Montana Code 30-9A-601. Rights after default — judicial enforcement — consignor or buyer of accounts, chattel paper, payment intangibles, or promissory notes
30-9A-601. Rights after default — judicial enforcement — consignor or buyer of accounts, chattel paper, payment intangibles, or promissory notes. (1) After default, a secured party has the rights provided in this part and, except as otherwise provided in 30-9A-602, those provided by agreement of the parties. A secured party:
Terms Used In Montana Code 30-9A-601
- 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
- Consignor: means a person that delivers goods to a consignee in a consignment. 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
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- 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.
- Obligor: means a person that, with respect to an obligation secured by a security interest in or an agricultural lien on the collateral:
(A)owes payment or other performance of the obligation;
(B)has provided property other than the collateral to secure payment or other performance of the obligation; or
(C)is otherwise accountable in whole or in part for payment or other performance of the obligation. 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
- Statute: A law passed by a legislature.
(a)may reduce a claim to judgment, foreclose, or otherwise enforce the claim, security interest, or agricultural lien by any available judicial procedure; and
(b)if the collateral is documents, may proceed either as to the documents or as to the goods they cover.
(2)A secured party in possession of collateral or control of collateral under 30-7-107, 30-9A-104, 30-9A-105, 30-9A-106, or 30-9A-107 has the rights and duties provided in 30-9A-207.
(3)The rights under subsections (1) and (2) are cumulative and may be exercised simultaneously.
(4)Except as otherwise provided in 30-9A-605 and subsection (7) of this section, after default, a debtor and an obligor have the rights provided in this part and by agreement of the parties.
(5)If a secured party has reduced its claim to judgment, the lien of any levy that may be made upon the collateral by virtue of an execution based upon the judgment relates back to the earliest of:
(a)the date of perfection of the security interest or agricultural lien in the collateral;
(b)the date of filing a financing statement covering the collateral; or
(c)any date specified in a statute under which the agricultural lien was created.
(6)A sale pursuant to an execution is a foreclosure of the security interest or agricultural lien by judicial procedure within the meaning of this section. A secured party may purchase at the sale and thereafter hold the collateral free of any other requirements of this chapter.
(7)Except as otherwise provided in 30-9A-607(3), this part imposes no duties upon a secured party that is a consignor or is a buyer of accounts, chattel paper, payment intangibles, or promissory notes.