30-9A-317. Interests that take priority over or take free of security interest or agricultural lien. (1) A security interest or agricultural lien is subordinate to the rights of:

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Terms Used In Montana Code 30-9A-317

  • Agricultural lien: means an interest, other than a security interest, in farm products:

    (i)that secures payment or performance of an obligation for:

    (A)goods or services furnished in connection with a debtor's farming operation; or

    (B)rent on real property leased by a debtor in connection with its farming operation;

    (ii)that is created by statute in favor of a person that:

    (A)in the ordinary course of its business furnished goods or services to a debtor in connection with a debtor's farming operation; or

    (B)leased real property to a debtor in connection with the debtor's farming operation; and

    (iii)whose effectiveness does not depend on the person's possession of the personal property. See Montana Code 30-9A-102

  • Chattel paper: means a record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods, or a lease of specific goods and license of software used in the goods. See Montana Code 30-9A-102
  • 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

  • Financing statement: means a record or records composed of an initial financing statement and any filed record relating to the initial financing statement. See Montana Code 30-9A-102
  • General intangible: means any personal property, including things in action, other than accounts, chattel paper, commercial tort claims, deposit accounts, documents, goods, instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, or other minerals before extraction. See Montana Code 30-9A-102
  • Goods: means all things that are movable when a security interest attaches. See Montana Code 30-9A-102
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Lien creditor: means :

    (i)a creditor that has acquired a lien on the property involved by attachment, levy, or the like;

    (ii)an assignee for benefit of creditors from the time of assignment;

    (iii)a trustee in bankruptcy from the date of the filing of the petition; and

    (iv)a receiver in equity from the time of appointment. See Montana Code 30-9A-102

  • Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
  • 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

  • Tangible chattel paper: means chattel paper evidenced by a record or records consisting of information that is inscribed on a tangible medium. See Montana Code 30-9A-102

(a)a person entitled to priority under 30-9A-322; and

(b)except as otherwise provided in subsection (5), a person that becomes a lien creditor before the earlier of the time:

(i)the security interest or agricultural lien is perfected; or

(ii)one of the conditions specified in 30-9A-203(2)(c) is met and a financing statement covering the collateral is filed.

(2)Except as otherwise provided in subsection (5), a buyer, other than a secured party, of chattel paper, tangible documents, goods, instruments, or a certificated security takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.

(3)Except as otherwise provided in subsection (5), a lessee of goods takes free of a security interest or agricultural lien if the lessee gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.

(4)A licensee of a general intangible or a buyer, other than a secured party, of collateral other than tangible chattel paper, tangible documents, goods, instruments, or a certificated security takes free of a security interest if the licensee or buyer gives value without knowledge of the security interest and before it is perfected.

(5)Except as otherwise provided in 30-9A-320 and 30-9A-321, if a person files a financing statement with respect to a purchase-money security interest before or within 20 days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee, or lien creditor that arise between the time the security interest attaches and the time of filing.