CHAPTER 207

MORTGAGE FORECLOSURE

207.01                         Rules Governing

Every mortgage of a house or interest therein signed which contains a power of sale upon default being made in any condition thereof may be foreclosed in accordance with the provisions of this chapter within ten (10) years after the maturing of such mortgage or the debt secured thereby.

(Section 207.01 amended to Tribal Code by Resolution No. 16-94, dated January 11, 1994)

207.02                         Pre-requisite of Foreclosure

To entitle any party to make a mortgage foreclosure, it is a pre-requisite:

      a)              That some default in a condition of such mortgage has accrued by which the power to sell has become operative;

      b)              That no other action or proceeding has been instituted at law to recover the debt then remaining secured by such mortgage, or any part thereof, or if the action or proceeding has been instituted, that the same has been discontinued or that an execution upon the judgment rendered therein has been returned unsatisfied, in whole or in part.

      c)              That an application be made to the Red Lake Court of Indian Offenses for an Order requiring the sale of said premises in accordance with the provisions of this chapter.

207.03                         Court Ordered Sale.

Upon an application being filed with the Court requesting an Order of foreclosures, a hearing on said application shall be set within ten (10) days after the filing of an application. A copy of the Notice of the hearing shall be served on the defendant and other person in possession of the premises at least five (5) days prior to the date of the hearing. Service of the Notice shall be made in accordance with service of process in civil actions. If the party seeking foreclosure shall establish at the hearing, by a preponderance of the evidence, that a default has occurred in the conditions or terms of such mortgage and that such default causes the power of sale to become operative, the Court shall enter an Order requiring the property to be sold in accordance with the provisions of this Chapter.

207.04                         Notice of Sale

A copy of a notice of sale that such mortgage will be foreclosed by a sale of the mortgaged premises shall be served just like a summons in a civil action upon the mortgagors and the persons in possession of the mortgaged premises. Service shall be made upon such persons at least two (2) weeks before the date of the sale. In addition, such notice of the sale shall be posted for at least four (4) weeks prior to the sale of three (3) public locations within the Red Lake Indian Reservation.

207.05                         Requisites of Notice

The Notice of Sale shall specify the following:

      a)              The name of the mortgagor and of the mortgagee;

      b)              The date of the mortgage and when and where recorded;

      c)              The amount claimed to be due on the mortgage as of the date of the notice:

      d)              A legal description of the mortgage premises and street address of possible;

      e)              The time and place of the sale; and

      f)               The time allowed for redemption by the mortgagor from the sale.

207.06                         Sale, How Made

The sale shall be made by the Red Lake Police Department at public auction to the highest bidder between 9:00 a.m. and 4:30 p.m. exclusive of Saturdays, Sundays and legal holidays.

207.07                         Postponement of Sale

The sale may be postponed from time to time by posting a new notice and continuing the new posting for the time required by law and serving the mortgagors and persons in possession of the premises with such notice as required by law.

207.08                         Mortgagee May Purchase

The mortgagee, its assigns and legal representatives, may fairly and in good faith purchase the premises at such sale.

207.09                         Certificate of Sale

When any sale of a house or interest therein is made pursuant to this chapter, the Red Lake Police Department shall make and deliver to the purchaser a certificate of sale which shall contain the following:

      a)              A description of the mortgage;

      b)              A description of the house sold;

      c)              The price paid for the house;

      d)              The time and place of the sale and the name of the purchaser;

      e)              The time allowed by law for redemption.

Upon expiration of the time for redemption, the Certificate of Sale shall automatically operate as a conveyance to the purchaser or his/her assigns of all the right, title and interest of the mortgagor in and to the premises named in the certificate at the date of such mortgage.

(Section 207.09 amended to the Tribal Code by Resolution No. 16-94, dated January 11, 1994)

207.10                         Proof of Sale

Filing of the following documents with the Secretary of the Red Lake Band of Chippewa Indian shall be his/her authority to transfer upon the expiration of the period of redemption:

      a)              Copy of Court Order;

      b)              Certificate of Sale;

      c)              The notice of sale with proof attached thereto that the same was served and posted according to the provisions of law;

      d)              An affidavit by the Red Lake Police Department that the lands have not been redeemed from the sale pursuant to law.

Upon filing of such documents with the Secretary of the Red Lake Band of Chippewa Indians, the same shall be prima facie evidence of the facts contained in said documents.

(Section 207.10 amended to Tribal Code by Resolution No. 16-94, dated January 11, 1994)

207.11                         Affidavit of Costs

Within ten (10) days after the sale, the foreclosing party shall make and file with the Police Department of the Red Lake Band of Chippewa Indians an affidavit of the costs and disbursements of the foreclosure, including any counsel fees, and stating therein that the same have been paid or incurred in connection with the foreclosure.

207.12                         Redemption by Mortgagor

Subdivision 1. When the house or any interest therein has been sold in accordance with this chapter, the mortgagor, his/her personal representative or assigns, within sixty (60) days after such sale may redeem such lands from the sale as hereinafter provided by paying the following sums of money to the Red Lake Police Department on behalf of the person who holds the rights acquired under such sale:

      a)              The sum of money for which the house was sold, and;

b)Interest from the time of the sale at the rate provided in the mortgage debt, and;

c)The costs and disbursements stated in the affidavit required pursuant to Section 207.11.

(Section 207.12 amended to the Tribal Code by Resolution No. 16-94, dated January 11, 1994)