Montana Code 30-9A-625. Remedies for secured party’s failure to comply with chapter
30-9A-625. Remedies for secured party‘s failure to comply with chapter. (1) If it is established that a secured party is not proceeding in accordance with this chapter, a court may order or restrain collection, enforcement, or disposition of collateral on appropriate terms and conditions.
Terms Used In Montana Code 30-9A-625
- 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
- Consumer obligor: means an obligor who is an individual and who incurred the obligation as part of a transaction entered into primarily for personal, family, or household purposes. See Montana Code 30-9A-102
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- 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
- 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.
- 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
- Termination statement: means an amendment of a financing statement that:
(i)identifies, by its file number, the initial financing statement to which it relates; and
(ii)indicates either that it is a termination statement or that the identified financing statement is no longer effective. See Montana Code 30-9A-102
(2)Subject to subsections (3), (4), and (6), a person is liable for damages in the amount of any loss caused by a failure to comply with this chapter. Loss caused by a failure to comply may include loss resulting from the debtor‘s inability to obtain, or increased costs of, alternative financing.
(3)Except as otherwise provided in 30-9A-628:
(a)a person that, at the time of the failure, was a debtor, was an obligor, or held a security interest in or other lien on the collateral may recover damages under subsection (2) for its loss; and
(b)if the collateral is consumer goods, a person that was a debtor or a secondary obligor at the time a secured party failed to comply with this part may recover for that failure in any event an amount not less than the credit service charge plus 10% of the principal amount of the obligation or the time-price differential plus 10% of the cash price.
(4)A debtor whose deficiency is eliminated under 30-9A-626 may recover damages for the loss of any surplus. However, a debtor or secondary obligor whose deficiency is eliminated or reduced under 30-9A-626 may not otherwise recover under subsection (2) of this section for noncompliance with the provisions of this part relating to collection, enforcement, disposition, or acceptance.
(5)In addition to any damages recoverable under subsection (2), the debtor, consumer obligor, or person named as a debtor in a filed record, as applicable, may recover $500 in each case from:
(a)a secured party that fails to comply with 30-9A-208;
(b)a secured party that fails to comply with 30-9A-209;
(c)a person that files a record that the person is not entitled to file under 30-9A-509(1);
(d)a secured party that fails to cause the secured party of record to file or send a termination statement as required by 30-9A-513(1) or (3);
(e)a secured party that fails to comply with 30-9A-616(2)(a) and whose failure is part of a pattern, or consistent with a practice, of noncompliance; or
(f)a secured party that fails to comply with 30-9A-616(2)(b).
(6)A debtor or consumer obligor may recover damages under subsection (2) and, in addition, $500 in each case from a person that, without reasonable cause, fails to comply with a request under 30-9A-210. A recipient of a request under 30-9A-210 that never claimed an interest in the collateral or obligations that are the subject of a request under that section has a reasonable excuse for failure to comply with the request within the meaning of this subsection.
(7)If a secured party fails to comply with a request regarding a list of collateral or a statement of account under 30-9A-210, the secured party may claim a security interest only as shown in the list or statement included in the request as against a person that is reasonably misled by the failure.