The bill amends Section 76-3-207 of the Montana Code Annotated to clarify that prohibitions on conveying family transfer parcels do not apply to transactions involving lenders. It specifies that immediate family members or their spouses who receive a division of land cannot transfer or convey that land for up to two years unless certain conditions are met. However, the bill introduces new provisions that allow these recipients to convey an interest in the land under a mortgage or trust indenture to secure obligations owed to another party. Additionally, it states that the restrictions on transferring land do not apply in cases of foreclosure sales or deeds in lieu of foreclosure, allowing for more flexibility in these situations.

Furthermore, the bill includes provisions that protect the validity and priority of security interests in the land conveyed under the new rules. It prohibits the governing body from imposing civil liability on individuals or entities who acquire the land through foreclosure or from impairing their rights to use or transfer the land. The bill aims to ensure that while family transfer parcels are subject to certain regulations, they can still be used as collateral in financial transactions without facing undue restrictions.

Statutes affected:
LC Text: 76-3-207
HB0520_1(1): 76-3-207
HB0520_1(2): 76-3-207
HB0520_1(3): 76-3-207
HB0520_1(4): 76-3-207
HB0520_1(5): 76-3-207
HB0520_1(6): 76-3-207
HB0520_1: 76-3-207
HB0520_X(1): 76-3-207
HB0520_X(2): 76-3-207
HB0520_X(3): 76-3-207
HB0520_X(4): 76-3-207
HB0520_X(5): 76-3-207
HB0520_X(6): 76-3-207
HB0520_X(7): 76-3-207
HB0520_X(8): 76-3-207
HB0520_X(9): 76-3-207
HB0520_X: 76-3-207