Apsaalooke/UCC Filing System Compact
The Apsaalooke Nation (Crow Tribe) and the State of Montana entered into a historical compact on February 6, 2008. Leaders from the Crow Tribe , the state of Montana and the federal government gathered in the U.S. Capitol for the signing of the Universal Commerical Code System Compact. This agreement, the first of its kind in the United States between a tribal and state government, standardizes the means by which banks file liens.
Traditionally when a bank makes a loan, it requires collateral property secured by a lien. Because of the sovereign nature of American Indian reservations, transactions could not be secured by a lien resulting in a severe lack of acess to capitol and higher interest rates.
This historic agreement between the two governments, allows Crow tribal members to use personal property as collateral for loans, including bank loans for business startups, auto loan financing and revolving lines of credit. In accordance with the compact, a bank’s claim on collateral is filed as a lien with the Montana Secretary of State’s office which serves as the central filing office.
In the event of default, the Crow Tribal Court will handle all claims. The compact allows the bank’s lien on collateral to be in full force and affect on the Crow Reservation.
This agreement serves as a model for healthy government to government relations, while reinforcing the concept of self-determination in Indian country. Because of the compact, there is a greater opportunity for new jobs and new businesses to be created within the exterior boundaries of the Crow Reservation.