(Lapwai, ID)— The Nez Perce Tribe recently finalized adoption of a Tribal Uniform Commercial Code Secured Transaction Act (“UCC”) that will pave the way for increased economic opportunities and improved access to capital for tribal businesses. The Tribe’s newly enacted Nez Perce Tribal UCC, codified under the Nez Perce Revised Code, Title 12 Business Code, Chapter 12.30, aligns with the foundational principles of the UCC—a standardized set of laws governing commercial transactions across the United States. While the UCC is not federal law, it is uniformly adopted by states and a growing number of tribes to support small business lending and economic development.
Supporting Tribal Business Growth
The implementation of the Tribal UCC is poised to significantly enhance opportunities for Nez Perce tribal businesses, enabling them to secure larger loans, access financing faster, and receive more favorable terms. By addressing barriers to capital access, this initiative fosters the growth of small businesses and strengthens the reservation’s economy.
Collaborative Development Process
The development of the Tribal UCC began through a collaborative effort between the Nez Perce Tribe and the Nimiipuu Community Development Fund (Nimiipuu Fund), a Native Community Development Financial Institution (CDFI). Recognizing the need for an economic framework to support tribal businesses, the project focused on adapting the UCC’s Article 9 Secured Transactions model to fit the Tribe’s unique needs.
Contributors to the project included:
– Kimberly Pate, an attorney and Nimiipuu Fund board member provided oversight for pro bono hours for code development project
– Jeanette Moody, a University of Idaho law student who contributed pro bono hours to develop the initial code. Mrs. Moody is now an attorney with Nez Perce Tribe Legal Counsel.
– David Shaw, owner of Shaw Law and an expert in Tribal UCC and Tribal Law, who provided consultation during the drafting process.
– Darren Williams, Attorney for Nez Perce Tribe Office of Legal Counsel
– Jonelle Yearout, Executive Director of Nimiipuu Community Development Fund
Launch and Access
The final code was formally adopted by the Nez Perce Tribe October 1, 2024. To provide a public platform for administration of the Act, the Tribe entered into a Memorandum of Agreement (“MOA”) with the Idaho Secretary of State. The MOA allows banks and creditors to access the Nez Perce filling system through the Idaho Secretary of State’s website.
With this portal banks and creditors can file liens under Nez Perce Law for collateral that is located on the Nez Perce Reservation. This partnership to allow lenders to use the State’s filing system is the first for Idaho. This agreement represents a significant step in creating the necessary infrastructure to support economic growth on the Nez Perce Reservation
The Nez Perce Tribe UCC portal became available to the public on November 18, 2024. Filings can be accessed via the Idaho Secretary of State’s website at [https://sosbiz.idaho.gov/forms/ucc](https://sosbiz.idaho.gov/forms/ucc). A link to the portal and information about the code will also be available on the Nez Perce Tribe’s website under the Resources tab at http://www.nezperce.org. The Nez Perce Tribe code and the frequently asked questions “UCC FAQ” link can be found at https://nezperce.org/wp-content/uploads/2024/12/2024-09-20-Tribal-Uniform-Commercial-Code-FAQs-.pdf
