Montana Code 30-9A-322. Priorities among conflicting security interests and agricultural liens in same collateral
30-9A-322. Priorities among conflicting security interests and agricultural liens in same collateral. (1) Except as otherwise provided in this section, priority among conflicting security interests and agricultural liens in the same collateral is determined according to the following rules:
Terms Used In Montana Code 30-9A-322
- 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
- Bank: means an organization that is engaged in the business of banking. See Montana Code 30-9A-102
- Cash proceeds: means proceeds that are money, checks, deposit accounts, or the like. 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
- Investment property: means a security, whether certificated or uncertificated, security entitlement, securities account, commodity contract, or commodity account. See Montana Code 30-9A-102
- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Property: means real and personal property. See Montana Code 1-1-205
- Statute: A law passed by a legislature.
- Supporting obligation: means a letter-of-credit right or secondary obligation that supports the payment or performance of an account, chattel paper, document, general intangible, instrument, or investment property. See Montana Code 30-9A-102
(a)Conflicting perfected security interests and agricultural liens rank according to priority in time of filing or perfection. Priority dates from the earlier of the time a filing covering the collateral is first made or the security interest or agricultural lien is first perfected if there is no period thereafter when there is neither filing nor perfection.
(b)A perfected security interest or agricultural lien has priority over a conflicting unperfected security interest or agricultural lien.
(c)The first security interest or agricultural lien to attach or become effective has priority if conflicting security interests and agricultural liens are unperfected.
(2)For the purposes of subsection (1)(a):
(a)the time of filing or perfection as to a security interest in collateral is also the time of filing or perfection as to a security interest in proceeds; and
(b)the time of filing or perfection as to a security interest in collateral supported by a supporting obligation is also the time of filing or perfection as to a security interest in the supporting obligation.
(3)Except as otherwise provided in subsection (6), a security interest in collateral that qualifies for priority over a conflicting security interest under 30-9A-327, 30-9A-328, 30-9A-329, 30-9A-330, or 30-9A-331 also has priority over a conflicting security interest in:
(a)any supporting obligation for the collateral; and
(b)proceeds of the collateral if:
(i)the security interest in proceeds is perfected;
(ii)the proceeds are:
(A)cash proceeds; or
(B)of the same type as the collateral; and
(iii)in the case of proceeds that are proceeds of proceeds, all intervening proceeds are cash proceeds, proceeds of the same type as the collateral, or an account relating to the collateral.
(4)Subject to subsection (5) and except as otherwise provided in subsection (6), if a security interest in chattel paper, deposit accounts, negotiable documents, instruments, investment property, or letter-of-credit rights is perfected by a method other than filing, conflicting perfected security interests in proceeds of the collateral rank according to priority in time of filing.
(5)Subsection (4) applies only if the proceeds of the collateral are not cash proceeds, chattel paper, negotiable documents, instruments, investment property, or letter-of-credit rights.
(6)Subsections (1) through (5) are subject to:
(a)subsection (7) and the other provisions of this part;
(b)30-4-208 with respect to a security interest of a collecting bank;
(c)30-5-118 with respect to a security interest of an issuer or nominated person; and
(d)30-9A-110 with respect to a security interest arising under chapter 2 or 2A.
(7)A perfected agricultural lien on collateral has priority over a conflicting security interest in or agricultural lien on the same collateral if the statute creating the agricultural lien so provides.