36.25.122 MORTGAGES AND PLEDGES
provided in 77-6-401 through 77-6-404, MCA, state land
leases or licenses and leasehold interests may be pledged or mortgaged by the
lessee or licensee. The pledgee or mortgagee shall file the pledge or mortgage
or certified copy thereof with the department within 30 days of its receipt by
him. Within 30 days after payment of the indebtedness, termination of the
pledge agreement, or release of the mortgaged leasehold interest, the lessee
or licensee shall file proof of that fact with the department.
(2) If a lessee or
licensee mortgages his leasehold interest in state lands pursuant to 77-6-401,
MCA, then there must be an assignment, signed by the lessee or
licensee/mortgagor and the mortgagee, and placed in escrow. A copy of such
assignment must be filed with the department. An assignment is effective for the lease
term during which it is made and any subsequent renewal term as long as the
assignor continuously holds the lease. Failure to execute the terms of this
rule shall be cause for the department not to recognize the mortgage.
History: 77-1-209, MCA; IMP, 77-6-401 through 77-6-404, MCA; NEW, 1987 MAR p. 17, Eff. 1/16/87; AMD, 1988 MAR p. 73, Eff. 1/15/88; AMD, 1991 MAR p. 444, Eff. 4/12/91; TRANS, 1996 MAR p. 2384.