Bay Mills Indian Community Laws and Codes

SECURED TRANSACTIONS ORDINANCE

of the BAY MILLS INDIAN COMMUNITY

Relating to Security Interests Granted by the Tribe and Tribally-Controlled Entities in Personal Property

Section 1. Purpose.

The purpose of this ordinance is to provide a mechanism for the creation and perfection of security interests in personal property owned by the Tribe or its entities in those circumstances in which such personal property, whether tangible or intangible serves as security for obligations of the Tribe or entities controlled by the Tribe.

Section 2. Authority to Grant Security Interests.

The Executive Council, on behalf of the Bay Mills Indian Community, and the governing body of any corporation, commission, authority, agency or other entity owned or controlled by the Bay Mills Indian Community which is empowered by its charter or other tribal ordinance to borrow funds, on behalf of any such entity, are authorized and empowered to review and approve the form or forms of any note, security agreement, financing statement or other instrument evidencing, securing or relating to any contract, loan or extension of credit made with, to, or for the benefit of the Tribe or an entity controlled by the Tribe, respectively, as such may relate to a transaction which is secure in whole or in part by any personal property of the Tribe or such entity.

Section 3. Form for Security Interest Grant.

A written resolution of the Executive Council or such other governing body approving the form of any instrument creating a security interest in personal property of the Tribe or an entity controlled by the Tribe, which is certified by the Secretary or other appropriate official as having been duly adopted, shall be conclusive evidence of such approval, and any form so approved shall be an "Approved Loan Document" for purposes of this ordinance.

Section 4. Enforceability of Approved Loan Document.

Upon proper authorization, execution and delivery of any Approved Loan Document, such Approved Loan Document shall be valid, binding and enforceable in the Bay Mills Indian Community Tribal Court in accordance with its terms.

Section 5. Governing Law.

Article 9 of the Uniform Commercial Code, as enacted in the State of Michigan, MCL sec. 440.9101, et seq., as the same shall be amended from time to time, shall govern with respect to the priority and enforcement of any security interest in personal property granted by the Tribe or any tribally-controlled entity as to personal property directly utilized in the activity which is the subject of the Approved Loan Document; provided that the provisions of Section 9-104(e) of the Uniform Commercial Code [which appears as MCL sec. 440.9104(e)] shall not apply.

Section 6. Remedies.

Except as limited by the terms of any agreement between the parties, the secure party and its successors and assigns shall be entitled to exercise any remedy available under the laws of the Bay Mills Indian Community and in MCL sec. 440.9501 through 440.9507, in the event of a default by the debtor under any security agreement which is subject to this ordinance.

Section 7. Recording.

1. Locations of Records. The Clerk of Tribal Court shall maintain in the Tribal Court a system for the recording of security interests.
2. Recording Identification. The Clerk of Tribal Court shall endorse upon any security agreement or other document received for recording:
1. the date and time of receipt of the security agreement or other document;
2. the filing number, as assigned by the Clerk, which shall be a unique number for each security agreement or other document received; and
3. the name of the Clerk of Tribal Court receiving the document for recording.
3. Certification of Record by Clerk. Upon completion of the endorsements specified in subs.(b), above, the Clerk of Tribal Court shall make a true and correct copy of the security agreement or other document, and shall certify the copy as constituting a true and correct copy of a document received for recording on a specific date.
4. Copy of a Recorded Document. The Clerk of Tribal Court shall maintain a copy in the records of the recording system and shall return the original of the security agreement or other document to the person or entity that presented such for recording.

Section 8. Jurisdiction.

The Tribal Court may adjudicate any action by a secured party pursuant to this ordinance, pursuant to the provisions of Chapter IV of the Tribal Code. The Tribal Court shall i’ve full faith and credit to any final order or judgment of any other court of competent jurisdiction in any such action, and shall enjoin any person from interfering with the execution or carrying out of any such order or judgment.

Section 9. Effect of Amendment of Repeal.

No amendment or repeal of this ordinance shall be effective with respect to any security interest that is

1. subject to the terms of this ordinance when perfected, and
2. existing at the time of such amendment or repeal.

Back to Top