The Menominee Tribe enacts this Tribal Mortgage Lending Ordinance
("this article") for the purpose of encouraging home ownership on
trust or restricted lands within the Tribe's jurisdiction by
members of the Tribe. This article is intended, and shall be construed,
to provide prompt and effective remedies to lenders upon default of
any loan secured by a mortgage on a Tribal member's interest
in a lease on trust or restricted lands while at the same time protecting
the rights of members by providing due process and permitting the
recovery of the member's equity and protecting the sovereignty
of the Tribe by assuring the Tribe's right to prevent alienation
of trust lands to anyone other than a member of the Tribe.
Article
III shall apply to the Wisconsin Housing and Economic Development Authority (WHEDA) Home Mortgage Program, Home Plus Program and such other WHEDA programs as may be approved by tribal law, resolution or ordinance.
At any time after a default, the mortgagor may enter into a
written assignment of leasehold interest in lieu of foreclosure, subject
to the following provisions:
A. Thirty days shall have expired after the mortgagee has given the
Tribe written notice of the lessor's option and the Tribe, as
lessor, has not exercised the same.
B. The assignment shall contain the mortgagor's warranty that the
mortgagor, in good faith, believes that the value of the leasehold
interest is equal to or less than the amount currently due, or to
become due after a foreclosure, under the mortgage and the mortgagee
shall release the mortgagor from the obligation to repay the note.
The mortgagee may petition the Tribal Court to appoint a receiver,
who shall be the Tribe unless otherwise agreed to by the mortgagee
and the Tribe, to receive title to the leasehold interest and to liquidate
it in accordance with the provisions of this article. Such petition
shall include a copy of the assignment and shall be served on the
mortgagor and the Tribe. The order appointing the receiver shall assign
the leasehold interest to the receiver, with a right to sell the leasehold
interest at private sale or rent the leased premises subject to the
same conditions as provided in this article for a foreclosure.