{"data":{"id":"us-mt/30-9a-620","jurisdiction":"us-mt","citation":"30-9A-620","heading":"Acceptance of collateral in full or partial satisfaction -- compulsory disposition of collateral.","body":"(1) Except as otherwise provided in subsection (7), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:\n(a) the debtor consents to the acceptance under subsection (3);\n(b) the secured party does not receive, within the time set forth in subsection (4), a notification of objection to the proposal signed by:\n(i) a person to which the secured party was required to send a proposal under 30-9A-621; or\n(ii) any other person, other than the debtor, holding an interest in the collateral subordinate to the security interest that is the subject of the proposal;\n(c) if the collateral is consumer goods, the collateral is not in the possession of the debtor when the debtor consents to the acceptance; and\n(d) subsection (5) does not require the secured party to dispose of the collateral.\n(2) A purported or apparent acceptance of collateral under this section is ineffective unless:\n(a) the secured party consents to the acceptance in a signed record or sends a proposal to the debtor; and\n(b) the conditions of subsection (1) are met.\n(3) For purposes of this section:\n(a) a debtor consents to an acceptance of collateral in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default; and\n(b) a debtor consents to an acceptance of collateral in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default or the secured party:\n(i) sends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained;\n(ii) in the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and\n(iii) does not receive a notification of objection signed by the debtor within 20 days after the proposal is sent.\n(4) To be effective under subsection (1)(b), a notification of objection must be received by the secured party:\n(a) in the case of a person to which the proposal was sent pursuant to 30-9A-621, within 20 days after notification was sent to that person; and\n(b) in other cases:\n(i) within 20 days after the last notification was sent pursuant to 30-9A-621; or\n(ii) if a notification was not sent, before the debtor consents to the acceptance under subsection (3).\n(5) A secured party that has taken possession of collateral shall dispose of the collateral pursuant to 30-9A-610 within the time specified in subsection (6) if:\n(a) 60% of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or\n(b) 60% of the principal amount of the obligation secured has been paid in the case of a nonpurchase-money security interest in consumer goods.\n(6) To comply with subsection (5), the secured party shall dispose of the collateral:\n(a) within 90 days after taking possession; or\n(b) within any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and signed after default.\n(7) In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.","path":["TITLE 30. TRADE AND COMMERCE","CHAPTER 9A. UNIFORM COMMERCIAL CODE SECURED TRANSACTIONS","Part 6. Default"],"source_url":"https://mca.legmt.gov/bills/mca/title_0300/chapter_009A/part_0060/section_0200/0300-009A-0060-0200.html","current_through":"Montana Code Annotated 2025","vintage":"","retrieved_at":"2026-09-14T04:51:17Z","sha256":"1ea0e49d36f5684f51e73a74e4f8108ecda780ee3c6a3f6dce7c288fdf7ee494","source_id":"us-mt","stale":false,"prev":"us-mt/30-9a-619","next":"us-mt/30-9a-621"},"notice":"GroundRules: Original legal text. Not legal advice."}