Montana Code 30-9A-611. Notification before disposition of collateral
30-9A-611. Notification before disposition of collateral. (1) In this section, “notification date” means the earlier of the date on which:
Terms Used In Montana Code 30-9A-611
- Collateral: means the property subject to a security interest or agricultural lien. See Montana Code 30-9A-102
- Consumer goods: means goods that are used or bought for use primarily for personal, family, or household purposes. 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
- 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
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Secondary obligor: means an obligor to the extent that:
(i)the obligor's obligation is secondary; or
(ii)the obligor has a right of recourse with respect to an obligation secured by collateral against the debtor, another obligor, or property of either. 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)a secured party sends to the debtor and any secondary obligor an authenticated notification of disposition; or
(b)the debtor and any secondary obligor waive the right to notification.
(2)Except as otherwise provided in subsection (4), a secured party that disposes of collateral under 30-9A-610 shall send to the persons specified in subsection (3) a reasonable authenticated notification of disposition.
(3)To comply with subsection (2), the secured party shall send an authenticated notification of disposition to:
(a)the debtor;
(b)any secondary obligor; and
(c)if the collateral is other than consumer goods:
(i)any other person from which the secured party has received, before the notification date, an authenticated notification of a claim of an interest in the collateral;
(ii)any other secured party that, 10 days before the notification date, held a security interest in or agricultural lien on the collateral perfected by the filing of a financing statement that:
(A)identified the collateral;
(B)was indexed under the debtor’s name as of that date; and
(C)was filed in the office in which to file a financing statement against the debtor covering the collateral as of that date; and
(iii)any other secured party that, 10 days before the notification date, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in 30-9A-311(1).
(4)Subsection (2) does not apply if the collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market.
(5)A secured party complies with the requirement for notification prescribed in subsection (3)(c)(ii) if:
(a)not later than 20 days or earlier than 30 days before the notification date, the secured party requests, in a commercially reasonable manner, information concerning financing statements indexed under the debtor’s name in the office indicated in subsection (3)(c)(ii); and
(b)before the notification date, the secured party:
(i)did not receive a response to the request for information; or
(ii)received a response to the request for information and sent an authenticated notification of disposition to each secured party named in that response and whose financing statement covered the collateral.