SECURITY DEPOSIT SETTLEMENT STATEMENT & ITEMIZATION

(Mont. Code Ann. Title 70, Chapter 25 Compliant)

I. DOCUMENT HEADER

Date of Issue: [DATE]
Landlord/Agent: [LANDLORD LEGAL NAME], a [STATE] [ENTITY TYPE]
Tenant(s): [TENANT LEGAL NAME(S)]
Premises: [STREET ADDRESS, CITY, MT ZIP] (“Premises”)
Lease Commencement / Termination: [LEASE START DATE] – [MOVE-OUT DATE]
Governing Law: Montana Residential Tenant Security Deposit Statute, Mont. Code Ann. §§ 70-25-101 et seq.
Designated Forum: [state_housing_court] located in [COUNTY], Montana

II. DEFINITIONS

For ease of reference, the following capitalized terms shall have the meanings set forth below:

1. “Deposit” means the sum of $[ORIGINAL AMOUNT] paid by Tenant on [DATE PAID] pursuant to the Lease.
2. “Lease” means that certain Residential Lease Agreement dated [LEASE DATE] between Landlord and Tenant covering the Premises.
3. “Statute” means Mont. Code Ann. Title 70, Chapter 25, as the same may be amended from time to time.
4. “Settlement Statement” means this Security Deposit Settlement Statement & Itemization, together with all schedules and enclosures.

III. OPERATIVE PROVISIONS

3.1 Deposit Accounting

Pursuant to § 70-25-202, Landlord hereby tenders an accounting of the Deposit and encloses payment for any refundable balance.

*Statutory references included only where expressly authorized under the Citation Policy.

[// GUIDANCE: Attach legible copies of all invoices, receipts, time logs, photographs, and any additional evidence supporting each deduction.]

3.2 Good-Faith Estimates

If any actual cost listed above is not yet fully ascertainable, Landlord has made a reasonable good-faith estimate. A final supplemental statement, with supporting documentation and any additional refund, will be provided within the outer statutory deadline (not to exceed sixty (60) days from termination of tenancy).

3.3 Tenant Forwarding Address

All refunds and future correspondence shall be sent to the forwarding address supplied by Tenant:
[FORWARDING ADDRESS]. If no address is provided, Landlord will mail to the last known address pursuant to § 70-25-201(3).

IV. REPRESENTATIONS & WARRANTIES

4.1 Landlord represents that:
a. All deductions are lawful, reasonable, and limited to the categories expressly permitted by the Statute and the Lease;
b. Supporting documentation reflects actual or reasonably estimated costs incurred; and
c. This Settlement Statement is issued within the time limits prescribed by the Statute.

4.2 Tenant acknowledges receipt of this Settlement Statement by accepting or negotiating any refund check, but such acceptance shall not constitute a waiver of Tenant’s statutory rights to dispute the deductions.

V. COVENANTS & RESTRICTIONS

5.1 Tenant shall promptly (i) notify Landlord in writing of any dispute and (ii) pay any outstanding balance identified herein within ten (10) days of receipt, failing which such balance shall accrue interest and collection costs as permitted by law.

5.2 Landlord shall maintain all records supporting deductions for not less than three (3) years after issuance of this Statement.

VI. DEFAULT & REMEDIES

6.1 Events of Default:
a. Tenant’s failure to remit any outstanding balance when due;
b. Tenant’s failure to provide a valid forwarding address; or
c. Tenant’s dishonor of the refund check.

6.2 Landlord Remedies: Upon default, Landlord may pursue (i) monetary judgment in state_housing_court, (ii) reasonable attorney fees and costs as provided in the Lease and § 70-25-204, and (iii) all other remedies available at law or in equity.

[// GUIDANCE: Delete sub-sections that are inconsistent with the governing Lease.]

VII. RISK ALLOCATION

7.1 Liability Cap: Any statutory penalties assessed against Landlord under the Statute shall constitute the sole and exclusive damages available to Tenant with respect to the Deposit, except as otherwise mandated by law.

7.2 Force Majeure: Landlord shall not be liable for delays in providing final actual cost documentation caused by events beyond Landlord’s reasonable control (e.g., contractor backlogs, natural disasters), provided Landlord acts diligently.

VIII. DISPUTE RESOLUTION

8.1 Governing Law: This Settlement Statement shall be governed by and construed in accordance with the laws of the State of Montana, without regard to conflict-of-law principles.

8.2 Forum Selection: The parties agree that any dispute arising hereunder shall be filed exclusively in the [COUNTY] state_housing_court.

8.3 Arbitration: By express agreement of the parties and consistent with metadata, arbitration is excluded.

8.4 Jury Waiver: Nothing herein shall be construed as a waiver of any constitutional right to a jury trial.

8.5 Injunctive Relief: The parties stipulate that monetary damages constitute an adequate remedy; therefore, injunctive relief is neither sought nor preserved.

IX. GENERAL PROVISIONS

9.1 Entire Agreement: This Settlement Statement constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications.

9.2 Amendments: No amendment or modification shall be effective unless set forth in a written instrument executed by both Landlord and Tenant.

9.3 Severability: If any provision herein is determined invalid, the remaining provisions shall remain in full force to the extent permitted by law.

9.4 Counterparts; Electronic Signatures: This Statement may be executed in counterparts and by electronic signature, each of which shall be deemed an original and all of which together constitute one instrument.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, Landlord has executed this Settlement Statement as of the Date of Issue first set forth above.

[LANDLORD LEGAL NAME]
By: _________
Name: [TYPED NAME]
Title: [MANAGER/OWNER/AGENT]

Date: ________

ACKNOWLEDGED:

[TENANT NAME]
Date: ________

[// GUIDANCE: Notarization is not required for a security-deposit itemization under Montana law; omit unless your form practice dictates otherwise.]

ENCLOSURES

1. Refund Check #[__] in the amount of $[REFUND]
2. Supporting invoices, receipts, and photographs (items 1–[n])

[// GUIDANCE:
• Verify all statutory deadlines before issuance; currently, Montana generally requires delivery within 30 days of lease termination, subject to limited extensions for good-faith estimates.
• Maintain proof of mailing (e.g., USPS Certificate of Mailing or Certified Mail) to defend against statutory penalty claims.
• Retain a copy of the executed Statement and all enclosures in Landlord’s file for at least three years.
]