Montana Code 61-6-137. Bond as proof of responsibility
61-6-137. Bond as proof of responsibility. (1) Proof of financial responsibility may be furnished by filing with the department the bond of a surety company authorized to transact business in the state or a bond with at least two individual sureties each owning real estate within this state and together having equities equal in value to at least twice the amount of the bond. The real estate must be scheduled in the bond approved by a judge of a court of record. The bond must be conditioned for payments in amounts and under the same circumstances that would be required in a motor vehicle liability policy and may not be cancelable except after 10 days’ written notice to the department. Upon the filing of notice to this effect by the department in the office of the county clerk and recorder of the county in which the real estate is located, the bond constitutes a lien in favor of the state upon the scheduled real estate of any surety. The lien exists in favor of any holder of a judgment against the person who has filed the bond.
Terms Used In Montana Code 61-6-137
- Department: means the department of justice acting directly or through its duly authorized officers or agents. See Montana Code 61-1-101
- 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
- Judgment: means any judgment that has become final by expiration without appeal of the time within which an appeal might have been perfected or by final affirmation on appeal rendered by a court of competent jurisdiction of any state or of the United States upon a cause of action arising out of the ownership, maintenance, or use of any motor vehicle, for damages, including damages for care and loss of services, because of bodily injury to or death of any person or for damages because of injury to or destruction of property, including the loss of use of property, or upon a cause of action on an agreement of settlement for damages. See Montana Code 61-6-102
- Lien: A claim against real or personal property in satisfaction of a debt.
- Motor vehicle: means :
(i)a vehicle propelled by its own power and designed or used to transport persons or property on the highways of the state;
(ii)a quadricycle if it is equipped for use on the highways as prescribed in chapter 9; or
(iii)a golf cart only if it is equipped for use on the highways as prescribed in chapter 9 and is operated pursuant to 61-8-391 or by a person with a low-speed restricted driver's license. See Montana Code 61-1-101
- Person: means every natural person, firm, partnership, association, or corporation. See Montana Code 61-6-102
- Proof of financial responsibility: means proof of ability to respond in damages for liability on account of accidents occurring subsequent to the effective date of the proof of financial responsibility, arising out of the ownership, maintenance, or use of a motor vehicle. See Montana Code 61-6-102
- State: means any state, territory, or possession of the United States, the District of Columbia, or any province of the Dominion of Canada. See Montana Code 61-6-102
(2)The person in whose favor the lien exists may, for the person’s own use and benefit and at the person’s sole expense, bring an action or actions in the name of the state against the company or persons executing the bond, including an action or proceeding to foreclose any lien that may exist upon the real estate of any person who has executed the bond. The provisions of the Montana Rules of Civil Procedure, except to the extent that they are inconsistent with the provisions of this part, are applicable to and constitute the rules of practice in the foreclosure actions or proceedings. The provisions of the Montana Rules of Civil Procedure relative to new trials and appeals, except to the extent that they are inconsistent with the provisions of this part, apply to the actions or proceedings.