Montana § 25-14-205 - Relation Back Of Receiver's Title

§ 25-14-205. Relation Back Of Receiver's Title

Relation back of receiver's title. (1) When the receiver's title to personal property has become vested, as prescribed in 25-14-204 , it also extends back by relation for the benefit of the judgment creditor in whose behalf the proceedings were instituted, as follows: (a) When an order requiring the judgment debtor to attend and be examined has been served before the appointment of a receiver or the judgment debtor has been brought before the judge on arrest, the receiver's title extends back so as to include the personal property of the judgment debtor at the time of the service of the order or the judgment debtor's arrest. (b) When an order has not been served or an arrest has not been made, as specified in subsection (1)(a), but an order has been made requiring a person to attend and be examined concerning property belonging or a debt due to the judgment debtor, the receiver's title extends to the personal property belonging to the judgment debtor that was in the hands or under the control of the person or corporation required to attend at the time of the service of the order and to a debt then due the judgment debtor from that person or corporation. (c) In every other case, when notice of the application for the appointment of the receiver was given to the judgment debtor, the receiver's title extends to the personal property of the judgment debtor at the time when the notice was served, either personally or by complying with the requirements of an order prescribing a substitute for personal service. (2) When the case is within two or more of subsections (1)(a) through (1)(c), the rule most favorable to the judgment creditor must be adopted. (3) This section does not affect the title of a purchaser in good faith, without notice, and for a valuable consideration or the payment of a debt in good faith and without notice.