Montana Code 30-9A-613. Contents and form of notification before disposition of collateral — general
30-9A-613. Contents and form of notification before disposition of collateral — general. (1) Except in a consumer-goods transaction, the following rules apply:
Terms Used In Montana Code 30-9A-613
- Collateral: means the property subject to a security interest or agricultural lien. See Montana Code 30-9A-102
- Consumer-goods transaction: means a transaction to the extent that:
(i)an individual incurs an obligation primarily for personal, family, or household purposes; and
(ii)a security interest in consumer goods or in consumer goods and software that is used, licensed, or bought for use primarily for personal, family, or household purposes secures the obligation. 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
- 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
- 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
- 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)The contents of a notification of disposition are sufficient if the notification:
(i)describes the debtor and the secured party;
(ii)describes the collateral that is the subject of the intended disposition;
(iii)states the method of intended disposition;
(iv)states that the debtor is entitled to an accounting of the unpaid indebtedness and states the charge, if any, for an accounting; and
(v)states the time and place of a public disposition or the time after which any other disposition is to be made.
(b)Whether the contents of a notification that lacks any of the information set forth in subsection (1) are nevertheless sufficient is a question of fact.
(c)The contents of a notification providing substantially the information specified in subsection (1) are sufficient, even if the notification includes:
(i)information not specified by that subsection; or
(ii)minor errors that are not seriously misleading.
(d)A particular phrasing of the notification is not required.
(2)The following form of notification and the form appearing in 30-9A-614(3), when completed, each provides sufficient information:
NOTIFICATION OF DISPOSITION OF COLLATERAL
To: [Name of debtor, obligor, or other person to which the notification is sent]
From: [Name, address, and telephone number of secured party]
Name of Debtor(s): [Include only if debtor(s) are not an addressee]
[For a public disposition:]
We will sell [or lease or license, as applicable] the [describe collateral] [to the highest qualified bidder] in public as follows:
Day and Date: ……………….
Time: ……………….
Place: ……………….
[For a private disposition:]
We will sell [or lease or license, as applicable] the [describe collateral] privately sometime after [day and date].
You are entitled to an accounting of the unpaid indebtedness secured by the property that we intend to sell [or lease or license, as applicable] [for a charge of $ …….]. You may request an accounting by calling us at [telephone number]
[End of Form]