1. Uniform Commercial Codes:
An Important Tool for Tribal Economic Development

2. What is secured transaction law and why is it important?
Market economies depend on ability of organizations and individuals to access credit and encourage investment
To enable access to credit, rules are needed to govern “lender-borrower/creditor-debtor” transactions

3. What is secured transaction law and why is it important?
Three basis systems in modern market economies have developed for collecting debts:
Unsecured lending – no collateral required
Secured lending – ‘personal’ property as collateral
Mortgage lending – ‘real’ property as collateral

4. What is secured transaction law and why is it important?
Almost all developed private enterprise economies have laws or codes governing secured loans or transactions
Developing and transition economies around the world have made adoption of secured transaction laws a priority (i.e., Albania, Russia, Georgia, Kazakhstan, Kyrgyz Republic, Uzbekistan, China, Indonesia, Thailand)

5. Development of UCC in the US
By late 1800s interstate commerce hindered by lack of common commercial and other laws among states
National Conference of Commissioners on Uniform State Laws (NCCUSL) created in 1890s
UCC developed in 1940s to establish consistent legal environment for commercial transactions (14 years to draft, 10 years for all states to adopt in some form)
Near uniform adoption of UCC enabled large increase in cross-border business

6. Components of UCC Article 1 – Definitions of General Rules
Article 2 – Sales
Article 2A – Leases
Article 2B – Licenses
Article 3 – Negotiable Instruments
Article 4 – Bank Collections
Article 4A – Funds Transfers
Article 5 – Letters of Credit
Article 6 – Bulk Sales
Article 7 – Documents of Title
Article 8 – Investment Securities
Article 9 – Secured Transactions

7. Components of Article 9
Creation and attachment of security interests in collateral
List of types of property that can be used as collateral (personal, intangible, payment instruments, proceeds)
Method for perfection of security interest
Establish priority among creditors with interests in the same collateral
Filing system
Default and enforcement rules

8. Why are UCC’s important in Indian Country?
Need and desire for successful and sustainable economic development to increase tribal self- sufficiency
Can create an environment that encourages lenders and other off-reservation businesses to do business with tribes, tribal organizations, and individual entrepreneurs
Can create governing infrastructure that supports and strengthens tribal sovereignty
Can satisfy fears of uncertainty expressed by prospective lenders, business partners and investors

9. Why are UCC’s important in Indian Country?
Benefits of a commercial code:
Creates certainty and predictability about the rules
Encourages more lenders to do business on the reservation, thus increasing competition and reducing cost of money to tribes, tribal members, tribal organizations
Gives tribal member consumers and tribal member-owned businesses more bargaining power with lenders, investors
Can strengthen tribal sovereignty
Concerns:
Sovereignty, self governance, don’t want to just adopt “state laws” “white man’s laws”

10. UCCs in Indian Country Today – Examples of Different Models
Tribal Commercial Codes
Navajo Nation (1986), Sac and Fox Tribes
Montana Model Tribal Secured Transaction Code (1997)
Hoopa Valley Tribe, Northern Cheyenne
Adoption of state UCC – inc. by reference
Little River Band of Ottawa Indians, Cheyenne River, Mashantucket Pequot Tribal Nation
Adoption of model UCC – inc. by reference
Eastern Band of Cherokee Indians
Collection Codes – for sole purpose of enforcement of judgements
Oglala Sioux Tribe

11. Other Needs
Court system that is independent and impartial with ability to adjudicate complex commercial cases
Coordination with other law – rules of civil procedure? rules of evidence? etc.
Training of judges on complexity of commercial law
Public availability of laws and decisions
Filing systems – tribe? tribal consortium? state?