reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2A. Uniform Commercial Code Leases › Part 5. Default › 30-2A-528. Lessor's damages for nonacceptance, failure to pay, repudiation, or other default

30-2A-528. Lessor's damages for nonacceptance, failure to pay, repudiation, or other default.
(1) Except as otherwise provided with respect to damages liquidated in the lease agreement (30-2A-504) or otherwise determined pursuant to agreement of the parties (30-2A-503), if a lessor elects to retain the goods or a lessor elects to dispose of the goods and the disposition is by lease agreement that for any reason does not qualify for treatment under 30-2A-527(2) or is by sale or otherwise, the lessor may recover from the lessee as damages for a default of the type described in 30-2A-523(1) or (3)(a) or, if agreed, for other default of the lessee:
(a) accrued and unpaid rent as of the date of default if the lessee has never taken possession of the goods or, if the lessee has taken possession of the goods, as of the date the lessor repossesses the goods or an earlier date on which the lessee makes a tender of the goods to the lessor;
(b) the present value as of the date determined under subsection (1)(a) of the total rent for the then remaining lease term of the original lease agreement minus the present value as of the same date of the market rent at the place where the goods are located, computed for the same lease term; and
(c) any incidental damages allowed under 30-2A-530 less expenses saved in consequence of the lessee's default.
(2) If the measure of damages provided in subsection (1) is inadequate to put a lessor in as good a position as performance would have, the measure of damages is the present value of the profit, including reasonable overhead, that the lessor would have made from full performance by the lessee, together with any incidental damages allowed under 30-2A-530, allowance due for costs reasonably incurred, and credit due for payments or proceeds of disposition.
History: En. Sec. 82, Ch. 410, L. 1991; amd. Sec. 29, Ch. 575, L. 2005.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2A. Uniform Commercial Code Leases › Part 5. Default › 30-2A-529. Lessor's action for rent

30-2A-529. Lessor's action for rent.
(1) After default by the lessee under the lease contract of the type described in 30-2A-523(1) or (3)(a) or, if agreed, after other default by the lessee, if the lessor complies with subsection (2), the lessor may recover from the lessee as damages:
(a) for goods accepted by the lessee and not repossessed by or tendered to the lessor and for conforming goods lost or damaged within a commercially reasonable time after risk of loss passes to the lessee (30-2A-219):
(i) accrued and unpaid rent as of the date of entry of judgment in favor of the lessor;
(ii) the present value as of the same date of the rent for the then remaining lease term of the lease agreement; and
(iii) any incidental damages allowed under 30-2A-530 less expenses saved in consequence of the lessee's default; and
(b) for goods identified to the lease contract if the lessor is unable after reasonable effort to dispose of them at a reasonable price or the circumstances reasonably indicate that effort will be unavailing:
(i) accrued and unpaid rent as of the date of entry of judgment in favor of the lessor;
(ii) the present value as of the same date of the rent for the then remaining lease term of the lease agreement; and
(iii) any incidental damages allowed under 30-2A-530 less expenses saved in consequence of the lessee's default.
(2) Except as provided in subsection (3), the lessor shall hold for the lessee for the remaining lease term of the lease agreement any goods that have been identified to the lease contract and are in the lessor's control.
(3) The lessor may dispose of the goods at any time before collection of the judgment for damages obtained pursuant to subsection (1). If the disposition is before the end of the remaining lease term of the lease agreement, the lessor's recovery against the lessee for damages is governed by 30-2A-527 or 30-2A-528 and the lessor will cause an appropriate credit to be provided against a judgment for damages to the extent that the amount of the judgment exceeds the recovery available pursuant to 30-2A-527 or 30-2A-528.
(4) Payment of the judgment for damages obtained pursuant to subsection (1) entitles the lessee to the use and possession of the goods not then disposed of for the remaining lease term of and in accordance with the lease agreement.
(5) If a lessee under a lease contract defaults as described in 30-2A-523(1) or (3)(a) or, if agreed, after other default by the lessee, a lessor who is held not entitled to rent under this section must nevertheless be awarded damages for nonacceptance under 30-2A-527 or 30-2A-528.
History: En. Sec. 83, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2A. Uniform Commercial Code Leases › Part 5. Default › 30-2A-530. Lessor's incidental damages

30-2A-530. Lessor's incidental damages.
Incidental damages to an aggrieved lessor include any commercially reasonable charges, expenses, or commissions incurred in stopping delivery; in the transportation, care, and custody of goods after the lessee's default; in connection with return or disposition of the goods; or otherwise resulting from the default.
History: En. Sec. 84, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2A. Uniform Commercial Code Leases › Part 5. Default › 30-2A-531. Standing to sue third parties for injury to goods

30-2A-531. Standing to sue third parties for injury to goods.
(1) If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a party to the lease contract:
(a) the lessor has a right of action against the third party; and
(b) the lessee also has a right of action against the third party if the lessee:
(i) has a security interest in the goods;
(ii) has an insurable interest in the goods; or
(iii) bears the risk of loss under the lease contract or has since the injury assumed that risk as against the lessor and the goods have been converted or destroyed.
(2) If at the time of the injury the party plaintiff did not bear the risk of loss as against the other party to the lease contract and there is no arrangement between them for disposition of the recovery, the party plaintiff's suit or settlement, subject to the party plaintiff's own interest, is as a fiduciary for the other party to the lease contract.
(3) Either party with the consent of the other may sue for the benefit of whom it may concern.
History: En. Sec. 85, Ch. 410, L. 1991; amd. Sec. 898, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2A. Uniform Commercial Code Leases › Part 5. Default › 30-2A-532. Lessor's rights to residual interest

30-2A-532. Lessor's rights to residual interest.
In addition to any other recovery permitted by this chapter or other law, the lessor may recover from the lessee an amount that will fully compensate the lessor for any loss of or damage to the lessor's residual interest in the goods caused by the default of the lessee.
History: En. Sec. 86, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-101. Short title

30-3-101. Short title.
This chapter shall be known and may be cited as Uniform Commercial Code--Negotiable Instruments.
History: En. Sec. 3-101, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-101; amd. Sec. 87, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-103. Repealed

30-3-103. Repealed.
Sec. 230, Ch. 410, L. 1991.
History: En. Sec. 3-103, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-103.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-104. Negotiable instrument

30-3-104. Negotiable instrument.
(1) "Negotiable instrument" means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if it:
(a) is payable to bearer or to order at the time it is issued or first comes into possession of a holder;
(b) is payable on demand or at a definite time; and
(c) does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money except that the promise or order may contain:
(i) an undertaking or power to give, maintain, or protect collateral to secure payment;
(ii) an authorization or power to the holder to confess judgment or realize on or dispose of collateral; or
(iii) a waiver of the benefit of any law intended for the advantage or protection of any obligor.
(2) "Instrument" means a negotiable instrument.
(3) An order that meets all of the requirements of subsection (1) except subsection (1)(a) and otherwise falls within the definition of "check" in subsection (6) is a negotiable instrument and a check.
(4) Notwithstanding the provisions of subsection (1), a promise or order other than a check is not an instrument if, at the time it is issued or first comes into possession of a holder, it contains a conspicuous statement, however expressed, indicating that the writing is not an instrument governed by this chapter.
(5) An instrument is a "note" if it is a promise and is a "draft" if it is an order. If an instrument falls within the definition of both note and draft, the person entitled to enforce the instrument may treat it as either.
(6) (a) "Check" means:
(i) a draft, other than a documentary draft, payable on demand and drawn on a bank; or
(ii) a cashier's check or teller's check.
(b) An instrument may be a check even though it is described on its face by another term, such as "money order".
(7) "Cashier's check" means a draft with respect to which the drawer and drawee are the same bank or branches of the same bank.
(8) "Teller's check" means a draft drawn by a bank:
(a) on another bank; or
(b) payable at or through a bank.
(9) "Traveler's check" means an instrument that:
(a) is payable on demand;
(b) is drawn on or payable at or through a bank;
(c) is designated by the term traveler's check or by a substantially similar term; and
(d) requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the instrument.
(10) "Certificate of deposit" means an instrument containing an acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money. A certificate of deposit is a note of the bank.
History: En. Sec. 3-104, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-104; amd. Sec. 90, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-105. Unconditional promise or order

30-3-105. Unconditional promise or order.
(1) (a) Except as provided in subsections (2) and (3), for the purposes of 30-3-104(1), a promise or order is unconditional unless it states:
(i) an express condition to payment; or
(ii) that the promise or order is subject to or governed by another writing or that the rights or obligations with respect to the promise or order are stated in another writing.
(b) A mere reference to another writing does not make the promise or order conditional.
(2) A promise or order is not made conditional:
(a) by a reference to another writing for a statement of rights with respect to collateral, prepayment, or acceleration; or
(b) because payment is limited to or resorts to a particular fund or source.
(3) If a promise or order requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the promise or order, the condition does not make the promise or order conditional for the purposes of 30-3-104(1). If the person whose specimen signature appears on an instrument fails to countersign the instrument, the failure to countersign is a defense to the obligation of the issuer, but the failure does not prevent a transferee of the instrument from becoming a holder of the instrument.
(4) If a promise or order at the time it is issued or first comes into possession of a holder contains a statement, required by applicable statutory or administrative law, to the effect that the rights of a holder or transferee are subject to claims or defenses that the issuer could assert against the original payee, the promise or order is not thereby made conditional for the purposes of 30-3-104(1), but there cannot be a holder in due course of the promise or order.
History: En. Sec. 3-105, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-105; amd. Sec. 92, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-106. Repealed

30-3-106. Repealed.
Sec. 230, Ch. 410, L. 1991.
History: En. Sec. 3-106, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-106.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-107. Instrument payable in foreign money

30-3-107. Instrument payable in foreign money.
Unless the instrument otherwise provides, an instrument that states the amount payable in foreign money may be paid in the foreign money or in an equivalent amount in dollars calculated by using the current bank-offered spot rate at the place of payment for the purchase of dollars on the day on which the instrument is paid.
History: En. Sec. 3-107, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-107; amd. Sec. 93, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-108. Payable on demand

30-3-108. Payable on demand.
A promise or order is "payable on demand" if:
(1) it states that it is payable on demand or at sight or otherwise indicates that it is payable at the will of the holder; or
(2) it does not state any time of payment.
History: En. Sec. 3-108, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-108; amd. Sec. 94, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-109. Definite time

30-3-109. Definite time.
(1) A promise or order is "payable at a definite time" if it is payable on elapse of a definite period of time after sight or acceptance or at a fixed date or dates or at a time or times readily ascertainable at the time the promise or order is issued, subject to the rights of:
(a) prepayment;
(b) acceleration;
(c) extension at the option of the holder; or
(d) extension to a further definite time at the option of the maker or acceptor or automatically upon or after a specified act or event.
(2) If an instrument, payable at a fixed date, is also payable upon demand made before the fixed date, the instrument is payable on demand until the fixed date and, if demand for payment is not made before that date, becomes payable at a definite time on the fixed date.
History: En. Sec. 3-109, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-109; amd. Sec. 95, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-110. Repealed

30-3-110. Repealed.
Sec. 230, Ch. 410, L. 1991.
History: En. Sec. 3-110, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-110.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-111. Payable to bearer or to order

30-3-111. Payable to bearer or to order.
(1) A promise or order is "payable to bearer" if it:
(a) states that it is payable to bearer or to the order of bearer or otherwise indicates that the person in possession of the promise or order is entitled to payment;
(b) does not state a payee; or
(c) states that it is payable to or to the order of "cash" or otherwise indicates that it is not payable to an identified person.
(2) A promise or order that is not payable to bearer is "payable to order" if it is payable to the order of an identified person or to an identified person or order. A promise or order that is payable to order is payable to the identified person.
(3) An instrument payable to bearer may become payable to an identified person if it is specially indorsed as stated in 30-3-204(1). An instrument payable to an identified person may become payable to bearer if it is indorsed in blank as stated in 30-3-204(2).
History: En. Sec. 3-111, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-111; amd. Sec. 96, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-112. Repealed

30-3-112. Repealed.
Sec. 230, Ch. 410, L. 1991.
History: En. Sec. 3-112, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-112.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-113. Repealed

30-3-113. Repealed.
Sec. 230, Ch. 410, L. 1991.
History: En. Sec. 3-113, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-113.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-114. Date of instrument

30-3-114. Date of instrument.
(1) An instrument may be antedated or postdated. The date stated determines the time of payment if the instrument is payable at a fixed period after date. Except as provided in 30-4-401(3), an instrument payable on demand is not payable before the date of the instrument.
(2) If an instrument is undated, its date is the date of its issue or, in the case of an unissued instrument, the date it first comes into possession of a holder.
History: En. Sec. 3-114, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-114; amd. Sec. 100, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-115. Incomplete instrument

30-3-115. Incomplete instrument.
(1) "Incomplete instrument" means a signed writing, whether or not issued by the signer, the contents of which show at the time of signing that it is incomplete but that the signer intended it to be completed by the addition of words or numbers.
(2) Subject to subsection (3), if an incomplete instrument is an instrument under 30-3-104, it may be enforced according to its terms if it is not completed or according to its terms as augmented by completion. If an incomplete instrument is not an instrument under 30-3-104 but, after completion, the requirements of 30-3-104 are met, the instrument may be enforced according to its terms as augmented by completion.
(3) If words or numbers are added to an incomplete instrument without authority of the signer, there is an alteration of the incomplete instrument governed by 30-3-407.
(4) The burden of establishing that words or numbers were added to an incomplete instrument without authority of the signer is on the person asserting the lack of authority.
History: En. Sec. 3-115, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-115; amd. Sec. 102, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-116. Repealed

30-3-116. Repealed.
Sec. 230, Ch. 410, L. 1991.
History: En. Sec. 3-116, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-116.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-117. Repealed

30-3-117. Repealed.
Sec. 230, Ch. 410, L. 1991.
History: En. Sec. 3-117, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-117.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-118. Repealed

30-3-118. Repealed.
Sec. 230, Ch. 410, L. 1991.
History: En. Sec. 3-118, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-118.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-119. Other agreements affecting instrument

30-3-119. Other agreements affecting instrument.
Subject to applicable law regarding exclusion of proof of contemporaneous or prior agreements, the obligation of a party to an instrument to pay the instrument may be modified, supplemented, or nullified by a separate agreement of the obligor and a person entitled to enforce the instrument if the instrument is issued or the obligation is incurred in reliance on the agreement or as part of the same transaction giving rise to the agreement. To the extent an obligation is modified, supplemented, or nullified by an agreement under this section, the agreement is a defense to the obligation.
History: En. Sec. 3-119, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-119; amd. Sec. 104, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-120. Repealed

30-3-120. Repealed.
Sec. 230, Ch. 410, L. 1991.
History: En. Sec. 3-120, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-120.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-121. Repealed

30-3-121. Repealed.
Sec. 230, Ch. 410, L. 1991.
History: En. Sec. 3-121, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-121.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-122. Statute of limitations

30-3-122. Statute of limitations.
(1) Except as provided in subsection (5), an action to enforce the obligation of a party to pay a note payable at a definite time must be commenced within 6 years after the payment date or dates stated in the note or, if a payment date is accelerated, within 6 years after the accelerated payment date.
(2) Except as provided in subsection (4) or (5), if demand for payment is made to the maker of a note payable on demand, an action to enforce the obligation of a party to pay the note must be commenced within 6 years after the demand. If no demand for payment is made to the maker, an action to enforce the note is barred if neither principal nor interest on the note has been paid for a continuous period of 10 years.
(3) Except as provided in subsection (4), an action to enforce the obligation of a party to an unaccepted draft to pay the draft must be commenced within 6 years after dishonor of the draft or 10 years after the date of the draft, whichever period expires first.
(4) An action to enforce the obligation of the acceptor of a certified check or the issuer of a teller's check, cashier's check, or traveler's check must be commenced within 6 years after demand for payment is made to the acceptor or issuer, as the case may be.
(5) An action to enforce the obligation of a party to a certificate of deposit to pay the instrument must be commenced within 6 years after demand for payment is made to the maker, but if the instrument states a maturity date and the maker is not required to pay before that date, the 6-year period begins when a demand for payment is in effect and the maturity date has passed.
(6) This subsection applies to an action to enforce the obligation of a party to pay an accepted draft, other than a certified check. If the obligation of the acceptor is payable at a definite time, the action must be commenced within 6 years after the payment date or dates stated in the draft or acceptance. If the obligation of the acceptor is payable on demand, the action must be commenced within 6 years after the date of the acceptance.
(7) Unless governed by other law regarding claims for indemnity or contribution, an action for conversion of an instrument, for money had and received, or for like action based on conversion; for breach of warranty; or to enforce an obligation, duty, or right arising under this chapter and not governed by this section must be commenced within 3 years after the cause of action accrues.
History: En. Sec. 3-122, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-122; amd. Sec. 105, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-123. Repealed

30-3-123. Repealed.
Sec. 230, Ch. 410, L. 1991.
History: En. Sec. 593, C. Civ. Proc. 1895; re-en. Sec. 6500, Rev. C. 1907; re-en. Sec. 9092, R.C.M. 1921; re-en. Sec. 9092, R.C.M. 1935; amd. Sec. 18, Ch. 265, L. 1977; R.C.M. 1947, 93-2830.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-124. Subject matter

30-3-124. Subject matter.
(1) This chapter applies to negotiable instruments. It does not apply to money or to payment orders governed by chapter 4A. A negotiable instrument that is also a certificated security under 30-8-112(1)(d) is subject to chapter 8 and to this chapter.
(2) In the event of conflict between the provisions of this chapter and those of chapter 4, chapter 8, or chapter 9A, the provisions of chapter 4, chapter 8, and chapter 9A prevail over those of this chapter.
(3) Regulations of the board of governors of the federal reserve system and operating circulars of the federal reserve banks supersede any inconsistent provision of this chapter to the extent of the inconsistency.
History: En. Sec. 88, Ch. 410, L. 1991; amd. Sec. 4, Ch. 536, L. 1997.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-125. Issue of instrument

30-3-125. Issue of instrument.
(1) "Issue" means the first delivery of an instrument by the maker or drawer, whether to a holder or nonholder, for the purpose of giving rights on the instrument to any person.
(2) An unissued instrument or an unissued incomplete instrument (30-3-115) that is completed is binding on the maker or drawer, but nonissuance is a defense. An instrument that is conditionally issued or is issued for a special purpose is binding on the maker or drawer, but failure of the condition or special purpose to be fulfilled is a defense.
(3) "Issuer" applies to issued and unissued instruments and means any person that signs an instrument as maker or drawer.
History: En. Sec. 91, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-126. Identification of person to whom instrument is payable

30-3-126. Identification of person to whom instrument is payable.
(1) A person to whom an instrument is payable is determined by the intent of the person, whether or not authorized, signing as, in the name of, or on behalf of the maker or drawer. The instrument is payable to the person intended by the signer even if that person is identified in the instrument by a name or other identification that is not that of the intended person. If more than one person signs in the name or on behalf of the maker or drawer and all the signers do not intend the same person as payee, the instrument is payable to any person intended by one or more of the signers.
(2) If the signature of the maker or drawer of an instrument is made by automated means, such as a check-writing machine, the payee of the instrument is determined by the intent of the person who supplied the name or identification of the payee, whether or not authorized to do so.
(3) A person to whom an instrument is payable may be identified in any way, including by name, identifying number, office, or account number. For the purpose of determining the holder of an instrument, the following rules apply:
(a) If an instrument is payable to an account and the account is identified only by number, the instrument is payable to the person to whom the account is payable. If an instrument is payable to an account identified by number and by the name of a person, the instrument is payable to the named person, whether or not that person is the owner of the account identified by number.
(b) If an instrument is payable to:
(i) a trust, estate, or a person described as trustee or representative of a trust or estate, the instrument is payable to the trustee, the representative, or a successor of either, whether or not the beneficiary or estate is also named;
(ii) a person described as agent or similar representative of a named or identified person, the instrument is payable either to the represented person, the representative, or a successor of the representative;
(iii) a fund or organization that is not a legal entity, the instrument is payable to a representative of the members of the fund or organization; or
(iv) an office or to a person described as holding an office, the instrument is payable to the named person, the incumbent of the office, or a successor to the incumbent.
(4) If an instrument is payable to two or more persons alternatively, it is payable to any of them and may be negotiated, discharged, or enforced by any or all of them in possession of the instrument. If an instrument is payable to two or more persons not alternatively, it is payable to all of them and may be negotiated, discharged, or enforced only by all of them. If an instrument payable to two or more persons is ambiguous as to whether it is payable to the persons alternatively, the instrument is payable to the persons alternatively.
History: En. Sec. 97, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-127. Place of payment

30-3-127. Place of payment.
Except as otherwise provided for items in chapter 4, an instrument is payable at the place of payment stated in the instrument. If no place of payment is stated, an instrument is payable at the address of the drawee or maker stated in the instrument. If no address is stated, the place of payment is the place of business of the drawee or maker. If a drawee or maker has more than one place of business, the place of payment is any place of business of the drawee or maker chosen by the person entitled to enforce the instrument. If the drawee or maker has no place of business, the place of payment is the residence of the drawee or maker.
History: En. Sec. 98, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-128. Interest

30-3-128. Interest.
(1) Unless otherwise provided in the instrument, an instrument is not payable with interest and interest on an interest-bearing instrument is payable from the date of the instrument.
(2) Interest may be stated in an instrument as a fixed or variable amount of money, or it may be expressed as a fixed or variable rate or rates. The amount or rate of interest may be stated or described in the instrument in any manner and may require reference to information not contained in the instrument. If an instrument provides for interest but the amount of interest payable cannot be ascertained from the description, interest is payable at the judgment rate in effect at the place of payment of the instrument and at the time interest first accrues.
History: En. Sec. 99, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-129. Contradictory terms of instrument

30-3-129. Contradictory terms of instrument.
If an instrument contains contradictory terms, typewritten terms prevail over printed terms, handwritten terms prevail over both, and words prevail over numbers.
History: En. Sec. 101, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-130. Joint and several liability -- contribution

30-3-130. Joint and several liability -- contribution.
(1) Except as otherwise provided in the instrument, two or more persons who have the same liability on an instrument as makers, drawers, acceptors, indorsers who are indorsing joint payees, or anomalous indorsers are jointly and severally liable in the capacity in which they sign.
(2) Except as provided in 30-3-424(5) or by agreement of the affected parties, a party with joint and several liability that pays the instrument is entitled to receive from any party with the same joint and several liability contribution in accordance with applicable law.
(3) Discharge of one party with joint and several liability by a person entitled to enforce the instrument does not affect the right under subsection (2) of a party with the same joint and several liability to receive contribution from the party discharged.
History: En. Sec. 103, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 1. Short Title, Form, and Interpretation › 30-3-131. Notice of right to defend action

30-3-131. Notice of right to defend action.
In an action for breach of an obligation for which a third person is answerable over pursuant to this chapter or chapter 4, the defendant may give the third person written notice of the litigation and the person notified may then give similar notice to any other person who is answerable over. If the notice states that the person notified may come in and defend and that failure to do so will bind the person notified in an action later brought by the person giving the notice as to any determination of fact common to the two litigations, the person notified is so bound unless after seasonable receipt of the notice the person notified does come in and defend.
History: En. Sec. 106, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 2. Transfer and Negotiation › 30-3-201. Repealed

30-3-201. Repealed.
Sec. 230, Ch. 410, L. 1991.
History: En. Sec. 3-201, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-201.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 2. Transfer and Negotiation › 30-3-202. Negotiation

30-3-202. Negotiation.
(1) "Negotiation" means a transfer of possession, whether voluntary or involuntary, of an instrument to a person who thereby becomes its holder if possession is obtained from a person other than the issuer of the instrument.
(2) Except for negotiation by a remitter, if an instrument is payable to an identified person, negotiation requires transfer of possession of the instrument and its indorsement by the holder. If an instrument is payable to bearer, it may be negotiated by transfer of possession alone.
History: En. Sec. 3-202, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-202; amd. Sec. 107, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 2. Transfer and Negotiation › 30-3-203. Indorsement

30-3-203. Indorsement.
(1) "Indorsement" means a signature, other than that of a maker, drawer, or acceptor, that alone or accompanied by other words is made on an instrument for the purpose of negotiating the instrument, restricting payment of the instrument, or incurring indorser's liability on the instrument, but regardless of the intent of the signer, a signature and its accompanying words is an indorsement unless the accompanying words, the terms of the instrument, the place of the signature, or other circumstances unambiguously indicate that the signature was made for a purpose other than indorsement. For the purpose of determining whether a signature is made on an instrument, a paper affixed to the instrument is a part of the instrument.
(2) "Indorser" means a person who makes an indorsement.
(3) For the purpose of determining whether the transferee of an instrument is a holder, an indorsement that transfers a security interest in the instrument is effective as an unqualified indorsement of the instrument.
(4) If an instrument is payable to a holder under a name that is not the name of the holder, indorsement may be made by the holder in the name stated in the instrument or in the holder's name, or both, but signature in both names may be required by a person paying or taking the instrument for value or collection.
History: En. Sec. 3-203, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-203; amd. Sec. 110, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 2. Transfer and Negotiation › 30-3-204. Special indorsement -- blank indorsement -- anomalous indorsement

30-3-204. Special indorsement -- blank indorsement -- anomalous indorsement.
(1) If an indorsement is made by the holder of an instrument, whether payable to an identified person or payable to bearer, and the indorsement identifies a person to whom it makes the instrument payable, it is a "special indorsement". When specially indorsed, an instrument becomes payable to the identified person and may be negotiated only by the indorsement of that person. The principles stated in 30-3-126 apply to special indorsements.
(2) If an indorsement is made by the holder of an instrument and it is not a special indorsement, it is a "blank indorsement". When indorsed in blank, an instrument becomes payable to bearer and may be negotiated by transfer of possession alone until specially indorsed.
(3) The holder may convert a blank indorsement that consists only of a signature into a special indorsement by writing, above the signature of the indorser, words identifying the person to whom the instrument is made payable.
(4) "Anomalous indorsement" means an indorsement made by a person that is not the holder of the instrument. An anomalous indorsement does not affect the manner in which the instrument may be negotiated.
History: En. Sec. 3-204, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-204; amd. Sec. 111, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 2. Transfer and Negotiation › 30-3-206. Repealed

30-3-206. Repealed.
Sec. 230, Ch. 410, L. 1991.
History: En. Sec. 3-206, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-206.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 2. Transfer and Negotiation › 30-3-207. Repealed

30-3-207. Repealed.
Sec. 230, Ch. 410, L. 1991.
History: En. Sec. 3-207, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-207.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 2. Transfer and Negotiation › 30-3-208. Reacquisition

30-3-208. Reacquisition.
Reacquisition of an instrument occurs if it is transferred, by negotiation or otherwise, to a former holder. A former holder that reacquires the instrument may cancel indorsements made after the reacquirer first became a holder of the instrument. If the cancellation causes the instrument to be payable to the reacquirer or to bearer, the reacquirer may negotiate the instrument. An indorser whose indorsement is canceled is discharged, and the discharge is effective against any late holder.
History: En. Sec. 3-208, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-208; amd. Sec. 113, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 2. Transfer and Negotiation › 30-3-209. Negotiation subject to rescission

30-3-209. Negotiation subject to rescission.
(1) Negotiation is effective even if obtained:
(a) from an infant, a corporation exceeding its powers, or a person without capacity; or
(b) by fraud, duress, or mistake or in breach of duty or as part of an illegal transaction.
(2) To the extent permitted by law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good faith and without knowledge of facts that are a basis for rescission or other remedy.
History: En. Sec. 108, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 2. Transfer and Negotiation › 30-3-210. Rights acquired by transfer

30-3-210. Rights acquired by transfer.
(1) An instrument is transferred when it is delivered by a person other than its issuer for the purpose of giving to the person receiving delivery the right to enforce the instrument.
(2) Transfer of an instrument, regardless of whether the transfer is a negotiation, vests in the transferee any right of the transferor to enforce the instrument, including any right as a holder in due course, but the transferee may not acquire rights of a holder in due course by a transfer, directly or indirectly, from a holder in due course if the purchaser engaged in fraud or illegality affecting the instrument.
(3) Unless otherwise agreed, if an instrument is transferred for value and the transferee does not become a holder because of lack of indorsement by the transferor, the transferee has a specifically enforceable right to the unqualified indorsement of the transferor, but negotiation of the instrument does not occur until the indorsement is made.
(4) If a transferor purports to transfer less than the entire instrument, negotiation of the instrument does not occur. The transferee obtains no rights under this chapter and has only the rights of a partial assignee.
History: En. Sec. 109, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 3. Rights of a Holder › 30-3-301. Person entitled to enforce instrument

30-3-301. Person entitled to enforce instrument.
"Person entitled to enforce" an instrument means the holder of an instrument, a nonholder in possession of the instrument who has the rights of a holder, or a person not in possession of the instrument who is entitled to enforce the instrument pursuant to 30-3-309. A person may be a person entitled to enforce the instrument even though the person is not the owner of the instrument or is in wrongful possession of the instrument.
History: En. Sec. 3-301, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-301; amd. Sec. 114, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 3. Rights of a Holder › 30-3-302. Holder in due course

30-3-302. Holder in due course.
(1) Subject to subsection (3) and 30-3-105(4), "holder in due course" means the holder of an instrument if:
(a) the instrument when issued or negotiated to the holder does not bear such apparent evidence of forgery or alteration or is not otherwise so irregular or incomplete as to call into question its authenticity; and
(b) the holder took the instrument:
(i) for value;
(ii) in good faith;
(iii) without notice that it is overdue or has been dishonored or that there is an uncured default with respect to payment of another instrument issued as part of the same series;
(iv) without notice that the instrument contains an unauthorized signature or has been altered;
(v) without notice of any claim to the instrument stated in 30-3-306; and
(vi) without notice that any party to the instrument has any defense or claim in recoupment stated in 30-3-305(1).
(2) Notice of discharge of a party to the instrument, other than discharge in an insolvency proceeding, is not notice of a defense under subsection (1), but discharge is effective against a person who became a holder in due course with notice of the discharge. Public filing or recording of a document does not of itself constitute notice of a defense, claim in recoupment, or claim to the instrument.
(3) Except to the extent a transferor or predecessor in interest has rights as a holder in due course, a person does not acquire rights of a holder in due course of an instrument taken:
(a) by legal process or by purchase at an execution, bankruptcy, or creditor's sale or similar proceeding;
(b) by purchase as part of a bulk transaction not in ordinary course of business of the transferor; or
(c) as the successor in interest to an estate or other organization.
(4) If, under 30-3-303(1)(a), the promise of performance that is the consideration for an instrument has been partially performed, the holder may assert rights as a holder in due course of the instrument only to the fraction of the amount payable under the instrument equal to the value of the partial performance divided by the value of the promised performance.
(5) If the person entitled to enforce an instrument has only a security interest in the instrument and the person obliged to pay the instrument has a defense, claim in recoupment, or claim to the instrument that may be asserted against the person who granted the security interest, the person entitled to enforce the instrument may assert rights as a holder in due course only to an amount payable under the instrument that, at the time of enforcement of the instrument, does not exceed the amount of the unpaid obligation secured.
(6) To be effective, notice must be received at such time and in such manner as to give a reasonable opportunity to act on it.
(7) This section is subject to any law limiting status as a holder in due course in particular classes of transactions.
History: En. Sec. 3-302, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-302; amd. Sec. 115, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 3. Uniform Commercial Code Negotiable Instruments › Part 3. Rights of a Holder › 30-3-303. Value and consideration

30-3-303. Value and consideration.
(1) An instrument is issued or transferred for value if:
(a) the instrument is issued or transferred for a promise of performance, to the extent that the promise has been performed;
(b) the transferee acquires a security interest or other lien in the instrument other than a lien obtained by judicial proceedings;
(c) the instrument is issued or transferred as payment of, or as security for, an existing obligation of any person, whether or not the obligation is due;
(d) the instrument is issued or transferred in exchange for a negotiable instrument; or
(e) the instrument is issued or transferred in exchange for the incurring of an irrevocable obligation to a third party by the person taking the instrument.
(2) "Consideration" means any consideration sufficient to support a simple contract. The drawer or maker of an instrument has a defense if the instrument is issued without consideration. If an instrument is issued for a promise of performance, the drawer or maker has a defense to the extent performance of the promise is due and the promise has not been performed. If an instrument is issued for value as stated in subsection (1), the instrument is also issued for consideration.
History: En. Sec. 3-303, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-303; amd. Sec. 116, Ch. 410, L. 1991.