Terms Used In Montana Code > Title 31 > Chapter 2 - Debtor and Creditor Relationships

• Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
• Affidavit: means a sworn written declaration made before an officer authorized to administer oaths or an unsworn written declaration made under penalty of perjury as provided in 1-6-105. See Montana Code 1-1-203
• Affiliate: means :

  (a)a person who directly or indirectly owns, controls, or holds with power to vote 20% or more of the outstanding voting securities of the debtor, other than a person who holds the securities:

  (i)as a fiduciary or agent without sole discretionary power to vote the securities; or

  (ii)solely to secure a debt if the person has not exercised the power to vote;

  (b)a corporation 20% or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote by the debtor or a person who directly or indirectly owns, controls, or holds with power to vote 20% or more of the outstanding voting securities of the debtor, other than a person who holds the securities:

  (i)as a fiduciary or agent without sole power to vote the securities; or

  (ii)solely to secure a debt if the person has not exercised the power to vote;

  (c)a person whose business is operated by the debtor under a lease or other agreement or a person substantially all of whose assets are controlled by the debtor; or

  (d)a person who operates the debtor's business under a lease or other agreement or controls substantially all of the debtor's assets. See Montana Code 31-2-328

• Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
• Asset: means property of a debtor, but the term does not include:

  (a)property to the extent it is encumbered by a valid lien;

  (b)property to the extent it is generally exempt under nonbankruptcy law; or

  (c)an interest in property held in tenancy by the entireties to the extent it is not subject to process by a creditor holding a claim against only one tenant. See Montana Code 31-2-328

• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
• Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
• Chambers: A judge's office.
• Claim: means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, legal, equitable, secured, or unsecured. See Montana Code 31-2-328
• Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
• Contract: A legal written agreement that becomes binding when signed.
• Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
• Creditor: means a person who has a claim. See Montana Code 31-2-328
• Debt: means liability on a claim. See Montana Code 31-2-328
• Debtor: means a person who is liable on a claim. See Montana Code 31-2-328
• Dependent: A person dependent for support upon another.
• Fiduciary: A trustee, executor, or administrator.
• Fraud: Intentional deception resulting in injury to another.
• Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
• Insider: includes :

  (a)if the debtor is an individual:

  (i)a relative of the debtor or of a general partner of the debtor;

  (ii)a partnership in which the debtor is a general partner;

  (iii)a general partner in a partnership described in subsection (7)(a)(ii); or

  (iv)a corporation of which the debtor is a director, officer, or person in control;

  (b)if the debtor is a corporation:

  (i)a director of the debtor;

  (ii)an officer of the debtor;

  (iii)a person in control of the debtor;

  (iv)a partnership in which the debtor is a general partner;

  (v)a general partner in a partnership described in subsection (7)(b)(iv); or

  (vi)a relative of a general partner, director, officer, or person in control of the debtor;

  (c)if the debtor is a partnership:

  (i)a general partner in the debtor;

  (ii)a relative of a general partner in, a general partner of, or a person in control of the debtor;

  (iii)another partnership in which the debtor is a general partner;

  (iv)a general partner in a partnership described in subsection (7)(c)(iii); or

  (v)a person in control of the debtor;

  (d)an affiliate or an insider of an affiliate as if the affiliate were the debtor; and

  (e)a managing agent of the debtor. See Montana Code 31-2-328

• 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}
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• Lien: A claim against real or personal property in satisfaction of a debt.
• Lien: means a charge against or an interest in property to secure payment of a debt or performance of an obligation and includes a security interest created by agreement, a judicial lien obtained by legal or equitable process or proceedings, a common-law lien, or a statutory lien. See Montana Code 31-2-328
• Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
• Oath: includes an affirmation or declaration. See Montana Code 1-1-201
• Oath: A promise to tell the truth.
• Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
• Person: means an individual, partnership, corporation, association, organization, government or governmental subdivision or agency, business trust, estate, trust, or any other legal or commercial entity. See Montana Code 31-2-328
• Property: means anything that may be the subject of ownership. See Montana Code 31-2-328
• Relative: means :

  (a)an individual related by consanguinity within the third degree as determined by the common law;

  (b)a spouse or an individual related to a spouse within the third degree as so determined; or

  (c)an individual in an adoptive relationship within the third degree. See Montana Code 31-2-328

• Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
• Several: means two or more. See Montana Code 1-1-201
• Third persons: means all persons who are not parties to the obligation or transaction concerning which the phrase is used. See Montana Code 1-1-206
• Transfer: means every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset and includes payment of money, release, lease, and creation of a lien or other encumbrance. See Montana Code 31-2-328
• Writing: includes printing. See Montana Code 1-1-203