Regulation 2025-A Regulation Governing Vendor Licensing

Section 1. Purpose

1.1  All Persons and Entities involved in or seeking to engage in the delivery of services to Tribal Consumer Financial Services or Tribal Debt Collection operations must possess required licenses or is registered with the Authority and must comply with contractual stipulations as mandated by this regulation. This regulation provides guidance with respect to the Tribe's lending ordinance and its intent.

Section 2. Definitions

2.1  Unless explicitly defined elsewhere in this regulation, terms used herein shall have the meanings assigned to them in the Tribal Ordinance, as amended from time to time.

2.2  A third-party vendor is an independent entity that provides goods or services to a primary contractor or licensee under a contractual agreement. This entity is not a direct employee or subsidiary of the primary contractor or licensee.

2.3  A subcontractor is an entity who has been engaged by a primary contractor to perform a specific portion of the work outlined in the primary contract.

Section 3. Licensing Requirement

2.1  No person or entity holding a license issued by the Authority may contract with any third-party vendor or subcontractor to conduct business within the Tribe's jurisdiction unless such vendor or subcontractor is also officially registered or holds a valid tribal license issued by the Authority.

2.2  The Financial Services Licensee and the Vendor is responsible for ensuring that its third- party vendors and subcontractors comply with this regulation.

2.3  No person or entity contracted with or seeking a contract with the Tribe shall directly or indirectly charge, impose, or pass through any licensing fees, registration fees, or similar charges to the Tribe or any Tribe-owned entity for the conduct of business within the Tribe’s jurisdiction. All such fees and charges shall be borne solely by the contractor or vendor. Any violation of this section shall result in a penalty for each occurrence, and may result in the termination of the contract or denial of future contracts with the Tribe.

Section 4. Requirement of Vendors providing Services

4.1  Any person or entity contracting with a Tribe-owned entity must use only service providers that are appropriately licensed to fulfill all contractual obligations. If the services being provided require a license under Tribal Code Chapter 94, the service provider must be licensed before being engaged. Subcontracting to any other person or entity without the Tribe's express written approval is strictly prohibited. If a proposed

service provider (including any proposed subcontractor) does not currently hold the required license, the contracting party must initiate the licensing process and obtain Tribal approval before engaging that provider.

Section 5: Contractual Obligations

5.1  Contractual Provisions: The Tribe's licensed entities shall mandate strict compliance with this regulation and all applicable Tribal lending laws by all vendors, third-party vendors, and subcontractors. The following sample language is provided for use in vendor contracts, and similar language may be used to ensure compliance with this regulation:

5.1.1        Sample Contract Language:

Vendor Name agrees to comply with all applicable Tribal lending laws and regulations. Vendor Name further agrees to ensure that all subcontractors and third-party providers comply with these requirements. Any violation of this provision shall constitute a material breach of this Agreement and may result in the imposition of liquidated damages, determined by the Tribe, per day for each day of non-compliance, as well as termination of the contract. Additionally, Vendor Name agrees to indemnify and hold harmless the Tribe and its licensed entity from and against any and all claims, losses, damages, liabilities, costs, and expenses arising from Vendor Name’s or its subcontractors’ or third-party

providers’ failure to comply with applicable Tribal lending laws and regulations.

Section 6. Penalties

6.1  Penalties for Licensees. Any Licensee found to be in violation of this regulation shall be subject to penalties, including but not limited to fines, license suspension, or revocation.

6.2  Penalties for Unlicensed Third-Party Vendors/Subcontractors. Any third-party vendor or subcontractor found to be conducting business within the Tribe's jurisdiction without a valid tribal license shall be subject to penalties, including but limited to fines, and/or cease and desist orders.

Section 7. Procedural Safeguards

7.1  Any person or entity facing disciplinary action under this regulation shall be provided with written notice of the alleged violations and the proposed penalties. Such notice shall be served personally or by certified mail at the last known address of the licensee or registrant. The licensee or registrant shall have the right to request a hearing in accordance with the Tribe's Notice and Opportunity to Cure; Due process; Notice; Hearings; Examiner section of the Ordinance.

Section 8. Effective Date

8.1  This regulation shall be effective TBD.

Regulation 2025-B

Regulation Governing Registration Requirements

Section 1. Purpose

1.1  The purpose of this regulation is to provide guidance and establish requirements for registration under Section 94.601 of Tribal Code Chapter 94 for persons or entities exempt from obtaining a license, to ensure compliance with the Tribe's lending ordinance applicable lending regulations, including, and to maintain a comprehensive record of registered entities within the jurisdiction.

Section 2. Registration

2.1  Any person or entity required to register shall submit a completed registration application to the Tribal Regulatory Authority on a form provided by the Authority.

2.2  All registration applications shall include a sworn statement executed by the Registrant. This statement shall affirm the Registrant's understanding and agreement to the following:

2.2.1        Submission to Tribal Jurisdiction: The Registrant submits to the jurisdiction of the Lac du Flambeau Tribe and acknowledges the Tribe's authority to govern lending activities within its jurisdiction.

2.2.2        Compliance with Laws and Regulations: The Registrant agrees to abide by Tribal Code Chapter 94, and applicable federal lending laws, lending regulations and policies.

2.2.3        Truthful Information: The Registrant swears that the information contained in the Registration Form is true and correct to the best of the Registrant's knowledge.

2.3  Refusal to execute the sworn statement or submission of a false statement shall be grounds for denial of the registration application or revocation of an existing registration. This action may be considered a termination of any existing business relationship with the Tribe, or a denial of the opportunity to establish such a relationship, specifically regarding the activities requiring registration.

Section 3. Registration Period.

3.1  Registrations are valid for two years from the date of issuance.

Section 4. Registration Renewal.

4.1  To renew a registration, a registrant shall submit a renewal application to the Tribal Regulatory Authority at least 30 days prior to the expiration date of the current registration.