Mont. Code Ann. § 30-9A-317
Interests that take priority over or take free of security interest or agricultural lien
En. Sec. 36, Ch. 305, L. 1999; amd. Sec. 8, Ch. 179, L. 2001; Sec. 30-9-337, MCA 1999; redes. 30-9A-317 by Code Commissioner, 2001; amd. Sec. 83, Ch. 575, L. 2005; amd. Sec. 7, Ch. 75, L. 2013.
(1) A security interest or agricultural lien is subordinate to the rights of:
- (a) a person entitled to priority under 30-9A-322; and
(b) except as otherwise provided in subsection (5), a person that becomes a lien creditor before the earlier of the time:
- (i) the security interest or agricultural lien is perfected; or
- (ii) one of the conditions specified in 30-9A-203(2)(c) is met and a financing statement covering the collateral is filed.
- (2) Except as otherwise provided in subsection (5), a buyer, other than a secured party, of chattel paper, tangible documents, goods, instruments, or a certificated security takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.
- (3) Except as otherwise provided in subsection (5), a lessee of goods takes free of a security interest or agricultural lien if the lessee gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.
- (4) A licensee of a general intangible or a buyer, other than a secured party, of collateral other than tangible chattel paper, tangible documents, goods, instruments, or a certificated security takes free of a security interest if the licensee or buyer gives value without knowledge of the security interest and before it is perfected.
- (5) Except as otherwise provided in 30-9A-320 and 30-9A-321, if a person files a financing statement with respect to a purchase-money security interest before or within 20 days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee, or lien creditor that arise between the time the security interest attaches and the time of filing.
History: En. Sec. 36, Ch. 305, L. 1999; amd. Sec. 8, Ch. 179, L. 2001; Sec. 30-9-337, MCA 1999; redes. 30-9A-317 by Code Commissioner, 2001; amd. Sec. 83, Ch. 575, L. 2005; amd. Sec. 7, Ch. 75, L. 2013.