{"data":{"id":"us-mt/30-9a-407","jurisdiction":"us-mt","citation":"30-9A-407","heading":"Restrictions on creation or enforcement of security interest in leasehold interest or in lessor's residual interest.","body":"(1) Except as otherwise provided in subsection (2), a term in a lease agreement is ineffective to the extent that it:\n(a) prohibits, restricts, or requires the consent of a party to the lease to the assignment or transfer of, or the creation, attachment, perfection, or enforcement of a security interest in, an interest of a party under the lease contract or in the lessor's residual interest in the goods; or\n(b) provides that the assignment or transfer or the creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the lease.\n(2) Except as otherwise provided in 30-2A-303(7), a term described in subsection (1)(b) is effective to the extent that there is:\n(a) a transfer by the lessee of the lessee's right of possession or use of the goods in violation of the term; or\n(b) a delegation of a material performance of either party to the lease contract in violation of the term.\n(3) The creation, attachment, perfection, or enforcement of a security interest in the lessor's interest under the lease contract or the lessor's residual interest in the goods is not a transfer that materially impairs the prospect of obtaining return performance by, materially changes the duty of, or materially increases the burden or risk imposed on the lessee within 30-2A-303(4). This subsection does not apply to the extent that enforcement results in a delegation of a material performance of the lessor.","path":["TITLE 30. TRADE AND COMMERCE","CHAPTER 9A. UNIFORM COMMERCIAL CODE SECURED TRANSACTIONS","Part 4. Rights of Third Parties"],"source_url":"https://mca.legmt.gov/bills/mca/title_0300/chapter_009A/part_0040/section_0070/0300-009A-0040-0070.html","current_through":"Montana Code Annotated 2025","vintage":"","retrieved_at":"2026-09-14T04:51:15Z","sha256":"7225df67676fce6537cc1e1393d121337660ca9f9499d7ab653540cab8ff8f9f","source_id":"us-mt","stale":false,"prev":"us-mt/30-9a-406","next":"us-mt/30-9a-408"},"notice":"GroundRules: Original legal text. Not legal advice."}