MT HB520

Amends Section 76-3-207, MCA to clarify that the up-to-2-year restriction on transferring family transfer parcels does not prevent recipients from using the land as collateral for mortgages or trust indentures to secure loans

Exempts foreclosure sales and deeds in lieu of foreclosure from the transfer restriction period, allowing lenders who acquire the property through these means to freely transfer or convey it

Prohibits governing bodies from imposing civil liability on lenders or entities who receive security interests or acquire property through foreclosure proceedings

Protects the validity and priority of security interests in family transfer parcels from being impaired by local subdivision regulations

Establishes a $5,000 civil penalty per parcel for persons who knowingly evade subdivision regulations through family transfer provisions, while shielding innocent lenders from such penalties