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40-5-201 2 40-5-202 40-5-203 40-5-204 40-5-205 40-5-206 40-5-207 40-5-208 4 40-5-209 40-5-210 40-5-211 40-5-212 40-5-213 40-5-214 40-5-221 40-5-222 40-5-223 40-5-224 1 40-5-225 1 40-5-226 40-5-227 40-5-231 1 40-5-232 40-5-233 40-5-234 1 40-5-235 40-5-236 40-5-237 40-5-238 1 40-5-242 40-5-243 40-5-244 1 40-5-247 1 40-5-248 40-5-251 40-5-252 40-5-253 40-5-254 40-5-255 40-5-256 40-5-257 1 40-5-261 40-5-262 40-5-263 40-5-264 1 40-5-271 2 40-5-272 1 40-5-273 40-5-274 40-5-275

Mont. Code Ann. § 40-5-242

(1997)

Notice of support lien -- civil liability upon failure to honor support lien or to comply with warrant for distraint

(1) The department may, at any time after asserting a support lien, serve a notice of the lien on any person, firm, corporation, association, or political subdivision or department of the state in possession of any real or personal property that is due, owing, or belonging to an obligor. For this purpose, personal property includes the obligor's share of a decedent's estate, workers' compensation benefits, and any proceeds or potential proceeds from suits at law. Except as provided in subsections (1)(a) and (1)(b), the department may not impose a lien under this section upon a self-sufficiency trust established pursuant to Title 53, chapter 18, part 1, or upon the assets of a self-sufficiency trust established pursuant to Title 53, chapter 18, part 1.

(a) The department may impose a lien under this section upon a self-sufficiency trust or upon the assets of a self-sufficiency trust established pursuant to Title 53, chapter 18, part 1, if the department is required by federal law to recover or collect from the trust or its assets as a condition of receiving federal financial participation for the child support enforcement program or the FAIM financial assistance program.

(b) To the extent otherwise permitted by this section, the department is not precluded from asserting a claim or imposing a lien upon real or personal property prior to transfer of the property to the trust. If the department imposes a lien upon property prior to transfer to a self-sufficiency trust, any transfer of the property to the trust is subject to the lien.

(2) Except as provided in subsection (3), a person or entity is liable to the department in an amount equal to 100% of the value of a support lien or warrant for distraint or the value of real or personal property subject to a support lien or distrained by a warrant for distraint, whichever is less, together with costs, interest, and reasonable attorney fees, if the person or entity:

(a) pays over, releases, sells, transfers, or conveys real or personal property subject to a support lien, to or for the benefit of the obligor, after the person or entity receives actual notice of filing of the support lien; or

(b) fails or refuses to surrender upon demand property of an obligor when presented with a warrant for distraint by a sheriff or levying officer under the provisions of 40-5-247.

(3) A person or entity is not liable to the department under this section when:

(a) a written release or waiver of the support lien or warrant for distraint issued by the department has been delivered to the person or entity;

(b) a determination has been made in an adjudicative proceeding, either administrative or judicial, that a support lien does not exist or that the lien has been satisfied; or

(c) the property subject to a support lien has been transferred to, paid over to, or repossessed by a person or entity holding:

(i) a prior perfected lien;

(ii) a mortgage, the proceeds of which were used by the obligor to purchase real property; or

(iii) a perfected purchase money security interest, as defined by 30-9-107.

Official Annotations archive.org, 1997 edition
History:
En. Sec. 18, Ch. 612, L. 1979
Amd. Sec. 17, Ch. 549, L. 1989
Amd. Sec. 17, Ch. 631, L. 1993
Amd. Sec. 1, Ch. 262, L. 1997