[History: GTB Secured Transactions Ordinance, enacted by Tribal Council on May 12, 1998, as amended by Tribal Act #98-16.668, enacted by Tribal Council on January 16, 1999.]
This Ordinance shall be known as the GTB Secured Transactions Ordinance. The central purpose of this Ordinance is to facilitate the conducting of secured transactions where the property or instrument - financial or otherwise - Is subject to the expressed or implied limitations of Indian trust status, either by federal or tribal law, in the property or instruments disposition as a security interest.
[History: GTB Secured Transactions Ordinance, enacted by Tribal Council on May 12, 1998, as amended by Tribal Act #98-16.668, enacted by Tribal Council on January 16, 1999.]
(a) 
Except as otherwise provided by § 104 on excluded transactions, this Ordinance applies to:
(1) 
Any transaction (regardless of form) which is intended to create a security interest in personal property or fixtures, including goods, documents, instruments or accounts.
(b) 
This Ordinance applies to security interests created by contract, including pledge, conditional sale other lien or title retention contract and lease or consignment intended as security.
[History: GTB Secured Transactions Ordinance, enacted by Tribal Council on May 12, 1998, as amended by Tribal Act #98-16.668, enacted by Tribal Council on January 16, 1999.]
(a) 
Documents, Instruments and Ordinary Goods.
(1) 
This subsection applies to documents and instruments and to goods other than those covered by a certificate of title described in subsection (b).
(2) 
Except as otherwise provided in the subsection, perfection and the effect of perfection or non-perfection of a security interest in collateral are governed by the law of the jurisdiction where the collateral is when the last event occurs on which is based the assertion that the security interest is perfected or unperfected.
(3) 
If the parties to a transaction creating a purchase money security interest in goods in one jurisdiction understand at the time that the security interest attaches that the goods will be kept in another jurisdiction, then the law of the other jurisdiction governs the perfection and the effect of perfection or non-perfection of the security interest form the time it attaches until 30 days after the debtor receives possession of the goods and thereafter if the goods are taken to the other jurisdiction before the end of the thirty-day period.
(4) 
When collateral is brought into and kept on GTB Indian Country (which includes reservation and GTB trust lands), while subject to a security interest perfected under the law of the jurisdiction from which the collateral was removed, the security interest remains perfected under the law of that jurisdiction.
(b) 
Certificate of Title.
(1) 
This subsection applies to goods covered by a certificate of title issued under GTB law or under a statute of another jurisdiction under the law of which indication of a security interest on the certificate is required as a condition of perfection.
(2) 
Except as otherwise provided in this subsection (b), perfection and the effect of perfection or non-perfection of the security interest are governed by the law (including the conflict of law rules) of the jurisdiction issuing the certificate.
(3) 
Except with respect to the rights of a buyer described in the next paragraph (4), a security interest perfected in another jurisdiction otherwise than by notation on a certificate of title in goods brought into GTB Indian Country, and thereafter covered by a certificate of title issued under GTB law, is subject to the rules stated in subsection (a)(4).
(4) 
If goods are brought into GTB Indian Country while a security interest therein is perfected in any manner under the law of the jurisdiction from which the goods are removed and a certificate of title is issued under GTB law and the certificate does not show that the goods are subject to the security interest or that they may be subject to security interests not shown on the certificate, the security interest is subordinate to the rights of a buyer of the goods who is not in the business of selling goods of that kind to the extent that he gives value and receives delivery of the goods after issuance of the certificate and without knowledge of the security interest.
(5) 
Unless and until the GTB Tribal Council adopts laws creating a system for the issuance of certificates of title for such goods, perfection of security interests in vehicles, boats and other goods registered under the certificate of title laws of a state of the United States or other jurisdiction shall be governed by such laws.
(c) 
Accounts, General Intangibles and Mobile Goods.
(1) 
This subsection (c) applies to accounts and general intangibles (other than uncertificated securities) and to goods which are mobile and which are of a type normally used in more than one jurisdiction, such as motor vehicles, trailers, boats, rolling stock, shipping containers, road building and construction machinery and commercial harvesting machinery and the like, if the goods are equipment or are inventory leased or held for lease by the debtor to others, and are not covered by a certificate of title described in subsection (b).
(2) 
The law (including the conflict of laws rule) of the jurisdiction in which the debtor is located governs the perfection and the effect of perfection or non-perfection of the security interest.
(3) 
A debtor shall be deemed located at his place of business if he has one, at his chief executive office if he has more than one place of business, otherwise at his residence.
(4) 
A security interest perfected under the law of the jurisdiction of the location of the debtor is perfected until the expiration of four months after a change of the debtor's location to another jurisdiction, or until perfection would have ceased by the law of the first jurisdiction, whichever period first expires. Unless perfected in the new jurisdiction before the end of that period, it becomes unperfected thereafter and is deemed to have been unperfected as against a person who became a purchaser after the change.
[History: GTB Secured Transactions Ordinance, enacted by Tribal Council on May 12, 1998, as amended by Tribal Act #98-16.668, enacted by Tribal Council on January 16, 1999.]
(a) 
This Ordinance does not apply:
(1) 
To a security interest subject to any statute of the United States, to the extent that such statute governs the rights of parties to, and third parties affected by, transactions in particular types of property; or
(2) 
To a landlord's lien; or
(3) 
To a lien given by statute or other rule of law for services or materials except as provided in § 107 on priority of such liens; or
(4) 
To a transfer of a claim for wages, salary or other compensation of an employee; or
(5) 
To a transfer by a government or governmental subdivision, official or agency except to the extent that such entity has made an effective waiver of its sovereign immunity in accordance with GTB law; or
(6) 
To a right represented by a judgment (other than a judgment taken on a right to payment which was collateral); or
(7) 
To any right of set-off; or
(8) 
Except to the extent that provision is made for fixtures in § 110, to the creation or transfer of an interest in or lien on real estate, including a lease or rents thereunder or to any property held in trust; or
(9) 
To a transfer in whole or in part of any claim arising out of tort.
[History: GTB Secured Transactions Ordinance, enacted by Tribal Council on May 12, 1998, as amended by Tribal Act #98-16.668, enacted by Tribal Council on January 16, 1999.]
For purposes of this Ordinance, any description of personal property or real estate is sufficient, whether or not it is specific, if it reasonably identifies what is described.
[History: GTB Secured Transactions Ordinance, enacted by Tribal Council on May 12, 1998, as amended by Tribal Act #98-16.668, enacted by Tribal Council on January 16, 1999.]
(a) 
Except as otherwise provided by applicable law, a security agreement is effective according to its terms between the parties, against purchasers of the collateral and against creditors.
(b) 
Nothing in this article validates any charge or practice illegal under any statute or regulation thereunder governing usury, small loans, retail installment sales, consumer protection, or the like, or extends the application of any such statute or regulation to any transaction not otherwise subject thereto.
[History: GTB Secured Transactions Ordinance, enacted by Tribal Council on May 12, 1998, as amended by Tribal Act #98-16.668, enacted by Tribal Council on January 16, 1999.]
(a) 
A security interest is not enforceable against the debtor or third parties with respect to the collateral and does not attach unless:
(1) 
The collateral is in the possession of the secured party pursuant to an agreement, or the debtor has signed a security agreement which contains a description of the collateral and in addition, when the security interest covers crops growing or to be grown or timber to be cut, a description of the land concerned;
(2) 
Value has been given; and
(3) 
The debtor has rights in the collateral.
(b) 
A security interest attaches when it becomes enforceable against the debtor with respect to the collateral. Attachment occurs as soon as all of the events specified in subsection (a) have taken place unless explicit agreement postpones the time of attaching.
(a) 
A financing statement must be filed to perfect all security interests except the following:
(1) 
A security interest in collateral in possession of the secured party;
(2) 
A security interest temporarily perfected in instruments or documents without delivery;
(3) 
A security interest created by an assignment of a beneficial interest in a trust or a decedent's estate;
(4) 
A purchase money security interest in consumer goods; and
(5) 
An assignment of accounts.
(b) 
If a secured party assigns a perfected security interest, no filing under this Ordinance is required in order to continue the perfected status of the security interest against creditors of and transferees from the original debtor.
[History: GTB Secured Transactions Ordinance, enacted by Tribal Council on May 12, 1998, as amended by Tribal Act #98-16.668, enacted by Tribal Council on January 16, 1999.]
[History: GTB Secured Transactions Ordinance, enacted by Tribal Council on May 12, 1998, as amended by Tribal Act #98-16.668, enacted by Tribal Council on January 16, 1999.]
(a) 
A security interest in chattel paper or negotiable documents may be perfected by filing. A security interest in money or instruments can be perfected only by the secured party's taking possession.
(b) 
A secured party shall notify the Tribal Police prior to taking possession. Lack of actual notification shall nullify the rights of the secured party.
[History: GTB Secured Transactions Ordinance, enacted by Tribal Council on May 12, 1998; as amended by Tribal Act #98-16.668, enacted by Tribal Council on January 16, 1999; as amended by Tribal Act #03-21.1215, enacted by Tribal Council on March 19, 2003.]
(a) 
In all secured transactions, the proper place to file in order to perfect a security interest is the Legal Department of the Grand Traverse Band of Ottawa and Chippewa Indians.
(b) 
A filing which is made in good faith in an improper place or not in all of the places required by this section is nevertheless effective with regard to any collateral as to which the filing complied with the requirements of this article and is also effective with regard to collateral covered by the financing statement against any person who has knowledge of the contents of such financing statement.
[History: GTB Secured Transactions Ordinance, enacted by Tribal Council on May 12, 1998, as amended by Tribal Act #98-16.668, enacted by Tribal Council on January 16, 1999.]
All perfected statements shall be terminated by Tribal Court order consistent with the generally accepted practices of perfected security interest termination procedures as recognized by general commercial practices.
[History: GTB Secured Transactions Ordinance, enacted by Tribal Council on May 12, 1998, as amended by Tribal Act #98-16.668, enacted by Tribal Council on January 16, 1999.]
(a) 
When so agreed in a conspicuous manner, in writing and on default, the secured party is entitled to notify an account debtor to make payment to the secured party directly.
(b) 
The secured party may perfect peaceful repossession with the consent of the account debtor.
(c) 
Absent the consent of the account debtor, in writing, the secured party must seek a Tribal Court order to assert collection rights.
(d) 
All repossessions shall only be implemented after the Tribal Police have actually been notified by the secured party.