[History: Tribal Act #96-14.319, enacted by Tribal Council on February 20, 1996; as amended by Tribal Act #96-14.375, enacted by Tribal Council on July 2, 1996; amended by Tribal Act #01-19.1065, enacted by Tribal Council in Special Session on October 10, 2001; and amended by Tribal Act #08-26.1905, enacted by Tribal Council on April 30, 2008.]
(a) 
The purpose of this ordinance is to assist Tribal members in obtaining mortgage financing for the purchase of one-family, owner-occupied principal residences on certain leasehold estates located upon Tribal trust lands, by prescribing procedures relating to recordation, foreclosure and evictions in connection with leasehold mortgages given to secure loans made by mortgagees pursuant to: the Section 184 Housing Loan Guarantee Program administered by the U.S. Department of Housing and Urban Development (HUD); the direct loan program administered by the U.S. Department of Veterans' Affairs (VA) under 38 U.S.C. § 3761; the similar program administered by the Rural Economic and Community Development Service of the U.S. Department of Agriculture; the Native American Housing Pilot Initiative (the "Initiative") offered by the Federal National Mortgage Association ("Fannie Mae"); financing offered by the Federal Home Loan Mortgage Corporation ("Freddie Mac"); and/or other conventional lending programs. In order to facilitate the purpose of these programs, this ordinance authorizes a limited waiver of sovereign immunity by the Tribe with respect to all controversies or claims arising out of, or relating to, the leasehold mortgage agreements and the leases described herein.
(b) 
In addition, Tribal members, in seeking mortgage financing for the purchase of one-family, owner-occupied principal residences on certain leasehold estates located upon Tribal trust lands, cannot use the value of the trust property, which by definition is owned by the United States in trust for the tribe and cannot be sold, pledged, mortgaged, or otherwise encumbered without an Act of Congress, in the appraisal process that is typically used by banks or other real estate agents.
[History: Tribal Act #96-14.319, enacted by Tribal Council on February 20, 1996; and as amended by Tribal Act #96-14.375, enacted by Tribal Council on July 2, 1996.]
(a) 
"Lease" shall mean the residential ground lease or other agreement for use of Tribal trust land on which a leasehold mortgage has or will be given.
(b) 
"Leasehold Estate" shall mean a leasehold estate established pursuant to a lease between the Tribe, as lessor, and a member of the Tribe, as tenant.
(c) 
"Leasehold Mortgage" shall mean the first-lien mortgage of a leasehold estate given to secure a mortgage loan made by a mortgage pursuant to the HUD 184 program, the VA and RECD programs, and/or Fannie Mae's Initiative.
(d) 
"Leasehold Mortgage Foreclosure Proceeding" shall mean a proceeding in the Tribal Court (i) to foreclose the interest of the mortgagor(s), and each person or entity claiming through the mortgagor(s), in a leasehold estate on which a leasehold mortgage has been made by the mortgage pursuant to the HUD 184 program, the VA and RECD programs, and/or Fannie Mae's Initiative; and/or (ii) to assign such leasehold estate to the mortgagee or the mortgagee's successors or assigns.
(e) 
"Lessor" shall mean the Tribe. The Tribe shall be the beneficial or equitable owner of certain Tribal trust land underlying a leasehold estate on which a leasehold mortgage has been given. The lessor shall include the successor(s) or assign(s) of such lessor.
(f) 
"Leasehold Mortgage Agreement" shall mean that certain agreement indicating participation by the mortgagor(s) in one of the federal mortgage loan guarantee programs to the mortgagee and the Tribe, and approved by the Secretary of the Interior.
(g) 
"Mortgagor" shall mean any member of the Tribe who has executed a leasehold mortgage, including any heir(s), successor(s), executor(s), administrator(s) or assign(s) of such member.
(h) 
"Mortgagee" shall mean the approved lender under any leasehold mortgage made pursuant to the leasehold mortgage agreement. This definition also includes, without any consent by Tribe, any subsequent holder, whether by assignment, succession or otherwise, of the original mortgagee's right, title or interest in and to the leasehold mortgage and/or the leasehold estate.
(i) 
"Nuisance" shall mean maintenance on the leasehold estate of a condition which:
(1) 
Unreasonably threatens the health or safety of the public or neighboring land users; or
(2) 
Unreasonably and substantially interferes with the ability of neighboring real property users to enjoy the reasonable use and occupancy of their property.
(j) 
"Subordinate Lienholder" shall mean the holder of any lien, including a mortgage, perfected subsequent to the recording of a leasehold mortgage under this ordinance; provided, however, such terms shall not include the Tribe with respect to a claim for a Tribal leasehold tax.
(k) 
"Tenant" shall mean any person who occupies Tribal trust land under a leasehold estate.
(l) 
"Tribal Court" shall mean the Tribal Court of the Grand Traverse Band of Ottawa Indians.
(m) 
"Tribal Recording Clerk" shall mean the person designated by the Tribe to perform the recording functions required by this document or any deputy or designee of such person.
(n) 
"Tribe" shall mean the Grand Traverse Band of Ottawa and Chippewa Indians.
(o) 
"Tribal Trust Lands" shall mean land, title to which is held by the United States of America in trust for the Tribe and/or which may be subject to a restriction against alienation imposed by federal treaty, statute or Executive Order.
(p) 
"Unlawful Detainer Action" shall be a suit brought before the Tribal Court to terminate a tenant's interest in a leasehold estate and/or to evict any person from occupancy of such leasehold estate.
(q) 
"Waste" shall mean spoil or destruction of land, buildings, gardens, trees or other improvements on the leasehold estate which result in substantial injury to the lessor's interest in the leasehold estate.
(r) 
"Writ of Restitution" is an order of the Tribal Court:
(1) 
Restoring an owner, lessor, mortgagee (or other successor in interest) to possession of a leasehold estate subject to a leasehold mortgage; and
(2) 
Evicting a tenant or other occupant from such property.
[History: Tribal Act #96-14.319, enacted by Tribal Council on February 20, 1996; and as amended by Tribal Act #96-14.375, enacted by Tribal Council on July 2, 1996.]
A leasehold mortgage recorded in accordance with the recording procedures set forth in this ordinance shall have priority over any lien not perfected at the time of such recording and any subsequent lien or claim (except a lien or claim arising from a Tribal tax assessed against a leasehold estate subject to the leasehold mortgage).
[History: Tribal Act #96-14.319, enacted by Tribal Council on February 20, 1996; and as amended by Tribal Act #96-14.375, enacted by Tribal Council on July 2, 1996.]
(a) 
The Tribe recognizes that the appropriate offices for recording leases and leasehold mortgages is the Bureau of Indian Affairs Area Land Titles and Records Office in addition to the Tribal Court, and the Tribe agrees that the agreement shall require that the leases and leasehold mortgages shall also be recorded in the county recorder's office in the Michigan county in which the leasehold estates are located.
(b) 
The Tribal Recording Clerk shall maintain in the Tribal Court, or other designated office, a system for the recording of leasehold mortgages and such other documents as the Tribe may designate by law or resolution including, without limitation, the lease.
(c) 
The Tribal Recording Clerk shall endorse upon any lease and leasehold mortgage or other document received for recording the following:
(1) 
The date and time of receipt of the lease and the leasehold mortgage or other document;
(2) 
The filing number, to be assigned by the Tribal Recording Clerk, which shall be a unique number for each lease and leasehold mortgage or other document received; and
(3) 
The name of the Tribal Recording Clerk receiving the lease and leasehold mortgage or other document.
Upon completion of the above endorsements, the Tribal Recording Clerk shall make true and correct copies of the lease and leasehold mortgage or other security instrument and shall certify each copy as follows:
Grand Traverse Band of Ottawa and Chippewa Indians: ss.
I certify that this is a true and correct copy of a document received for recording. Given under my hand and seal this _____ day of _____.
(SEAL)
Signature
Title
The Tribal Recording Clerk shall maintain such copies in the records of the recording system and shall return the original lease and leasehold mortgage or other document to the person or entity that presented the same for recording.
(d) 
The Tribal Recording Clerk shall also maintain a log of each lease and leasehold mortgage or other document recorded in which there shall be entered the following:
(1) 
The name(s) of the mortgagor(s) of each leasehold mortgage, identified as such;
(2) 
The name(s) of the mortgagee(s) of each leasehold mortgage, identified as such;
(3) 
The name(s) of the grantor(s), grantee(s), or other designation of each party named in any other documents including the lease;
(4) 
The date and time of receipt;
(5) 
The filing numbers assigned by the Tribal Recording Clerk; and
(6) 
The name of the Tribal Recording Clerk receiving the lease, leasehold mortgage or other document.
(e) 
The certified copies of the leases and leasehold mortgages and other documents and the log maintained by the Tribal Recording Clerk shall be made available for public inspection and copying.
[History: Tribal Act #96-14.319, enacted by Tribal Council on February 20, 1996; and as amended by Tribal Act #96-14.375, enacted by Tribal Council on July 2, 1996.]
Upon the default of the mortgagor(s), and upon expiration of any applicable cure periods under a leasehold mortgage, the mortgagee or its successors and assigns, may commence a leasehold mortgage foreclosure proceeding in the Tribal Court as follows:
(a) 
By filing a verified complaint:
(1) 
Citing authority for jurisdiction of the Tribal Court;
(2) 
Naming the mortgagor(s) and each record owner claiming through the mortgagor(s) subsequent to the recording of the leasehold mortgage, including each subordinate lienholder (except the Tribe with respect to a claim for a Tribal tax on the leasehold estate subject to the leasehold mortgage), as a defendant;
(3) 
Describing the leasehold estate subject to the leasehold mortgage;
(4) 
Stating the facts concerning:
(A) 
The execution of the lease and the leasehold mortgage;
(B) 
The recording of the leasehold mortgage; and
(C) 
The alleged default(s) of the mortgagor(s) and any other facts as may be necessary to constitute a cause of action;
(5) 
Having appended as exhibits true and correct copies of each promissory note, lease, leasehold mortgage, and, if applicable, assignment thereof relating to such leasehold estate;
(6) 
Including an allegation that all relevant requirements and conditions prescribed in the federal mortgage loan guarantee program and/or leasehold mortgage agreement and the lease have been complied with by the mortgagee or its successors or assigns; and
(7) 
Otherwise satisfying the requirements of the Tribal Court.
(b) 
By obtaining a summons, issued as in other cases, requiring the mortgagor(s) and each other person or entity claiming through the mortgagor, as defendants, to appear for a trial upon the complaint on a date and time specified in the summons, and filing a copy of such summons with the Tribal Court.
[History: Tribal Act #96-14.319, enacted by Tribal Council on February 20, 1996; and as amended by Tribal Act #96-14.375, enacted by Tribal Council on July 2, 1996.]
The laws of the Tribe governing service of process and all other matters relating to the conduct of Tribal Court proceedings shall apply to any leasehold mortgage foreclosure proceeding pursuant to this ordinance.
[History: Tribal Act #96-14.319, enacted by Tribal Council on February 20, 1996; and as amended by Tribal Act #96-14.375, enacted by Tribal Council on July 2, 1996.]
(a) 
Prior to the entry of a judgment of foreclosure of a leasehold mortgage pursuant to this ordinance, any mortgagor or any subordinate lienholder may cure the default(s) under the leasehold mortgage.
(b) 
Any subordinate payments made by such subordinate lienholder to cure such default(s) must comply with the terms of the mortgage, plus interest on such amounts at the rate stated in the promissory note evidencing the subordinate lien.
[History: Tribal Act #96-14.319, enacted by Tribal Council on February 20, 1996; and as amended by Tribal Act #96-14.375, enacted by Tribal Council on July 2, 1996.]
If the alleged default(s) have not been cured, and if the Tribal Court should find for the mortgagee or its successors or assigns, the Tribal Court shall enter judgment:
(a) 
Foreclosing the leasehold estate of the mortgagor(s) and each other defendant named in the complaint upon whom proper and timely service has been made, including each such subordinate lienholder; and
(b) 
Assigning such leasehold estate to the mortgagee or the mortgagee's assignee, including Fannie Mae.