Montana Code 30-9A-315. Secured party’s rights on disposition of collateral and in proceeds
30-9A-315. Secured party’s rights on disposition of collateral and in proceeds. (1) Except as otherwise provided in 30-2-403(2) and this chapter:
Terms Used In Montana Code 30-9A-315
- 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
- Cash proceeds: means proceeds that are money, checks, deposit accounts, or the like. See Montana Code 30-9A-102
- Collateral: means the property subject to a security interest or agricultural lien. See Montana Code 30-9A-102
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- 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
- Goods: means all things that are movable when a security interest attaches. See Montana Code 30-9A-102
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Property: means real and personal property. See Montana Code 1-1-205
- 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
(a)a security interest or agricultural lien continues in collateral notwithstanding sale, lease, license, exchange, or other disposition thereof unless the secured party authorized the disposition free of the security interest or agricultural lien; and
(b)a security interest attaches to any identifiable proceeds of collateral.
(2)Proceeds that are commingled with other property are identifiable proceeds:
(a)if the proceeds are goods, to the extent provided by 30-9A-336; and
(b)if the proceeds are not goods, to the extent that the secured party identifies the proceeds by a method of tracing, including application of equitable principles, that is permitted under law other than this chapter with respect to commingled property of the type involved.
(3)A security interest in proceeds is a perfected security interest if the security interest in the original collateral was perfected.
(4)A perfected security interest in proceeds becomes unperfected on the 21st day after the security interest attaches to the proceeds unless:
(a)the following conditions are satisfied:
(i)a filed financing statement covers the original collateral;
(ii)the proceeds are collateral in which a security interest may be perfected by filing in the office in which the financing statement has been filed; and
(iii)the proceeds are not acquired with cash proceeds;
(b)the proceeds are identifiable cash proceeds; or
(c)the security interest in the proceeds is perfected when the security interest attaches to the proceeds or within 20 days thereafter.
(5)If a filed financing statement covers the original collateral, a security interest in proceeds that remains perfected under subsection (4)(a) becomes unperfected at the later of:
(a)when the effectiveness of the filed financing statement lapses under 30-9A-515 or is terminated under 30-9A-513; or
(b)the 21st day after the security interest attaches to the proceeds.