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BizIPEsq.
BizIPEsq., Attorney
Category: Business Law
Satisfied Customers: 996
Experience:  I am a business attorney. I represent individuals and companies with all business related matters.
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An Indian company says they will loan 10000.00 dollars on a

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An Indian company says they will loan 10000.00 dollars on a signature loan. My question is they dont have to follow federal laws of lending because of them being an Autonimous nation can they persue you in regular court or do they have to get you on the reservation if you dont pay iy back.

BizIPEsq. :

Hello, I will be assisting you.

BizIPEsq. :

This is an interesting question. Generally speaking tribal court can only adjudicate cases in which the tribe would otherwise have the power to regulate. Congress has enumerated a limited set of issues that a tribe can regulate including matters involving its land (mortgages for real estate on Indian land), its governance, certain family law proceedings, disputes that arise within its territory. etc. The recent US Supreme Court case of A-1 Contractors v. Strate affirmed the principle that Indian tribal courts can only exercise subject matter jurisdiction over disputes involving subject matter which the tribe can regulate under federal law. Federal law does not give tribes the power to regulate commerce, therefore the conclusion would be that if there is a dispute over the loan such dispute would be heard in Federal court and not tribal court.

BizIPEsq. :

This area of law is not entirely settled and as evidenced by the recent supreme court case it changes. Therefore, it would be not be likely that a loan granted to a non-Indian outside Indian territory would be adjudicated in tribal court.

BizIPEsq. :

Thank you for allowing me to assist you

BizIPEsq. :

Please rate my answer.

BizIPEsq. :

This took sometime to research so a bonus would be greatly appreciated

Customer:

But how does the federal govt allow the tribe to charge outrageous interest fees and makes loan co. inside the us be fined if they charge to much

BizIPEsq. :

That's a good question but it is different than the issue that you presented. From your perspective if you close on the loan outside tribal land you will likely be in state court in the event of breach

BizIPEsq. :

and not in tribal court

BizIPEsq. :

I trust this answered your question about which court such a matter would potentially be heard in

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