

leasing practices. Accordingly, Chapter 5 of this Code sets forth the Tribal land leasing

management system.

(C) The scope of application of this Code shall be limited to all Business Site Leases and to all

actions and decisions taken in connection therewith. This Code does not apply to mineral

leases or leases of privately held lands, including individual Indian owned trust allotments

and fractionated interests. This Code only applies to Tribal Trust and Restricted Fee land,

and therefore does not apply to tribally-owned fee lands. Nothing herein shall be construed

to affect the terms and conditions of leases of Tribal Trust Land in existence on the effective

date of this Code.

SECTION 103. Authority

This Code is adopted pursuant to the authority granted to the Dry Creek Rancheria Tribal Council

pursuant to its reserved powers under Article 4 of the Articles of Association, as adopted on

September 13, 1972, the Tribal Council Resolution No. 25-04-26 to Approve and Codify Dry

Creek Rancheria Amended and Restated Tribal Land Leasing Code, and the HEARTH Act.

Proposed Amended and Restated Tribal Land Leasing Code

SECTION 104. Definitions

For purposes of this Code:

(A)

(B)

(C)

(D)

(E)

(F)

(G)

(H)

()

(J)

(K)

(L)

(M)

“Applicant” means a Person that submits a proposal to enter into a Lease as a Lessee.

“Approving Authority” means the Board of Directors.

“Assignment” means an agreement between a Lessee and an assignee whereby the assignee

acquires all of the Lessee’s rights and assumes all the Lessee’s obligations under a Lease.

“Best Interest of the Tribe” means the balancing interests in providing incentives to

increase economic development, attracting and enabling long-term third-party financing,

preserving and enhancing the value of the Trust Land, increasing employment and jobs on

the Trust Land, and preserving the sovereignty of the Tribe, in each case as determined by

the Approving Authority.

“BIA” means the Bureau of Indian Affairs, United States Department of the Interior.

“Board of Directors” means the Dry Creek Rancheria Board of Directors.

“Bond” means a security for the performance of a duty or the payment of a debt.

“Business Site Agreement” means any Lease, Sublease or Leasehold Mortgage, as such

Business Site Agreement may be amended or modified from time to time and all

Assignments, as specified in such Business Site Agreement.

“Default” as used in this Code means a default or event of default under a Business Site

Agreement, as specified in such Business Site Agreement.

“Development Period” means, if applicable, the time period from when a Lease is executed

to when related improvements are expected to be substantially completed.

“Environmental Review Process” means the process for conducting an environmental

review to assess whether a proposed Project will have a Significant Effect on the

Environment, and to identify and evaluate any Significant Effects of the proposed action

on the environment.

“Environmental Reviewer” is the employee or officer of the Tribe from time to time

designated by the Approving Authority to act as the “Environmental Reviewer” under this

Code.

“Equity” means value of a business or a property, over and above the indebtedness against

it, and includes tangible and intangible assets, including capital stock, options, franchises,

trademarks, patents, copyrights, goodwill, contracts, facilities, infrastructure, and

equipment.

(N) “ER” means an environmental review, which comprises all of the documents relevant to

the Environmental Review Process for a specific Leasing Decision.

(O) “Executing Official” means the Tribe’s Chairperson.

(P) “Fair Annual Lease Value” means the most probable dollar amount a property should bring

in a competitive and open market reflecting all conditions and restrictions of the specified

Lease including term, rental adjustment and revaluation, permitted uses, use restrictions,

and expense obligations or other considerations, to the extent applicable, that drive

commercial viability of a proposed Project, proposed financing of the Project or

development of land; the lessee and lessor each acting prudently and knowledgeably, and

assuming consummation of the Lease as of a specified date and the creation of the leasehold

interest from the lessor to the lessee.

(Q) “Lease” means a written agreement or contract between the Lessor and a Lessee wherein

the Lessee is granted a right to possess all or part of the Trust Land and all or part of the

improvements thereon for a specific purpose and duration of time. The Lessee’s right to

possess the applicable Trust Land will limit the Lessor’s right to possess such Trust Land

only to the extent provided in the applicable Lease.

(R) “Leasehold Mortgage” means a mortgage, deed of trust or other instrument that encumbers

a Lessee’s leasehold interest in and under a Lease as security for obligations owed by the

Lessee to a lender.

(S) “Leasehold Mortgagee” means any mortgagee, trustee or beneficiary under, and any secured

party specifically identified in, a Leasehold Mortgage.

(T) “Leasehold Mortgagor” means a Lessee under a Lease, in its capacity as grantor, trustor or

mortgagor under a Leasehold Mortgage.

(U) “Leasing Decision” means the new Lease transaction that will be acted on by the

Approving Authority.

(V) “Lessee” means, in reference to a Lease, the Person who acquires a legal right to possess

Trust Land and improvements under the terms of such Lease.

(W) “Lessor” means, in reference to a Lease, the Tribe, as the party conveying a legal right to

possess Trust Land under the terms of such Lease.

(X) “LTRO” means the Land Titles and Records Office of the BIA having

jurisdiction/responsibility for the Trust Land.

(Y) “Managing Authority” means the Board of Directors or other tribal governmental entity

that has been delegated authority by the Board of Directors to serve as “Managing

Authority” under this Code.

(Z) “MOA” means the Memorandum of Agreement between the Tribe and County of Sonoma,

California, as amended on October 26, 2017, and as further amended from time to time.

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(AA)

(BB)

(CC)

(DD)

(EE)

(FF)

(GG)

(HH)

“NEPA” means the National Environmental Policy Act of 1969, 42 U.S.C. §§ 4321 et seq.

“Notice of Completion” means, for purposes of the Environmental Review Process, the

written notification announcing the completion of a draft or final environmental study or

supplemental environmental study.

“Person” means any natural person, corporation, limited liability company, unlimited

liability company, trust, joint venture, association, company, partnership or other entity.

“Project” means any development activity directly related to a proposed Leasing Decision

for all or part of the Trust Land that may have a Significant Effect on the Environment.

“Public” for purposes of the Environmental Review Process, means any person or entity

who can demonstrate that they will be directly substantially affected by a Business Site

Agreement.

“RREA” means River Rock Entertainment Authority, a wholly-owned unincorporated

instrumentality of the Tribe.

“Secretary” means the Secretary of Interior, U.S. Department of Interior, or its authorized

representative.

“Significant Effect on the Environment” means a substantial, adverse change in the

environment, including land, air, water, minerals, flora, fauna, ambient noise, cultural areas

and objects of historic, cultural or aesthetic significance.

“Sublease” means a written agreement by which a Sublessor grants to a Sublessee a right

to possess Trust Land leased by such Sublessor (as a Lessee) under a Lease.

“Sublessee” means, in reference to a Sublease, the Person who acquires a legal right to

possess Trust Land under the terms of such Sublease.

“Sublessor” means, in reference to a Sublease, the Person that grants a legal right to possess

Trust Land under the terms of such Sublease.

“Tribal Council” means the tribal members over the age of eighteen (18).

“Tribal Court” means the Dry Creek Rancheria Tribal Court.

“Tribal Law” means the body of law governing the land and activities occurring within the

jurisdiction of the Trust Land.

“Tribal Party” means the Tribe and the RREA.

“Tribal-State Compact” means the Tribal-State Compact between the State of California

and the Tribe, dated as of August 18, 2017, approved by the United States Department of

Interior on December 15, 2017 and published in the Federal Register on January 22, 2018,

as amended by the Amendment to the Tribal-State Compact, dated as of August 1, 2018,

approved by the United States Department of Interior on December 18, 2018 and published

in the Federal Register on December 27, 2018, and as further amended from time to time.

(QQ) “Tribe” means the Dry Creek Rancheria, Band of Pomo Indians.

(RR) “Trust or Restricted Land” means the surface estate of any tract of land held by the United

States in Trust or Restricted Status for the benefit of the Tribe; and land held by the United

States in trust for any corporation of the Tribe chartered under Section 17 of the Indian

Reorganization Act.

(SS) “Trust or Restricted Status” means land the title to which is held in trust by the United

States for the benefit of the Tribe, or land the title to which is held by the Tribe and which

can only be alienated or encumbered with the approval of the United States because of

limitations contained in the conveyance instrument pursuant to Federal law.

SECTION 105. Effective Date

This Code shall be effective upon enactment by the Tribal Council and approval by the Secretary,

or its authorized designee.

SECTION 106. Approving Authority; Approval; Managing Authority

The Approving Authority has statutory authority to approve or disapprove leasing and related

transactions, in each case to the extent provided herein, including Lease issuances and

Assignments, Subleases, Leasehold Mortgages and any amendments of Leases, Subleases and

Leasehold Mortgages (including any amendment and restatement thereof). This Code gives the

Board of Directors the power to act in the capacity of the Approving Authority hereunder.

A Tribal Party may enter into a Business Site Agreement and any amendment thereof (including

any amendment and restatement thereof), subject to the approval of the Approving Authority and

execution and delivery by the Executing Official, so long as such Business Site Agreement and

any amendment thereof (including any amendment and restatement thereof) complies with this

Code and is in the Best Interest of the Tribe.

This Code gives the Board of Directors or other tribal governmental entity that has been delegated

authority by the Board of Directors the power to act in the capacity of the Managing Authority

hereunder.

SECTION 107. Applicable Law.

A Business Site Agreement approved under this Code is subject to applicable Tribal Law, federal

laws and any other laws specified by the parties in the Business Site Agreement.

CHAPTER 2. OBTAINING A LEASE

SECTION 201. Information

Information on obtaining Leases shall be available at the Dry Creek Rancheria tribal offices.

SECTION 202. Supporting Documents

All Applicants shall submit the following documents to the Managing Authority who shall compile

all documents for final review by the Approving Authority:

1.

3.

4,

Any financial information the Approving Authority deems necessary to determine

whether the Applicant can meet the financial obligations of the proposed Lease;

Legal description of the Trust Land to be demised under the proposed Lease and, if

required by the Approving Authority, a site survey;

An environmental review where required; and

Other documents as may be required by the Approving Authority.

SECTION 203. Minimum Provisions for Leases

All Leases shall contain, at a minimum, the following provisions:

1.

The tract, location, or parcel of the Trust Land being leased, with a legal description

sufficient to meet LTRO recording requirements;

The purpose of the Lease and authorized uses of the leased premises;

The parties to the Lease;

The term and effective date of the Lease;

If applicable, identification of the responsible party for constructing, owning,

operating, and maintaining any improvements of the leased premises;

Indemnification of the United States and Lessor;

Payment requirements, including (but not limited to)

The amount of rent owed;

a.

b. Acceptable form(s) of rent;

©

The dates on which all payments are due; and

p.

Interest and late payment penalties,

Due diligence, insurance and bonding requirements as provided in this Code.

6

9. Default provisions;

10. Dispute resolution mechanisms;

11. If the demised premises are within an Indian irrigation project or drainage district,

a Lease must contain the following provision: “If the leased premises are within an

Indian irrigation project or drainage district, except as provided by 25 C.F.R. Part

271, the Lessee must pay all operation and maintenance charges that accrue during

the Lease term. The Lessee must pay these amounts to the appropriate office in

charge of the irrigation project or drainage district” and

12. ‘If historic properties, archaeological resources, human remains, or other cultural

items not previously reported are encountered during the course of any activity

associated with the Lease, all activity in the immediate vicinity of the properties,

resources, remains, or items will cease, and the Lessee will contact the Tribe to

determine how to proceed and appropriate disposition.

CHAPTER 3. BUSINESS SITE AGREEMENT REQUIREMENTS

SECTION 301. Terms and Conditions

Each Business Site Agreement shall be governed by the terms and conditions set forth in the

Business Site Agreement.

SECTION 302. Duration and Renewal

No Lease term shall be more than 25 years except that any Lease may include an option to renew

for up to two additional terms, each of which shall not exceed 25 years. If an option to renew is

provided, the Lease must specify the time and manner in which the option must be exercised or is

automatically effective (including, but not limited to, automatically effective upon commencement

of the initial Lease term), any additional consideration due upon the exercise of the option to renew

or the start of the renewal term, and any other conditions for renewal.

SECTION 303. Land Descriptions

Leases shall contain legal descriptions of the Trust Land leased thereunder based on metes and

bounds, rectangular or lot and block systems, including acreage per tract if tract lines are crossed,

and shall be sufficient for recording with the LTRO.

SECTION 304. Appraisals

1. The Fair Annual Lease Value shall be determined by an appraisal or equivalent

procedure performed by the Approving Authority utilizing the following data:

improvement cost, replacement cost, earning capacity, sales and lease date of

comparable sites or by similar methodology as approved by the Approving

Authority and deemed to be in the Best Interest of the Tribe.

7

2. Alternatively, the Fair Annual Lease Value shall be determined by an appraisal

performed by a licensed appraiser utilizing the Uniform Standards of Professional

Appraisal Practice or other commonly accepted methods of appraisal.

SECTION 305. Fair Annual Lease Value

1. A Lease constitutes Fair Annual Lease Value under conditions whereby:

a. Lessee and Lessor are equally motivated to consummate the Lease under

the particular market conditions applicable to the transaction;

b. Both parties are well-informed or well-advised, and acting in what they

consider their best interests;

A reasonable time is allowed for exposure in the open market;

d. The rent payment is made in terms of cash in United States dollars, and is

expressed as an amount per time period consistent with the payment

schedule of the Lease; and

e. The rental amount represents the normal consideration for the property

leased unaffected by special fees or concessions granted by anyone

associated with the transaction.

2. No Lease shall be approved for less than the present Fair Annual Lease Value,

except as follows, in which case no appraisal shall be required:

The Lease is in the Development Period;

The Tribe is providing an incentive for business to locate on Trust Land,

and must provide lease concessions, lease improvement credits, or lease

abatements to attract such businesses;

c. The Lease is between the Lessor, on the one hand, and a lender to a Tribal

Party, on the other hand, and the Lease payments are determined to be in

the Best Interest of the Tribe; or

d. The Lease is between the Tribe and another Tribal Party.

3, A Lease may be structured at a flat lease rate.

4, A Lease may be structured at a flat lease rate plus a percentage of gross receipts, if

the Lessee is a business located in a shopping center or mall, or the Lessee generates

over $1,000,000 in gross receipts.

5. A Lease may be structured based on a percentage of gross receipts, or based on a

market indicator.

6. A Lease must specify the dates on which all payments are due and to whom the

payments will be made.

7. Unless otherwise provided in the Lease, payments may not be made or accepted

more than one year in advance of the due date.

8

The Lease may provide for periodic review and such review may give consideration

to the economic conditions, exclusive of improvement or development required by

the Lease or the contribution value of such improvements.

9. Leases for terms of less than five years may be structured to allow for lease rate

adjustments. The Lease shall specify how adjustments will be made, who will make

such adjustments, when adjustments will go into effect, and how disputes shall be

resolved.

10. Leases may be amended to allow for lease rate adjustments.

11. If applicable, the Managing Authority shall keep written records of the basis used

in determining the Fair Annual Lease Value, as well as the basis for adjustments

and such records shall be available to the Applicant or Lessee, as applicable.

12. For avoidance of doubt, this Section 305 shall not apply to Subleases.

SECTION 306. Environmental Review Process

Unless exempted from this requirement under this Code, the Approving Authority shall not

approve a Lease until the Environmental Review Process under Chapter 8 of this Code has been

completed. Leases approved and executed without complying with this Section shall be null and

void.

SECTION 307. Bond and Insurance

1.

Subject to paragraph 2 of this Section 307, a Lessee shall obtain a Bond or Bonds

satisfactory to the Approving Authority, in an amount sufficient to secure the

contractual obligations of the Lease and to secure the following:

The annual lease payment;

b. The estimated development cost of improvements to the leased premises, if

to be performed by the Lessee;

Any additional amount necessary to ensure compliance with the Lease.

d. The operation and maintenance charges for any land within an irrigation

district.

The Approving Authority may waive the Bond requirement, or reduce the required

amount thereof, if doing so is in the Best Interest of the Tribe. The Managing

Authority shall maintain written records of waivers and reductions.

The Bond may be in one of the following forms:

a. Certificates of deposit issued by a federally insured financial institutions;

authorized to do business in the United States;

b. Irrevocable letters of credit issued by a federally insured financial institution

authorized to do business in the United States;

9

c. Negotiable Treasury securities; or

d. Surety Bonds issued by a company approved by the U.S. Bureau of Fiscal

Service.

The obligations of the Lessee and its sureties will be enforceable by the United

States so long as the land remains in Trust or Restricted Status.

The performance bond must require the surety provides advance notice to the Tribe

before cancellation of the bond.

Upon written approval by the Board of Directors, the Approving Authority may

accept an alternative form of security that provides adequate protection for the

Lessor, as determined by the Board of Directors.

If a Lease does not require insurance, unless waived by the Approving Authority

pursuant to paragraph 6 of this Section 307, a Lessee shall obtain, and maintain

throughout the term of the applicable Lease, insurance from a nationally accredited

insurance company with a financial strength rating of “A” or equivalent and

authorized to do business in the State of California. Such insurance shall:

a. Protect the interests of the Lessor and the United States, and be in amounts

sufficient to protect all insurable improvements and related property,

including property, crops, and the interests of the Tribe, and shall include

comprehensive general liability and/or casualty insurance. The insurance

must identify both the Tribe and the United States as insured parties;

b. Include, without limitation, property, liability and casualty insurance,

including, personal injury or death, business interruption coverage when

required by the Approving Authority, and such other insurance as specified

in the Lease; and

c. Expressly identify the Lessor and the United States as additional insureds.

The Approving Authority may waive the requirement for insurance if such waiver

is determined to be in the Best Interest of the Tribe. The waiver may be revoked at

any time by the Approving Authority if it is later determined to no longer be in the

Best Interest of the Tribe.

SECTION 308. Improvements

1.

Lessee, at Lessee’s expense or as otherwise provided in the applicable Lease, may

construct improvements under a Lease under the following circumstances:

a. The Lease shall specify, or provide for the development of:

i. A plan that describes the type and location of any improvements to

be built by the Lessee; and

ii. A general schedule for construction of the improvements.

10

b. The Lease shall require the Lessee to exercise diligence and use its best

efforts in prosecuting the work to completion of any improvements within

the schedule specified in the Lease.

c. Lessee shall provide the Managing Authority written justification as to the

nature of any delay, the anticipated date of construction of the

improvements, and evidence of progress toward completion of construction.

d. When requested by the Managing Authority or otherwise required in a

Lease, Lessee shall further provide the Managing Authority, in writing, an

updated schedule of construction.

e. Failure of a Lessee to comply with these requirements will be deemed a

default of the Lease and may lead to cancellation of the Lease pursuant to

Chapter 6 of this Code.

Improvements to the premises shall become the property of the Lessor unless

otherwise provided for in the Lease. If improvements will be removed, the Lease

may specify the maximum time allowed for such removal. If the Lease provides for

the Lessee to remove the improvements, it must also provide an option for the

Lessor to waive the removal requirement and take possession of the improvements

if they are not removed within the specified time period provided therein. The Lease

must also include a provision that any permanent improvements must be left in a

condition satisfactory to the Tribe.

A Lessee may develop Equity in the improvements and, to the extent provided in

the applicable Lease, may sell its interest in the Lease based on such Equity. The

Lessor has a right of first refusal to purchase such interest.

A Lease may provide that, at the time of expiration or cancellation, the Lessor shall

purchase improvements to the premises at the fair market value thereof.

Improvements may be subject to taxation by the Tribe as provided by Tribal Law,

unless otherwise agreed to in a Business Site Agreement.

SECTION 309. Subleases, Assignments, Amendments and Leasehold Mortgages

1.

Subleases, Assignments and Leasehold Mortgages and any amendments to the

foregoing (including any amendment and restatement thereof) shall be subject to

written approval of the Approving Authority unless otherwise provided herein and,

if the Lessor is a party thereto, the execution and delivery by the Executing Official.

Leases may authorize Subleases and Assignments, in whole or in part, without

approval from the Approving Authority and execution from the Executing Official,

so long as a copy of the Sublease or Assignment is provided to the Approving

Authority within 30 days after execution and the following conditions, where

applicable, are stated and satisfied in the Lease:

a. There is no default under the Lease or violation of this Code;

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b. Any restrictions and use limitations respecting the use of the leased

premises shall continue to apply to any Sublessee or assignee;

c. The proposed Sublessee or assignee submits current financial statements

showing financial adequacy;

d. The assignee agrees in writing to assume all of the obligations and

conditions of the Lease; and

e. In the case of a Sublease, the Sublessor under such Sublease shall not be

relieved or released from any of its obligations as Lessee under the

applicable Lease.

Nothing in this Section 309.2 shall relieve the parties from carrying out their

respective obligations under a Lease, which may contain additional restrictions and

conditions.

A Lease may authorize Leasehold Mortgages for the purpose of securing financing

to develop, improve and/or operate the applicable premises, subject to the prior

written approval by the Approving Authority. A mortgage, deed of trust, or other

instrument that encumbers a Sublessee’s interest under a Sublease shall not require

approval of the Approving Authority unless otherwise provided in the applicable

Lease. An encumbrance of the beneficial interest of the Tribe or the fee interest of

the United States in the Trust Land is prohibited as a matter of federal law and shall

not be approved by the Approving Authority.

A Leasehold Mortgage for the purpose of securing third-party financing provided

to a Lessee may include provisions providing the Leasehold Mortgagee with a right

to exclusive possession and occupancy of the applicable premises upon default

under the financing documents, without need for commencement of foreclosure

proceedings under Tribal or state law.

If a Leasehold Mortgagee’s right to exclusive possession and occupancy of the

applicable premises upon default under the financing documents occurs, or if a sale

or foreclosure of the Lessee’s leasehold interest under a Lease occurs, and:

a. The Leasehold Mortgagee is also the purchaser, it may assign the Lease

without approval of the Approving Authority, provided the assignee agrees,

in writing, to be bound by all the terms and conditions of the Lease;

b. The Leasehold Mortgagee is also the purchaser, it may sublease the

leasehold interest under a Lease without the approval of the Approving

Authority, provided the Leasehold Mortgagee agrees, in writing, to be

bound by all the terms and conditions of the Lease;

c. If the purchaser is a party other than the Leasehold Mortgagee, approval by

the Approving Authority will be required before a Lease can be so assigned

or subleased, and the purchaser shall agree, in writing, to be bound by all

terms and conditions of the Lease; or

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d. Without a sale or foreclosure of the leasehold interest, the Leasehold

Mortgagee may take possession of the leasehold interest without approval

of the Approving Authority.

SECTION 310. Indemnification. A Lease must contain the following provisions:

1.

The Lessee holds the United States and the Lessor harmless from any loss, liability,

or damages resulting from the Lessee’s use or occupation of the leased premises.

The Lessee indemnifies the United States and the Lessor against all liabilities or

costs relating to the use, handling, treatment, removal, storage, transportation, or

disposal of hazardous materials, or the release or discharge of any hazardous

materials from the leased premises that occurs during the Lease term, regardless of

fault, with the exception the Lessee is not required to indemnify the Lessor for

liability or cost arising from the Lessor’s negligence or willful misconduct.

CHAPTER 4. RECORDS

SECTION 401. Records

1.

The Approving Authority shall record Leases, Subleases, Assignments, Leasehold

Mortgages and any renewals or amendments (including any amendment and

restatement) and cancellations of any of the foregoing with:

Land Title and Records Office

Pacific Regional Office

Bureau of Indian Affairs

2800 Cottage Way

Sacramento, CA 95825

The Managing Authority is responsible for maintaining a copy of all recorded

documents, and for disseminating copies of same to the Board of Directors, the

Tribal Department of Public Works, and if required by the Lease, the Tribal

Housing Department.

For a Lease or Sublease that provides for rental payment directly to the Tribe, the

Tribe shall provide documentation of the Lease or Sublease payments to the

Superintendent of the Central California Agency of the BIA that are sufficient to

enable the Secretary to discharge the trust responsibility of the United States.

The Approving Authority shall send a copy of all recorded documents for

information only to:

Superintendent

Central California Agency

Bureau of Indian Affairs

650 Capitol Mall, Suite 8-500

Sacramento, CA 95814.

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