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2 chapters · 613 sections in this title.
Mich. Comp. Laws § 440.9316 Continued perfection of security interest following change in governing law.
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Sec. 9316. (1) A security interest perfected pursuant to the law of the jurisdiction designated in section 9301(a) or 9305(3) remains perfected until the earliest of the following: (a) The time perfection would have ceased under the law of that jurisdiction. (b) The expiration of…
Mich. Comp. Laws § 440.9317 Interests that take priority over or take free of unperfected security interest or agricultural lien.
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Sec. 9317. (1) A security interest or agricultural lien is subordinate to the rights of 1 or more of the following: (a) A person entitled to priority under section 9322. (b) Except as otherwise provided in subsection (5), a person that becomes a lien creditor before the earlier o…
Mich. Comp. Laws § 440.9318 No interest retained in right to payment that is sold; rights and title of seller of account or chattel paper with respect to creditors and purchasers.
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Sec. 9318. (1) A debtor that has sold an account, chattel paper, payment intangibles, or promissory note does not retain a legal or equitable interest in the collateral sold. (2) For purposes of determining the rights of creditors of, and purchasers for value of an account or cha…
Mich. Comp. Laws § 440.9319 Rights and title of consignee with respect to creditors and purchasers.
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Sec. 9319. (1) Except as otherwise provided in subsection (2), for purposes of determining the rights of creditors of, and purchasers for value of goods from, a consignee, while the goods are in the possession of the consignee, the consignee is deemed to have rights and title to …
Mich. Comp. Laws § 440.9320 Buyer of goods.
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Sec. 9320. (1) Except as otherwise provided in subsection (5), a buyer in ordinary course of business, other than a person buying farm products from a person engaged in farming operations, takes free of a security interest created by the buyer's seller, even if the security inter…
Mich. Comp. Laws § 440.9321 Licensee of general intangible and lessee of goods in ordinary course of business.
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Sec. 9321. (1) As used in this section, "licensee in ordinary course of business" means a person that becomes a licensee of a general intangible in good faith, without knowledge that the license violates the rights of another person in the general intangible, and in the ordinary …
Mich. Comp. Laws § 440.9322 Priorities among conflicting security interests in and agricultural liens on same collateral.
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Sec. 9322. (1) Except as otherwise provided in this section, priority among conflicting security interests and agricultural liens in the same collateral is determined according to the following rules: (a) Conflicting perfected security interests and agricultural liens rank accord…
Mich. Comp. Laws § 440.9323 Future advances.
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Sec. 9323. (1) Except as otherwise provided in subsection (3), for purposes of determining the priority of a perfected security interest under section 9322(1)(a), perfection of the security interest dates from the time an advance is made to the extent that the security interest s…
Mich. Comp. Laws § 440.9324 Priority of purchase-money security interests.
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Sec. 9324. (1) Except as otherwise provided in subsection (7), a perfected purchase-money security interest in goods other than inventory or livestock has priority over a conflicting security interest in the same goods, and, except as otherwise provided in section 9327, a perfect…
Mich. Comp. Laws § 440.9325 Priority of security interests in transferred collateral.
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Sec. 9325. (1) Except as otherwise provided in subsection (2), a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if all of the following are met: (a) The debtor acquired the collateral subject to the sec…
Mich. Comp. Laws § 440.9326 Priority of security interests created by new debtor.
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Sec. 9326. (1) Subject to subsection (2), a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and is perfected solely by a filed financing statement that would be ineffective to perfect the security interest but for the…
Mich. Comp. Laws § 440.9327 Priority of security interests in deposit account.
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Sec. 9327. The following rules govern priority among conflicting security interests in the same deposit account: (a) A security interest held by a secured party having control of the deposit account under section 9104 has priority over a conflicting security interest held by a se…
Mich. Comp. Laws § 440.9328 Priority of security interests in investment property.
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Sec. 9328. The following rules govern priority among conflicting security interests in the same investment property: (a) A security interest held by a secured party having control of investment property under section 9106 has priority over a security interest held by a secured pa…
Mich. Comp. Laws § 440.9329 Priority of security interests in letter-of-credit right.
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Sec. 9329. The following rules govern priority among conflicting security interests in the same letter-of-credit right: (a) A security interest held by a secured party having control of the letter-of-credit right under section 9107 has priority to the extent of its control over a…
Mich. Comp. Laws § 440.9330 Priority of purchaser of chattel paper or instrument.
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Sec. 9330. (1) A purchaser of chattel paper has priority over a security interest in the chattel paper that is claimed merely as proceeds of inventory subject to a security interest if both of the following are met: (a) In good faith and in the ordinary course of the purchaser's …
Mich. Comp. Laws § 440.9331 Priority of rights of purchasers of instruments, documents, and securities under other articles; priority of interests in financial assets and security entitlements under article 8.
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Sec. 9331. (1) This article does not limit the rights of a holder in due course of a negotiable instrument, a holder to which a negotiable document of title has been duly negotiated, or a protected purchaser of a security. These holders or purchasers take priority over an earlier…
Mich. Comp. Laws § 440.9332 Transfer of money; transfer of funds from deposit account.
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Sec. 9332. (1) A transferee of money takes the money free of a security interest unless the transferee acts in collusion with the debtor in violating the rights of the secured party. (2) A transferee of funds from a deposit account takes the funds free of a security interest in t…
Mich. Comp. Laws § 440.9333 Priority of certain liens arising by operation of law.
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Sec. 9333. (1) As used in this section, "possessory lien" means an interest, other than a security interest or an agricultural lien, that meets all of the following: (a) It secures payment or performance of an obligation for services or materials furnished with respect to goods b…
Mich. Comp. Laws § 440.9334 Priority of security interests in fixtures and crops.
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Sec. 9334. (1) A security interest under this article may be created in goods that are fixtures or may continue in goods that become fixtures. A security interest does not exist under this article in ordinary building materials incorporated into an improvement on land. (2) This a…
Mich. Comp. Laws § 440.9335 Accessions.
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Sec. 9335. (1) A security interest may be created in an accession and continues in collateral that becomes an accession. (2) If a security interest is perfected when the collateral becomes an accession, the security interest remains perfected in the collateral. (3) Except as othe…
Mich. Comp. Laws § 440.9336 Commingled goods.
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Sec. 9336. (1) As used in this section, "commingled goods" means goods that are physically united with other goods in such a manner that their identity is lost in a product or mass. (2) A security interest does not exist in commingled goods as such. However, a security interest m…
Mich. Comp. Laws § 440.9337 Priority of security interests in goods covered by certificate of title.
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Sec. 9337. If, while a security interest in goods is perfected by any method under the law of another jurisdiction, this state issues a certificate of title that does not show that the goods are subject to the security interest or contain a statement that they may be subject to s…
Mich. Comp. Laws § 440.9338 Priority of security interests or agricultural lien perfected by filed financing statement providing certain incorrect information.
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Sec. 9338. If a security interest or agricultural lien is perfected by a filed financing statement providing information described in section 9516(2)(e) that is incorrect at the time the financing statement is filed, all of the following apply: (a) The security interest or agricu…
Mich. Comp. Laws § 440.9339 Priority subject to subordination.
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Sec. 9339. This article does not preclude subordination by agreement by a person entitled to priority.
Mich. Comp. Laws § 440.9340 Effectiveness of right of recoupment or setoff against deposit account.
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Sec. 9340. (1) Except as otherwise provided in subsection (3), a bank with which a deposit account is maintained may exercise any right of recoupment or setoff against a secured party that holds a security interest in the deposit account. (2) Except as otherwise provided in subse…
Mich. Comp. Laws § 440.9341 Bank's rights and duties with respect to deposit account.
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Sec. 9341. Except as otherwise provided in section 9340(3), and unless the bank otherwise agrees in an authenticated record, a bank's rights and duties with respect to a deposit account maintained with the bank are not terminated, suspended, or modified by 1 or more of the follow…
Mich. Comp. Laws § 440.9342 Bank's right to refuse to enter into or disclose existence of control agreement.
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Sec. 9342. This article does not require a bank to enter into an agreement of the kind described in section 9104(1)(b), even if its customer so requests or directs. A bank that has entered into such an agreement is not required to confirm the existence of the agreement to another…
Mich. Comp. Laws § 440.9401 Alienability of debtor's rights.
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Sec. 9401. (1) Except as otherwise provided in subsection (2) and sections 9406, 9407, 9408, and 9409, whether a debtor's rights in collateral may be voluntarily or involuntarily transferred is governed by law other than this article. (2) An agreement between the debtor and secur…
Mich. Comp. Laws § 440.9402 Secured party not obligated on contract of debtor or in tort.
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Sec. 9402. The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor's acts or omissions.
Mich. Comp. Laws § 440.9403 Agreement not to assert defenses against assignee.
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Sec. 9403. (1) As used in this section, "value" has the meaning provided in section 3303(1). (2) Except as otherwise provided in this section, an agreement between an account debtor and an assignor not to assert against an assignee any claim or defense that the account debtor may…
Mich. Comp. Laws § 440.9404 Rights acquired by assignee; claims and defenses against assignee.
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Sec. 9404. (1) Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subsections (2) through (5), the rights of an assignee are subject to all of the following: (a) All terms of the agreement between the account debtor and ass…
Mich. Comp. Laws § 440.9405 Modification of assigned contract.
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Sec. 9405. (1) A modification of or substitution for an assigned contract is effective against an assignee if made in good faith. The assignee acquires corresponding rights under the modified or substituted contract. The assignment may provide that the modification or substitutio…
Mich. Comp. Laws § 440.9406 Discharge of account debtor; notification of assignment; identification and proof of assignment; restrictions on assignment of accounts, chattel paper, payment intangibles, and promissory notes ineffective.
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Sec. 9406. (1) Subject to subsections (2) through (9), an account debtor on an account, chattel paper, or a payment intangible may discharge its obligation by paying the assignor until, but not after, the account debtor receives a notification, authenticated by the assignor or th…
Mich. Comp. Laws § 440.9407 Restrictions on creation or enforcement of security interest in leasehold interest or in lessor's residual interest.
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Sec. 9407. (1) Except as otherwise provided in subsection (2), a term in a lease agreement is ineffective to the extent that it does 1 or more of the following: (a) Prohibits, restricts, or requires the consent of a party to the lease to the assignment or transfer of, or the crea…
Mich. Comp. Laws § 440.9408 Restrictions on assignment of promissory notes, health-care-insurance receivables, and certain general intangibles ineffective.
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Sec. 9408. (1) Except as otherwise provided in subsection (2) or (4), a term in a promissory note or in an agreement between an account debtor and a debtor that relates to a health-care-insurance receivable or a general intangible, including a contract, permit, license, or franch…
Mich. Comp. Laws § 440.9409 Restrictions on assignment of letter-of-credit rights ineffective.
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Sec. 9409. (1) A term in a letter of credit or a rule of law, statute, regulation, custom, or practice applicable to the letter of credit that prohibits, restricts, or requires the consent of an applicant, issuer, or nominated person to a beneficiary's assignment of or creation o…
Mich. Comp. Laws § 440.9501 Filing office.
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Sec. 9501. (1) Except as otherwise provided in subsection (2), the office in which to file a financing statement to perfect the security interest or agricultural lien is 1 of the following: (a) The office designated for the filing or recording of a record of a mortgage on the rel…
Mich. Comp. Laws § 440.9501a Fraudulent financing statement; affidavit; form; notice; termination of financing statement; filing fee; notice of termination; action to reinstate financing statement; court order; payment of costs and expenses; violation as felony; penalty; "regulated financial institution" defined.
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Sec. 9501a. (1) A person identified as a debtor in a financing statement filed with the secretary of state may file an affidavit with the secretary of state in the form prescribed under subsection (2) stating that the financing statement is fraudulent. A person shall not file an …
Mich. Comp. Laws § 440.9502 Contents of financing statement; record of mortgage as financing statement; time of filing financing statement.
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Sec. 9502. (1) Subject to subsection (2), a financing statement is sufficient only if it does all of the following: (a) Provides the name of the debtor. (b) Provides the name of the secured party or a representative of the secured party. (c) Indicates the collateral covered by th…
Mich. Comp. Laws § 440.9503 Name of debtor and secured party; "name of the settlor or testator" defined.
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Sec. 9503. (1) A financing statement sufficiently provides the name of the debtor if it meets all of the following that apply to the debtor: (a) Except as otherwise provided in subdivision (c), if the debtor is a registered organization or the collateral is held in a trust that i…
Mich. Comp. Laws § 440.9504 Indication of collateral.
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Sec. 9504. A financing statement sufficiently indicates the collateral that it covers if the financing statement provides 1 of the following: (a) A description of the collateral pursuant to section 9108. (b) An indication that the financing statement covers all assets or all pers…
Mich. Comp. Laws § 440.9505 Filing and compliance with other statutes and treaties for consignments, leases, other bailments, and other transactions.
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Sec. 9505. (1) A consignor, lessor, or other bailor of goods, a licensor, or a buyer of a payment intangible or promissory note may file a financing statement, or may comply with a statute or treaty described in section 9311(1), using the terms "consignor", "consignee", "lessor",…
Mich. Comp. Laws § 440.9506 Effect of errors or omissions.
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Sec. 9506. (1) A financing statement substantially satisfying the requirements of this part is effective, even if it has minor errors or omissions, unless the errors or omissions make the financing statement seriously misleading. (2) Except as otherwise provided in subsection (3)…
Mich. Comp. Laws § 440.9507 Effect of certain events on effectiveness of financing statement.
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Sec. 9507. (1) A filed financing statement remains effective with respect to collateral that is sold, exchanged, leased, licensed, or otherwise disposed of and in which a security interest or agricultural lien continues, even if the secured party knows of or consents to the dispo…
Mich. Comp. Laws § 440.9508 Effectiveness of financing statement if new debtor becomes bound by security agreement.
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Sec. 9508. (1) Except as otherwise provided in this section, a filed financing statement naming an original debtor is effective to perfect a security interest in collateral in which a new debtor has or acquires rights to the extent that the financing statement would have been eff…
Mich. Comp. Laws § 440.9509 Persons entitled to file a record.
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Sec. 9509. (1) A person may file an initial financing statement, amendment that adds collateral covered by a financing statement, or amendment that adds a debtor to a financing statement only if 1 of the following occurs: (a) The debtor authorizes the filing in an authenticated r…
Mich. Comp. Laws § 440.9510 Effectiveness of filing record.
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Sec. 9510. (1) A filed record is effective only to the extent that it was filed by a person that may file it under section 9509. (2) A record authorized by 1 secured party of record does not affect the financing statement with respect to another secured party of record. (3) A con…
Mich. Comp. Laws § 440.9511 Secured party of record.
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Sec. 9511. (1) A secured party of record with respect to a financing statement is a person whose name is provided as the name of the secured party or a representative of the secured party in an initial financing statement that has been filed. If an initial financing statement is …
Mich. Comp. Laws § 440.9512 Amendment of financing statement.
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Sec. 9512. (1) Subject to section 9509, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or, subject to subsection (5), otherwise amend the information provided in, a financing statement by filing an amendment that does both of the fol…
Mich. Comp. Laws § 440.9513 Termination statement.
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Sec. 9513. (1) A secured party shall cause the secured party of record for a financing statement to file a termination statement for the financing statement if the financing statement covers consumer goods and 1 or more of the following apply: (a) There is no obligation secured b…