Navajo Tribe says No To Credit Line For Casino Financing

"We're not going to sign it, so we had to look for alternative funding sources," said LoRenzo Bates, a Council Delegate.

The Navajo Nation will get their casino one way or another. Whether they eventually go with a line of credit or use a tribal trust fund, there will be a casino built by them in New Mexico.

The tribe originally had made a deal with JP Morgan Chase to receive the money that was necessary to build the casino. Now they are turning their back on the idea after finding out the amount of collateral they would have to put up front.

JP Morgan has asked for 125 percent collateral for the $100 million that the Nation was to borrow. That turned out to be something that the Nation just could not agree with, and it has since been a deal breaker.

"We're not going to sign it, so we had to look for alternative funding sources," said LoRenzo Bates, a Council Delegate. The Nation has made the focus of their new efforts a tribal trust fund.

The reason they are now looking to invest in themselves, is that the Nation wants the casino open by midsummer. The tribe is now in the stages of securing an architect. The target date for opening the casino is the Fourth of July.