30-9A-205. Use or disposition of collateral permissible. (1) A security interest is not invalid or fraudulent against creditors solely because:

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Terms Used In Montana Code 30-9A-205

  • account for: means a right to payment of a monetary obligation, whether or not earned by performance:

    (A)for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of;

    (B)for services rendered or to be rendered;

    (C)for a policy of insurance issued or to be issued;

    (D)for a secondary obligation incurred or to be incurred;

    (E)for energy provided or to be provided;

    (F)for the use or hire of a vessel under a charter or other contract;

    (G)arising out of the use of a credit or charge card or information contained on or for use with the card; or

    (H)as winnings in a lottery or other game of chance operated or sponsored by a state, governmental unit of a state, or person licensed or authorized to operate the game by a state or governmental unit of a state. See Montana Code 30-9A-102

  • Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
  • Collateral: means the property subject to a security interest or agricultural lien. See Montana Code 30-9A-102
  • Debtor: means :

    (i)a person having a property interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;

    (ii)a seller of accounts, chattel paper, payment intangibles, or promissory notes; or

    (iii)a consignee. See Montana Code 30-9A-102

  • Goods: means all things that are movable when a security interest attaches. See Montana Code 30-9A-102
  • Secured party: means :

    (i)a person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;

    (ii)a person that holds an agricultural lien;

    (iii)a consignor;

    (iv)a person to which accounts, chattel paper, payment intangibles, or promissory notes have been sold;

    (v)a trustee, indenture trustee, agent, collateral agent, or other representative in whose favor a security interest or agricultural lien is created or provided for; or

    (vi)a person that holds a security interest arising under 30-2-401, 30-2-505, 30-2-711(3), 30-2A-508(5), 30-4-208, or 30-5-118. See Montana Code 30-9A-102

(a)the debtor has the right or ability to:

(i)use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;

(ii)collect, compromise, enforce, or otherwise deal with collateral;

(iii)accept the return of collateral or make repossessions; or

(iv)use, commingle, or dispose of proceeds; or

(b)the secured party fails to require the debtor to account for proceeds or replace collateral.

(2)This section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest depends upon possession of the collateral by the secured party.