71-3-542. Priority of construction liens as against claims other than construction lien claims. (1) A construction lien arising under this part has priority over any other interest, lien, mortgage, or encumbrance that may attach to the building, structure, or improvement or on the real property on which the building, structure, or improvement is located and that is filed after the construction lien attaches.
(2) An interest, lien, mortgage, or encumbrance that is filed before the construction lien attaches has priority over a construction lien arising under this part, except as provided in subsections (3) and (4).
(3) A construction lien has priority, to the extent of the value of the work or improvement that is severable, over an interest, lien, mortgage, or encumbrance that is filed before the construction lien attaches. If the work or improvement may be removed without harm to the rest of the real property, the lienholder may have the value determined, the work or improvement sold separately on foreclosure, and the proceeds delivered to the lienholder to satisfy the construction lien.
(4) A construction lien has priority over any interest, lien, mortgage, or encumbrance that is filed before the construction lien attaches if that interest, lien, mortgage, or encumbrance was taken to secure advances made for the purpose of paying for the particular real estate improvement to which the lien was attached.
History: En. Sec. 12, Ch. 202, L. 1987; amd. Sec. 2280, Ch. 56, L. 2009.
Structure Montana Code Annotated
Title 71. Mortgages, Pledges, and Liens
71-3-506. through 71-3-510 reserved
71-3-523. Who may claim construction lien -- limitation
71-3-524. Limitation of lien for materials supplied
71-3-527. through 71-3-530 reserved
71-3-531. Notice of right to claim lien required -- exceptions
71-3-532. Content of notice of right to claim lien
71-3-533. Notice of completion
71-3-534. Filing with county clerk -- notification of owner
71-3-535. Attachment of lien -- filing
71-3-536. Content of lien notice
71-3-537. Acknowledgment of satisfaction of lien -- penalty
71-3-538. Release of notice of right to claim lien
71-3-539. and 71-3-540 reserved
71-3-541. Priority among holders of construction liens
71-3-542. Priority of construction liens as against claims other than construction lien claims
71-3-543. through 71-3-550 reserved
71-3-551. Substitution of bond allowed -- filing -- amount -- condition
71-3-552. Lien discharged upon filing of bond
71-3-553. Action upon bond -- period of limitation same
71-3-554. through 71-3-560 reserved