Section 2711 Management Contracts
n Requirements for Chairman’s approval
1. Adequate accounting procedures 2. Access for appropriate tribal officials to daily operations 3. Minimum guaranteed payment to the tribe
4. Agreed ceiling for the repayment of development & construction costs 5. Terms not to exceed 5 years (in some cases 7 years) 6. Grounds and mechanisms for terminating the contract
Fee Based on Percentage of Net Revenues
• Contracts with a fee based upon a percentage of the net revenue are acceptable if the fee is reasonable in light of surrounding circumstances. Such fee shall not exceed 30 percent. • Upon request of a tribe, the Chairman may approve a contract with a fee that exceeds 30 percent but not 40 percent.
Homer Law, Chtd. 2006
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