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36.25.1008    CANCELLATION AND ABANDONMENT OF CABINSITE LEASES AND SECURITY INTERESTS

(1) The department may cancel a lease for nonpayment of rentals or any other breach of the lease contract.

(2) A lessee may request to abandon the lessee's right, title, and interest in the improvements on a cabinsite lease and the cabinsite lease itself to the department.

(a) The department reserves the discretion whether to accept the abandonment of the improvements and lease.

(b) All such abandonments shall utilize a form as prescribed by the department.

(3) Before any cancellation or abandonment of a cabinsite lease, the department shall notify any holder of a security interest form issued by the department of the impending cancellation or request by the lessee for abandonment.

(4) Abandonment of the lease begins on the date specified on the abandonment form. At such time the former lessee will forgo all rights to the lease, and if specified on the form, will forgo all rights to all improvements on the property. Abandonment of improvements means all movable and nonmovable improvements, as well as personal property.

(5) The cancellation date of the lease begins on the date specified by the department when the cancellation process is complete.

(6) After the lease is cancelled or abandoned, the lease shall be available for lease to a third party and the department may put the lease lot up for bid.

(7) The former lessee may or may not choose to market the improvements for sale. In no case will the department pay any realtor fees or commissions for the marketing of former lessee improvements when such marketing services are contracted by the lessee.

(8) The proposed buyer of a former lessee's improvements must still participate in, and be the successful bidder of the cabinsite lease, per ARM 36.25.1009.

(9) If the lease improvements have been abandoned, the improvements may be sold to a new lessee at a price determined by the department.

(10) The former lessee shall not be entitled to any refunds of any lease payments related to cancellation or abandonment.

History: 77-1-202, 77-1-209, MCA; IMP, 77-1-208, MCA; NEW, 2010 MAR p. 1293, Eff. 5/28/10.

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