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Minnesota Chippewa Tribe - Leech Lake Band - Tribal Code

 

Title 9. Secured Transactions Ordinance
Chapter 2. Effectiveness, Attachment and Rights of Parties

TITLE 9-201. GENERAL EFFECTIVENESS OF SECURITY AGREEMENT
TITLE 9-202. ATTACHMENT AND ENFORCEABILITY OF SECURITY INTEREST; PROCEEDS; FORMAL REQUISITES
TITLE 9-203. AFTER-ACQUIRED COLLATERAL; FUTURE ADVANCES
TITLE 9-204. RIGHTS AND DUTIES WHEN COLLATERAL IS IN SECURED PARTYS POSSESSION OR CONTROL
TITLE 9-205. ADDITIONAL DUTIES OF CERTAIN SECURED PARTIES
TITLE 9-206. [RESERVED.]
TITLE 9-207. REQUEST FOR ACCOUNTING; REQUEST REGARDING LIST OF COLLATERAL OR STATEMENT OF ACCOUNT

LLOjibwe JCT9 STO § 9-201
9-201. General Effectiveness of Security Agreement

(a) General effectiveness. Except as otherwise provided in this ordinance or other applicable law, a security agreement is effective according to its terms between the parties, against purchasers of the collateral, and against creditors.

(b) Applicable consumer laws and other law. A transaction subject to this ordinance is subject to any applicable rule of law which establishes a different rule for consumers and

(1) any other applicable tribal, federal or state statute or regulation that regulates the rates, charges, agreements, and practices for loans, credit sales, or other extensions of credit; and

(2) any consumer-protection statute or regulation.

(c) Other applicable law controls. In case of conflict between this ordinance and a rule of law, statute, or regulation described in subsection (b), the rule of law, statute, or regulation prevails.

Effective July 1, 2010.

Leech Lake Ojibwe Jud. Code, T. 9, Sec. Trans. Ord. § 9-201, LLOjibwe JCT9 STO § 9-201



LLOjibwe JCT9 STO § 9-202
9-202. Attachment and Enforceability of Security Interest; Proceeds; Formal Requisites

(a) Attachment. A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postpones the time of attachment.

(b) Enforceability. Except as otherwise provided in subsections (c) through (g), a security interest is enforceable against the debtor and third parties with respect to the collateral only if:

(1) value has been given;

(2) the debtor has rights in the collateral or the power to transfer rights in the collateral to a secured party; and

(3) one of the following conditions is met:

(A) the debtor has signed a security agreement that provides a description of the collateral and, if the security interest covers timber to be cut, a description of the land concerned;

(B) the collateral is in the possession of the secured party pursuant to the debtor's security agreement and this ordinance; or

(C) the collateral is a security or an investment account and the secured party has control pursuant to the debtor's security agreement.

(c) Other applicable law. Subsection (b) is subject to a collecting bank's interest in items under applicable law or agreement, any recognized security interest of a letter-of-credit issuer or nominated person under applicable law or agreement, a security interest arising under recognized sales and leases law, and a security interest in a security or in an investment account arising due to the purchase or delivery of the financial asset.

(d) Proceeds. The attachment of a security interest in collateral gives the secured party the rights to proceeds provided by this ordinance.

(e) Lien securing right to payment. The attachment of a security interest in a right to payment or performance secured by a security interest, mortgage or other lien on personal or real property is also attachment of a security interest in the security interest, mortgage, or other lien.

(f) Certain items credited to investment account. The attachment of a security interest in an investment account is also attachment of a security interest in any securities or commodity contracts credited to the investment account.

(g) Whether other persons bound. Law other than this ordinance determines when and if another person becomes bound by a security agreement entered into by a debtor.

Effective July 1, 2010.

Leech Lake Ojibwe Jud. Code, T. 9, Sec. Trans. Ord. § 9-202, LLOjibwe JCT9 STO § 9-202




LLOjibwe JCT9 STO § 9-203
9-203. After-Acquired Collateral; Future Advances

(a) After-acquired collateral. Except as otherwise provided in subsection (b), a security agreement may create or provide for a security interest in after-acquired collateral.

(b) After-acquired property clause not effective. A security interest does not attach under a term constituting an after-acquired property clause to:

(1) consumer goods, other than an accession when given as additional security, unless the debtor acquires rights in them within ten (10) days after the secured party gives value; or

(2) a commercial tort claim.

(c) Future advances. A security agreement may provide that collateral secures or that accounts, chattel paper, or payment intangibles are sold in connection with future advances or other value, whether or not the advances or value are given pursuant to commitment.

Effective July 1, 2010.

Leech Lake Ojibwe Jud. Code, T. 9, Sec. Trans. Ord. § 9-203, LLOjibwe JCT9 STO § 9-203




LLOjibwe JCT9 STO § 9-204
9-204. Rights and Duties When Collateral is in Secured Party's Possession or Control

(a) Duty of care when secured party in possession. A secured party shall use reasonable care in the custody and preservation of collateral in the secured party's possession.

(b) Right of repledge. A secured party having possession or control of securities or control of an investment account may create a security interest in the collateral.

(c) Buyer of certain rights to payment. If the secured party is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor, subsection (a) does not apply unless the secured party is entitled under an agreement:

(1) to charge back uncollected collateral; or

(2) otherwise to full or limited recourse against the debtor or a secondary obligor based on the nonpayment or other default of an account debtor or other obligor on the collateral.

Effective July 1, 2010.

Leech Lake Ojibwe Jud. Code, T. 9, Sec. Trans. Ord. § 9-204, LLOjibwe JCT9 STO § 9-204




LLOjibwe JCT9 STO § 9-205
9-205. Additional Duties of Certain Secured Parties

(a) Applicability of section. This section applies to cases in which there is no outstanding secured obligation and the secured party is not committed to make advances, incur obligations, or otherwise give value.

(b) Duty of secured party in control of investment account. Within ten (10) tribal business days after receiving a signed demand by the debtor, a secured party having control of an investment account shall send to the investment intermediary with which the investment account is maintained a signed statement that releases the investment intermediary from any further obligation to comply with instructions originated by the secured party.

(c) Duty of secured party if account debtor has been notified of assignment. Within ten (10) tribal business days after receiving a signed demand by the debtor, a secured party shall send to an account debtor that has received notification of an assignment to the secured party as assignee under the provisions of this ordinance dealing with discharge of an account debtor and notification of an assignment (Title 9-403), a signed record that releases the account debtor from any further obligation to the secured party. However, this subsection does not apply to an assignment constituting the sale of an account, chattel paper, or payment intangible.

Effective July 1, 2010.

Leech Lake Ojibwe Jud. Code, T. 9, Sec. Trans. Ord. § 9-205, LLOjibwe JCT9 STO § 9-205




LLOjibwe JCT9 STO § 9-206
9-206. [Reserved]

Effective July 1, 2010.

Leech Lake Ojibwe Jud. Code, T. 9, Sec. Trans. Ord. § 9-206, LLOjibwe JCT9 STO § 9-206




LLOjibwe JCT9 STO § 9-207
9-207. Request for Accounting; Request Regarding List of Collateral or Statement of Account

(a) A debtor may sign a record indicating what the debtor believes to be the aggregate amount of unpaid indebtedness as of specified date and send it to the secured party with a request that the statement be approved or corrected and returned to the debtor. When the security agreement or any other record kept by the secured party identifies the collateral a debtor may similarly request the secured party to approve or correct a list of the collateral.

(b) A secured party, other than a buyer of accounts, chattel paper, payment intangibles or promissory notes or a consignor, must comply with such a request within ten (10) tribal business days after receipt by sending a written correction or approval. If the secured party claims a security interest in all of a particular type of collateral owned by the debtor the secured party may indicate that fact in the reply and need not approve or correct an itemized list of such collateral. If the secured party no longer has an interest in the obligation or collateral at the time the request is received, the secured party must disclose the name and address of any known successor in interest. A successor in interest is not subject to this section until a request is received by the successor.

(c) A debtor is entitled to such statement once every six months without charge. The secured party may require payment of a charge not exceeding $25 for each additional statement furnished.

Effective July 1, 2010.

Leech Lake Ojibwe Jud. Code, T. 9, Sec. Trans. Ord. § 9-207, LLOjibwe JCT9 STO § 9-207







 

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