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