36.25.118    ASSIGNMENTS

(1) Lessees or licensees desiring to assign a lease or license may apply on the standard application form prescribed by the department. No assignment will be approved unless it is made upon the form prescribed by the department. An assignment in order to be binding on the state must be approved by the department. An assignment will not be approved if all rentals or payments due have not been paid or the terms of the lease or license have been violated. The department may disapprove any assignment application which is not in the best interests of the state. The state will not approve the assignment of any lease or license which is subject to a pledge or mortgage without first notifying the pledgee or mortgagee in writing. If an assignment is made upon terms less advantageous to the assignee, than terms given by the state, the assignment shall not be approved. Assignments which result in a profit to the assignor over and above the value of improvements may result in cancellation of the lease subject to the appeal procedures under ARM 36.25.121.An assignment which is signed by both parties shall be construed to be conclusive proof that all payments for improvements have been paid to the assignor from the assignee.The department will not approve conditional assignments.Such transactions may only be accommodated through the subleasing procedure contained in ARM 36.25.119.The department will only accept assignments containing the original signatures of all appropriate parties.

(2) No assignment or series of assignments will be recognized by the department if the assignment is solely an attempt to avoid the loss of the preference right.

History: 77-1-209, MCA; IMP, 77-6-208, MCA; NEW, 1987 MAR p. 17, Eff. 1/16/87; AMD, 1988 MAR p. 73, Eff. 1/15/88; TRANS, 1996 MAR p. 2384.