Montana § 30-9A-205 Use Or Disposition Of Collateral Permissible

Montana Statutes

§ 30-9A-205 — Use Or Disposition Of Collateral Permissible

Montana § 30-9A-205

Title 30TRADE AND COMMERCE

Ch. 9AUNIFORM COMMERCIAL CODE SECURED TRANSACTIONS

Part 2Effectiveness of Security Agreement -- Attachment of Security Interest -- Rights of Parties to Security Agreement

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Bluebook

Mont. Code Ann. § 30-9A-205 (2026).

Text

30-9A-205 . Use or disposition of collateral permissible.

(1)A security interest is not invalid or fraudulent against creditors solely because:

(a)the debtor has the right or ability to:

(i)use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;

(ii)collect, compromise, enforce, or otherwise deal with collateral;

(iii)accept the return of collateral or make repossessions; or

(iv)use, commingle, or dispose of proceeds; or

(b)the secured party fails to require the debtor to account for proceeds or replace collateral.

(2)This section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest depends upon possession of the collateral by the secured party.

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30-9A-205 . Use or disposition of collateral permissible. (1) A security interest is not invalid or fraudulent against creditors solely because:
(a) the debtor has the right or ability to:
(i) use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;
(ii) collect, compromise, enforce, or otherwise deal with collateral;
(iii) accept the return of collateral or make repossessions; or
(iv) use, commingle, or dispose of proceeds; or
(b) the secured party fails to require the debtor to account for proceeds or replace collateral.
(2) This section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest depends upon possession of the collateral by the secured party.