The Navajo Tribe v. The Bank of New Mexico, a New Mexico Corporation

BOHANON, District Judge.

FACTS

Early in 1972 the Navajo Tribe (hereinafter referred to as Tribe) established the Navajo Housing and Development Enterprise (hereinafter referred to as NHDE) in conformity with tribal law. In March, 1974, the Bank of New Mexico loaned $300,000.00 to NHDE. Again in December, 1975, the bank loaned NHDE $32,027.78. However, by November 18, 1976, NHDE was in default to the bank on the notes in the amount of $283,518.96. After repeated demands for payment, the bank sought other funds with which to satisfy the debt. A review of bank holdings revealed a six-month…