27-1-1505. Liens

MT Code § 27-1-1505 (2019) (N/A)
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27-1-1505. Liens. (1) As used in this section, the following definitions apply:

(a) "Lien" means an encumbrance on property as security for the payment of a debt.

(b) "Nonconsensual common-law lien" means a lien that:

(i) is not provided for by a specific state or federal statute;

(ii) does not depend upon the consent of the owner of the property affected for its existence;

(iii) is not an equitable or constructive lien imposed by a court; and

(iv) is not of a type commonly used in legitimate commercial transactions.

(c) "Person" means an individual, group of individuals, or any organization of individuals.

(2) A person may not file a nonconsensual common-law lien upon the real or personal property of an individual or organization.

(3) (a) If a nonconsensual common-law lien is filed against the real or personal property of an individual or organization, the individual or organization may petition the district court in the county in which the affected property is located to remove the nonconsensual common-law lien. If the district court determines that the lien in question is a nonconsensual common-law lien, the district court shall enter an order directing the appropriate public official to remove the nonconsensual common-law lien.

(b) The legislature may provide other methods of removing nonconsensual common-law liens.

(4) The person filing the nonconsensual common-law lien is liable for the costs of removing the nonconsensual common-law lien, including reasonable attorney fees, court costs, and actual damages sustained by the aggrieved individual or organization as a result of the nonconsensual common-law lien.

History: En. Sec. 4, I.M. No. 123, Nov. 5, 1996.