CMP.2.7.020 Consumer Agreements: Immunity, Conditions, and Disclosures

(a) Preservation of Tribal Sovereign Immunity and Exclusive Jurisdiction. All Consumer agreements must provide a notice regarding preservation of tribal sovereign immunity and exclusive jurisdiction of the Tribe, as well as a Consumer's limited and exclusive rights to submit complaints through the Tribal dispute resolution process in accordance with this Code and regulations of the Authority. The notice must inform the Consumer that:

(1) the Licensee consents to the jurisdiction of the Tribe and to the Tribal dispute resolution process in accordance with this Code and regulations of the Authority; and

(2) until the Tribal dispute resolution process is exhausted, the Consumer may not bring any claims in any court, in which case the Licensee reserves all rights and defenses.

(b) Consumer Agreement Required Notices and Disclosures; Borrower's Rights and Responsibilities. Each Loan Agreement must contain a notice and disclosure that advises the Consumer of their rights. The notice and disclosures must be Conspicuously Displayed within the Loan agreement. For Loans originated by a Licensee, the Loan Agreement must contain, at a minimum, the following information:

(1) Identify that the Licensee is wholly owned economic instrumentality of the Tribe, formed and operated pursuant to Tribal law for the express purpose of the economic development and betterment of the Tribe;

(2) The Licensee and the Tribe are immune from suit in any court unless the Tribe expressly and unequivocally waives its sovereign immunity or Congress authorizes suit under federal law;

(3) The Licensee is regulated and licensed by the Authority according to Tribal law, Tribal regulations, the Dodd-Frank Act, 12 USC § 5552, and applicable federal law and regulation;

(4) The Loan is made within the Tribe's jurisdiction and governed by Tribal law and applicable federal law;

(5) No portion of the Loan attempts to waive or otherwise prohibit the application of applicable federal law;

(6) The Loan may have a high interest rate and is not intended as a long-term financial solution;

(7) Alternative forms of credit may be less expensive;

(8) The Loan is not governed by the laws of any State and that Loans issued according to State law may offer interest rate limits and other consumer protections that are inapplicable to the Consumer, the Loan, and the Licensee;

(9) Consumer's signature and acceptance of the Loan indicates:

(A) Consumer understands that it is in the Consumer's best interests to evaluate their ability to repay the Loan;

(B) Consumer has had the opportunity to consult an independent financial counselor;

(C) Consumer understands that the Consumer, and not the Lender, is responsible to evaluate the Consumer's financial options;

(D) Consumer has read and understands the terms of the Loan, including the interest rate;

(E) Consumer understands the inapplicability of state law;

(F) Consumer understands that the Loan is made in accordance with the terms of a Loan agreement which is governed by Tribal law and that, by signing the Loan agreement and accepting the Loan, the Consumer is consenting to the Tribe's jurisdiction;

(10) Consumer consents to the dispute resolution process provided in the Loan agreement;

(11) Consumer has provided current and accurate information related to the Consumers' employment, income, credit, and asset history;

(12) Consumer is able to repay the loan according to the terms of the Loan agreement.