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Michigan Compiled Laws - Uniform Commercial Code

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• Uniform Commercial Code; Short Title - Mich. Comp. Laws Section 440.1101
  This act shall be known and may be cited as "uniform commercial code". History: 1962, Act 174, Eff. Jan. 1, 1964 ...
• Construction Of Act; Purposes; Variation By Agreement - Mich. Comp. Laws Section 440.1102
  (1) This act shall be liberally construed and applied to promote its underlying purposes and policies. (2) Underlying purposes and policies of this act are ...
• Supplementary Principles Of Law Applicable - Mich. Comp. Laws Section 440.1103
  Unless displaced by the particular provisions of this act, the principles of law and equity, including the law merchant and the law relative to ...
• Construction Of Act As To Implied Repeal By Subsequent Legislation - Mich. Comp. Laws Section 440.1104
  This act being a general act intended as a unified coverage of its subject matter, no part of it shall be deemed to be ...
• Agreement As To Law Governing Rights And Duties Of Parties; Act Applicable To Transactions Upon Failure To Agree; Effect Of Contrary Agreement Where Act Specifies Applicable Law - Mich. Comp. Laws Section 440.1105
  (2) If 1 of the following provisions of this act specifies the applicable law, that provision governs and a contrary agreement is effective only to ...
• Liberal Administration Of Remedies; Enforcement - Mich. Comp. Laws Section 440.1106
  (1) The remedies provided by this act shall be liberally administered to the end that the aggrieved party may be put in as good a ...
• Discharge Of Claim Or Right After Breach; Consideration - Mich. Comp. Laws Section 440.1107
  Any claim or right arising out of an alleged breach can be discharged in whole or in part without consideration by a written waiver ...
• Definitions - Mich. Comp. Laws Section 440.1201
  Subject to additional definitions contained in the subsequent articles of this act which are applicable to specific articles or parts of this act, and ...
• Prima Facie Evidence By Third Party Documents - Mich. Comp. Laws Section 440.1202
  A document in due form purporting to be a bill of lading, policy or certificate of insurance, official weigher's or inspector's certificate, consular invoice, ...
• Contracts And Duties; Obligation Of Good Faith In Performance Or Enforcement - Mich. Comp. Laws Section 440.1203
  Every contract or duty within this act imposes an obligation of good faith in its performance or enforcement. History: 1962, Act 174, Eff. Jan. ...
• Time; Reasonable Time; Seasonably, Definition - Mich. Comp. Laws Section 440.1204
  (1) Whenever this act requires any action to be taken within a reasonable time, any time which is not manifestly unreasonable may be fixed by ...
• Course Of Dealing; Usage Of Trade, Evidence - Mich. Comp. Laws Section 440.1205
  (1) A course of dealing is a sequence of previous conduct between the parties to a particular transaction which is fairly to be regarded as ...
• Statute Of Frauds As To Personal Property Not Otherwise Covered - Mich. Comp. Laws Section 440.1206
  (1) Except in the cases described in subsection (2) of this section, a contract for the sale of personal property is not enforceable by way ...
• Performance Or Acceptance Of Reservation Of Rights; Applicability Of Subsection (1) To Accord And Satisfaction - Mich. Comp. Laws Section 440.1207
  (1) A party who with explicit reservation of rights performs or promises performance or assents to performance in a manner demanded or offered by the ...
• Right To Accelerate Or Require Collateral - Mich. Comp. Laws Section 440.1208
  A term providing that one party or his successor in interest may accelerate payment or performance or require collateral or additional collateral "at will" ...
• Subordination Of Obligation Or Right To Payment; Security Interest Not Created; Construction Of Section. - Mich. Comp. Laws Section 440.1209
  An obligation may be issued as subordinated to payment of another obligation of the person obligated, or a creditor may subordinate his right to ...
• Definitions; Subject Or Medium Of Payment As Euro Or Ecu - Mich. Comp. Laws Section 440.1210
  (1) As used in this section and section 1211: (a) "ECU" or "European currency unit" means the currency basket that is from time to time ...
• Contract, Security, Or Instrument; Introduction Of Euro To Agreement Between Contracting Parties; Reference To Ecu - Mich. Comp. Laws Section 440.1211
  (1) The right to tender payment in a currency described in section 1210(4)(b) is not affected by either of the following: (a) The currency has ...
• Uniform Commercial Code--Sales; Short Title - Mich. Comp. Laws Section 440.2101
  This article shall be known and may be cited as "uniform commercial code--sales". History: 1962, Act 174, Eff. Jan. 1, 1964 ...
• Application Of Article; Security And Other Transactions Excluded - Mich. Comp. Laws Section 440.2102
  Unless the context otherwise requires, this article applies to transactions in goods; it does not apply to any transaction which although in the form ...
• Uniform Commercial Code; Sales; Definitions - Mich. Comp. Laws Section 440.2103
  (a) "Buyer" means a person who buys or contracts to buy goods. (b) "Good faith" in the case of a merchant means honesty in fact ...
• "Merchant,""Financing Agency," And "Between Merchants" Defined - Mich. Comp. Laws Section 440.2104
  (1) "Merchant" means a person who deals in goods of the kind or otherwise by his occupation holds himself out as having knowledge or skill ...
• Goods, Lot, Commercial Unit; Definitions. - Mich. Comp. Laws Section 440.2105
  (1) "Goods" means all things (including specially manufactured goods) which are movable at the time of identification to the contract for sale other than the ...
• Contract, Agreement, Contract For Sale, Sale, Present Sale; Definitions Of Certain Terms - Mich. Comp. Laws Section 440.2106
  (1) In this article unless the context otherwise requires "contract" and "agreement" are limited to those relating to the present or future sale of goods. ...
• Contract For Sale Of Property Removable Or Severable From Realty As Contract For Sale Of Goods; Third Party Rights; Execution And Recording As Notice To Third Parties - Mich. Comp. Laws Section 440.2107
  (1) A contract for the sale of minerals or the like, (including oil and gas) or a structure or its materials to be removed from ...
• Formal Requirements; Statute Of Frauds - Mich. Comp. Laws Section 440.2201
  (1) Except as otherwise provided in this section, a contract for the sale of goods for the price of $1,000.00 or more is not enforceable ...
• Final Written Expression Of Agreement; Parol Or Extrinsic Evidence - Mich. Comp. Laws Section 440.2202
  Terms with respect to which the confirmatory memoranda of the parties agree or which are otherwise set forth in a writing intended by the ...
• Seals - Mich. Comp. Laws Section 440.2203
  The affixing of a seal to a writing evidencing a contract for sale or an offer to buy or sell goods does not constitute ...
• Contract For Sale; Formation, Conduct, Time, Open Terms - Mich. Comp. Laws Section 440.2204
  (1) A contract for sale of goods may be made in any manner sufficient to show agreement, including conduct by both parties which recognizes the ...
• Firm Offers - Mich. Comp. Laws Section 440.2205
  An offer by a merchant to buy or sell goods in a signed writing which by its terms gives assurance that it will be ...
• Offer And Acceptance In Formation Of Contract - Mich. Comp. Laws Section 440.2206
  (1) Unless otherwise unambiguously indicated by the language or circumstances (a) an offer to make a contract shall be construed as inviting acceptance in any ...
• Additional Or Different Terms In Acceptance; Contract By Conduct - Mich. Comp. Laws Section 440.2207
  (1) A definite and seasonable expression of acceptance or a written confirmation which is sent within a reasonable time operates as an acceptance even though ...
• Course Of Performance; Practical Construction, Waiver, Modification - Mich. Comp. Laws Section 440.2208
  (1) Where the contract for sale involves repeated occasions for performance by either party with knowledge of the nature of the performance and opportunity for ...
• Modification; Rescission; Waiver, Retraction - Mich. Comp. Laws Section 440.2209
  (1) An agreement modifying a contract within this article needs no consideration to be binding. (2) A signed agreement which excludes modification or rescission except ...
• Delegation Of Performance; Assignment Of Rights - Mich. Comp. Laws Section 440.2210
  (1) A party may perform that party's duty through a delegate unless otherwise agreed or unless the other party has a substantial interest in having ...
• Obligations Of Seller And Buyer. - Mich. Comp. Laws Section 440.2301
  The obligation of the seller is to transfer and deliver and that of the buyer is to accept and pay in accordance with the ...
• Unconscionable Contract Or Clause. - Mich. Comp. Laws Section 440.2302
  (1) If the court as a matter of law finds the contract or any clause of the contract to have been unconscionable at the time ...
• Allocation Or Division Of Risk Or Burden - Mich. Comp. Laws Section 440.2303
  Where this article allocates a risk or a burden as between the parties "unless otherwise agreed", the agreement may not only shift the allocation ...
• Price; Payment In Money, Goods, Realty, Or Otherwise - Mich. Comp. Laws Section 440.2304
  (1) The price can be made payable in money or otherwise. If it is payable in whole or in part in goods each party is ...
• Open Price Term; Fixed Price. - Mich. Comp. Laws Section 440.2305
  (1) The parties if they so intend can conclude a contract for sale even though the price is not settled. In such a case the ...
• Output Of Seller; Requirement Of Buyer; Exclusive Dealing - Mich. Comp. Laws Section 440.2306
  (1) A term which measures the quantity by the output of the seller or the requirements of the buyer means such actual output or requirements ...
• Delivery In Single Lot Or Several Lots; Payment - Mich. Comp. Laws Section 440.2307
  Unless otherwise agreed all goods called for by a contract for sale must be tendered in a single delivery and payment is due only ...
• Place For Delivery Of Goods And Documents Of Title - Mich. Comp. Laws Section 440.2308
  Unless otherwise agreed (a) the place for delivery of goods is the seller's place of business or if he has none his residence; but ...
• Time Of Performance; Contract Termination - Mich. Comp. Laws Section 440.2309
  (1) The time for shipment or delivery or any other action under a contract if not provided in this article or agreed upon shall be ...
• Open Time And Place For Payment Or Running Of Credit; Shipment Under Reservation; Inspection - Mich. Comp. Laws Section 440.2310
  Unless otherwise agreed (a) payment is due at the time and place at which the buyer is to receive the goods even though the ...
• Specification Of Performance; Assortment And Shipment Of Goods; Remedies - Mich. Comp. Laws Section 440.2311
  (1) An agreement for sale which is otherwise sufficiently definite (subsection (3) of section 2204) to be a contract is not made invalid by the ...
• Warranties Of Title; Freedom From Liens - Mich. Comp. Laws Section 440.2312
  (1) Subject to subsection (2) there is in a contract for sale a warranty by the seller that (a) the title conveyed shall be good, ...
• Creation Of Express Warranties By Seller - Mich. Comp. Laws Section 440.2313
  (1) Express warranties by the seller are created as follows: (a) An affirmation of fact or promise made by the seller to the buyer which ...
• Express Warranty; Extension; Merchant Or Warrantor To Give Purchaser Writing Stating Time Period - Mich. Comp. Laws Section 440.2313b
  An express warranty covering goods sold to a purchaser in this state shall be extended by a period equal to the number of days ...
• Implied Warranty; Merchantability, Course Of Dealing, Usage Of Trade - Mich. Comp. Laws Section 440.2314
  (1) Unless excluded or modified (section 2316), a warranty that the goods shall be merchantable is implied in a contract for their sale if the ...
• Implied Warranty; Fitness For Particular Purpose - Mich. Comp. Laws Section 440.2315
  Where the seller at the time of contracting has reason to know any particular purpose for which the goods are required and that the ...
• Words Or Conduct Relevant To Creation Of Express Warranty And Tending To Negate Or Limit Warranty; Construction; Excluding Or Modifying Implied Warranty Of Merchantability And Implied Warranty Of Fitness; Language; Example; Limiting Remedies For Breach Of Warranty - Mich. Comp. Laws Section 440.2316
  (1) Words or conduct relevant to the creation of an express warranty and words or conduct tending to negate or limit warranty shall be construed ...
• Warranties; Cumulation And Conflict. - Mich. Comp. Laws Section 440.2317
  Warranties whether express or implied shall be construed as consistent with each other and as cumulative, but if such construction is unreasonable the intention ...
• Warranties; Third Party Beneficiaries. - Mich. Comp. Laws Section 440.2318
  A seller's warranty whether express or implied extends to any natural person who is in the family or household of his buyer or who ...
• F.O.B. And F.A.S. Terms - Mich. Comp. Laws Section 440.2319
  (1) Unless otherwise agreed the term F.O.B. (which means "free on board") at a named place, even though used only in connection with the stated ...
• C.I.F. And C. & F. Terms - Mich. Comp. Laws Section 440.2320
  ...
• C.I.F. And C. & F. Terms, Net Landed Weights, Delivered Weights, Out Turn; Warranty Of Condition On Arrival, Inspection Before Payment - Mich. Comp. Laws Section 440.2321
  Under a contract containing a term C.I.F. or C. & F. (1) Where the price is based on or is to be adjusted according ...
• Delivery Exship - Mich. Comp. Laws Section 440.2322
  (1) Unless otherwise agreed a term for delivery of goods "exship" (which means from the carrying vessel) or in equivalent language is not restricted to ...
• Overseas Shipment; Bill Of Lading, Form - Mich. Comp. Laws Section 440.2323
  (1) Where the contract contemplates overseas shipment and contains a term C.I.F. or C. & F. or F.O.B. vessel, the seller unless otherwise agreed must ...
• No Arrival, No Sale Terms - Mich. Comp. Laws Section 440.2324
  Under a term "no arrival, no sale" or terms of like meaning, unless otherwise agreed, (a) the seller must properly ship conforming goods and ...
• Letter Of Credit Or Banker's Credit; Confirmed Credit; Definitions - Mich. Comp. Laws Section 440.2325
  (1) Failure of the buyer seasonably to furnish an agreed letter of credit is a breach of the contract for sale. (2) The delivery to ...
• Transaction As "Sale On Approval" Or "Sale Or Return" If Delivered Goods Returnable By Buyer; Claims Of Creditors; Effect Of "Or Return" Term Of Contract For Sale; Work Of Fine Art Not Subject To Claims Of Art Dealer's Creditors; "Art Dealer,""Commission," And "Fine Art" Defined - Mich. Comp. Laws Section 440.2326
  (1) Unless otherwise agreed, if delivered goods may be returned by the buyer even though they conform to the contract, the transaction is: (a) A ...
• Sale On Approval; Sale Or Return; Special Incidents - Mich. Comp. Laws Section 440.2327
  (1) Under a sale on approval unless otherwise agreed (a) although the goods are identified to the contract the risk of loss and the title ...
• Sale By Auction; Sale With Reserve; Forced Sale - Mich. Comp. Laws Section 440.2328
  (1) In a sale by auction if goods are put up in lots each lot is the subject of a separate sale. (2) A sale ...
• Passing Of Title; Reservation For Security; Limited Application Of Section; Rejection - Mich. Comp. Laws Section 440.2401
  Each provision of this article with regard to the rights, obligations and remedies of the seller, the buyer, purchasers or other third parties applies ...
• Rights Of Seller's Creditors Against Sold Goods - Mich. Comp. Laws Section 440.2402
  (1) Except as provided in subsections (2) and (3), rights of unsecured creditors of the seller with respect to goods which have been identified to ...
• Purchasers And Transferees; Title, Rights, And Powers To Transfer Goods; Entrusting - Mich. Comp. Laws Section 440.2403
  (1) A purchaser of goods acquires all title which his transferor had or had power to transfer except that a purchaser of a limited interest ...
• Special Property And Insurable Interest In Goods; Identification Of Goods - Mich. Comp. Laws Section 440.2501
  (1) The buyer obtains a special property and an insurable interest in goods by identification of existing goods as goods to which the contract refers ...
• Special Property And Insurable Interest In Goods - Mich. Comp. Laws Section 440.2502
  (1) Subject to subsections (2) and (3) and even though the goods have not been shipped a buyer who has paid a part or all ...
• Tender Of Delivery By Seller; Shipment; Destination; Goods In Possession Of Bailee; Documents - Mich. Comp. Laws Section 440.2503
  (1) Tender of delivery requires that the seller put and hold conforming goods at the buyer's disposition and give the buyer any notification reasonably necessary ...
• Delivery By Shipment; Contract With Carrier, Documents, Notice - Mich. Comp. Laws Section 440.2504
  Where the seller is required or authorized to send the goods to the buyer and the contract does not require him to deliver them ...
• Shipment With And Without Reservation By Seller - Mich. Comp. Laws Section 440.2505
  (1) Where the seller has identified goods to the contract by or before shipment (a) his procurement of a negotiable bill of lading to his ...
• Financing Agency; Rights, Reimbursement. - Mich. Comp. Laws Section 440.2506
  (1) A financing agency by paying or purchasing for value a draft which relates to a shipment of goods acquires to the extent of the ...
• Tender Of Delivery; Conditions, Payment - Mich. Comp. Laws Section 440.2507
  (1) Tender of delivery is a condition to the buyer's duty to accept the goods and, unless otherwise agreed, to his duty to pay for ...
• Improper Delivery; Cure, Replacement. - Mich. Comp. Laws Section 440.2508
  (1) Where any tender or delivery by the seller is rejected because non-conforming and the time for performance has not yet expired, the seller may ...
• Risk Of Loss; Absence Of Breach. - Mich. Comp. Laws Section 440.2509
  (1) Where the contract requires or authorizes the seller to ship the goods by carrier (a) if it does not require him to deliver them ...
• Risk Of Loss; Effect Of Breach. - Mich. Comp. Laws Section 440.2510
  (1) Where a tender or delivery of goods so fails to conform to the contract as to give a right of rejection the risk of ...
• Payment By Buyer; Tender, Check. - Mich. Comp. Laws Section 440.2511
  (1) Unless otherwise agreed tender of payment is a condition to the seller's duty to tender and complete any delivery. (2) Tender of payment is ...
• Payment By Buyer; Inspection, Nonconforming Goods - Mich. Comp. Laws Section 440.2512
  (1) If the contract requires payment before inspection nonconformity of the goods does not excuse the buyer from so making payment unless (a) the nonconformity ...
• Inspection By Buyer; Time, Expenses, Place, Method - Mich. Comp. Laws Section 440.2513
  (1) Unless otherwise agreed and subject to subsection (3), where goods are tendered or delivered or identified to the contract for sale, the buyer has ...
• Documents; Delivery To Drawee On Acceptance Or Payment - Mich. Comp. Laws Section 440.2514
  Unless otherwise agreed documents against which a draft is drawn are to be delivered to the drawee on acceptance of the draft if it ...
• Adjustment Of Dispute; Preservation Of Evidence, Inspection - Mich. Comp. Laws Section 440.2515
  In furtherance of the adjustment of any claim or dispute (a) either party on reasonable notification to the other and for the purpose of ...
• Improper Delivery; Buyer's Rights. - Mich. Comp. Laws Section 440.2601
  Subject to the provisions of this article on breach in installment contracts (section 2612) and unless otherwise agreed under the sections on contractual limitations ...
• Rejection Of Goods - Mich. Comp. Laws Section 440.2602
  (1) Rejection of goods must be within a reasonable time after their delivery or tender. It is ineffective unless the buyer seasonably notifies the seller. ...
• Rejection Of Goods; Merchant Buyer's Duties - Mich. Comp. Laws Section 440.2603
  (1) Subject to any security interest in the buyer (subsection (3) of section 2711), when the seller has no agent or place of business at ...
• Rejection Of Goods; Buyer's Options. - Mich. Comp. Laws Section 440.2604
  Subject to the provisions of the immediately preceding section on perishables if the seller gives no instructions within a reasonable time after notification of ...
• Rejection Of Goods; Failure Of Buyer To Particularize Defect; Waiver - Mich. Comp. Laws Section 440.2605
  (1) The buyer's failure to state in connection with rejection a particular defect which is ascertainable by reasonable inspection precludes him from relying on the ...
• Acceptance Of Goods; Occurrence. - Mich. Comp. Laws Section 440.2606
  (1) Acceptance of goods occurs when the buyer (a) after a reasonable opportunity to inspect the goods signifies to the seller that the goods are ...
• Acceptance Of Goods; Effect; Notice Of Breach; Burden Of Establishing Breach; Notice Of Claim Or Litigation To Person Answerable - Mich. Comp. Laws Section 440.2607
  (1) The buyer must pay at the contract rate for any goods accepted. (2) Acceptance of goods by the buyer precludes rejection of the goods ...
• Acceptance Of Goods; Revocation, Time, Notice, Effect - Mich. Comp. Laws Section 440.2608
  (1) The buyer may revoke his acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to him if he has accepted ...
• Contract For Sale; Performance; Insecurity, Demand, Assurance Of Due Performance - Mich. Comp. Laws Section 440.2609
  (1) A contract for sale imposes an obligation on each party that the other's expectation of receiving due performance will not be impaired. When reasonable ...
• Anticipatory Repudiation - Mich. Comp. Laws Section 440.2610
  When either party repudiates the contract with respect to a performance not yet due the loss of which will substantially impair the value of ...
• Anticipatory Repudiation; Retraction. - Mich. Comp. Laws Section 440.2611
  (1) Until the repudiating party's next performance is due he can retract his repudiation unless the aggrieved party has since the repudiation cancelled or materially ...
• Installment Contract; Breach. - Mich. Comp. Laws Section 440.2612
  (1) An "installment contract" is one which requires or authorizes the delivery of goods in separate lots to be separately accepted, even though the contract ...
• Casualty To Identified Goods; Total Loss; Partial Loss, Option Of Buyer - Mich. Comp. Laws Section 440.2613
  Where the contract requires for its performance goods identified when the contract is made, and the goods suffer casualty without fault of either party ...
• Substituted Performance; Acceptance, Payment - Mich. Comp. Laws Section 440.2614
  (1) Where without fault of either party the agreed berthing, loading, or unloading facilities fail or an agreed type of carrier becomes unavailable or the ...
• Failure Of Presupposed Conditions; Nondelivery, Partial Delivery, Excuse - Mich. Comp. Laws Section 440.2615
  Except so far as a seller may have assumed a greater obligation and subject to the preceding section on substituted performance: (a) Delay in ...
• Procedure On Notice Claiming Excuse. - Mich. Comp. Laws Section 440.2616
  (1) Where the buyer receives notification of a material or indefinite delay or an allocation justified under the preceding section he may by written notification ...
• Collateral Or Ancillary Contracts; Remedies For Breach - Mich. Comp. Laws Section 440.2701
  Remedies for breach of any obligation or promise collateral or ancillary to a contract for sale are not impaired by the provisions of this ...
• Insolvency Of Buyer; Remedies Of Seller - Mich. Comp. Laws Section 440.2702
  (1) Where the seller discovers the buyer to be insolvent he may refuse delivery except for cash including payment for all goods theretofore delivered under ...
• Buyer's Wrongful Rejection, Revocation Of Acceptance, Or Nonpayment; Remedies Of Seller - Mich. Comp. Laws Section 440.2703
  Where the buyer wrongfully rejects or revokes acceptance of goods or fails to make a payment due on or before delivery or repudiates with ...
• Buyer's Wrongful Rejection, Revocation Of Acceptance, Or Nonpayment; Identification Of Goods; Resale; Salvage - Mich. Comp. Laws Section 440.2704
  (1) An aggrieved seller under the preceding section may (a) identify to the contract conforming goods not already identified if at the time he learned ...
• Stoppage Of Delivery In Transit Or Otherwise; Notice To Bailee - Mich. Comp. Laws Section 440.2705
  (1) The seller may stop delivery of goods in the possession of a carrier or other bailee when he discovers the buyer to be insolvent ...
• Buyer's Wrongful Rejection, Revocation Of Acceptance, Or Nonpayment; Resale By Seller; Recovery Of Loss; Notice To Buyer; Profit - Mich. Comp. Laws Section 440.2706
  (1) Under the conditions stated in section 2703 on seller's remedies, the seller may resell the goods concerned or the undelivered balance thereof. Where the ...
• Person In The Position Of A Seller. - Mich. Comp. Laws Section 440.2707
  (1) A "person in the position of a seller" includes as against a principal an agent who has paid or become responsible for the price ...
• Nonacceptance Or Repudiation; Seller's Damages - Mich. Comp. Laws Section 440.2708
  (1) Subject to subsection (2) and to the provisions of this article with respect to proof of market price (section 2723), the measure of damages ...
• Nonpayment; Action For Price, Damages - Mich. Comp. Laws Section 440.2709
  (1) When the buyer fails to pay the price as it becomes due the seller may recover, together with any incidental damages under the next ...
• Seller's Incidental Damages - Mich. Comp. Laws Section 440.2710
  Incidental damages to an aggrieved seller include any commercially reasonable charges, expenses or commissions incurred in stopping delivery, in the transportation, care and custody ...
• Nondelivery, Repudiation, Rejection, Or Revocation Of Acceptance; Buyer's Remedies; Security Interest In Goods - Mich. Comp. Laws Section 440.2711
  (1) Where the seller fails to make delivery or repudiates or the buyer rightfully rejects or justifiably revokes acceptance then with respect to any goods ...
• Cover; Procurement Of Substitute Goods; Buyer's Damages - Mich. Comp. Laws Section 440.2712
  (1) After a breach within the preceding section the buyer may "cover" by making in good faith and without unreasonable delay any reasonable purchase of ...
• Nondelivery Or Repudiation; Buyer's Damages - Mich. Comp. Laws Section 440.2713
  (1) Subject to the provisions of this article with respect to proof of market price (section 2723), the measure of damages for nondelivery or repudiation ...
• Accepted Goods; Buyer's Damages For Breach - Mich. Comp. Laws Section 440.2714
  (1) Where the buyer has accepted goods and given notification (subsection (3) of section 2607) he may recover as damages for any nonconformity of tender ...
• Buyer's Incidental And Consequential Damages - Mich. Comp. Laws Section 440.2715
  (1) Incidental damages resulting from the seller's breach include expenses reasonably incurred in inspection, receipt, transportation and care and custody of goods rightfully rejected, any ...
• Specific Performance; Replevin; Claim And Delivery - Mich. Comp. Laws Section 440.2716
  (1) Specific performance may be decreed where the goods are unique or in other proper circumstances. (2) The decree for specific performance may include such ...
• Deduction Of Damages From Price; Notice - Mich. Comp. Laws Section 440.2717
  The buyer on notifying the seller of his intention to do so may deduct all or any part of the damages resulting from any ...
• Liquidation And Limitation Of Damages; Restitution To Buyers - Mich. Comp. Laws Section 440.2718
  (1) Damages for breach by either party may be liquidated in the agreement but only at an amount which is reasonable in the light of ...
• Contractual Modification Or Limitation Of Remedies - Mich. Comp. Laws Section 440.2719
  (1) Subject to the provisions of subsections (2) and (3) of this section and of the preceding section on liquidation and limitation of damages (a) ...
• Cancellation, Rescission, Antecedent Breach - Mich. Comp. Laws Section 440.2720
  Unless the contrary intention clearly appears, expressions of "cancellation" or "rescission" of the contract or the like shall not be construed as a renunciation ...
• Remedies For Misrepresentation Or Fraud - Mich. Comp. Laws Section 440.2721
  Remedies for material misrepresentation or fraud include all remedies available under this article for nonfraudulent breach. Neither rescission or a claim for rescission of ...
• Right Of Action Against Third Party For Injury To Goods - Mich. Comp. Laws Section 440.2722
  Where a third party so deals with goods which have been identified to a contract for sale as to cause actionable injury to a ...
• Evidence Of Market Price; Time, Place, Surprise - Mich. Comp. Laws Section 440.2723
  (1) If an action based on anticipatory repudiation comes to trial before the time for performance with respect to some or all of the goods, ...
• Evidence Of Market Price; Market Quotations, Admissibility - Mich. Comp. Laws Section 440.2724
  Whenever the prevailing price or value of any goods regularly bought and sold in any established commodity market is in issue, reports in official ...
• Statute Of Limitations In Contracts For Sale; Contractual Reduction - Mich. Comp. Laws Section 440.2725
  (1) An action for breach of any contract for sale must be commenced within 4 years after the cause of action has accrued. By the ...
• Short Title - Mich. Comp. Laws Section 440.2801
  This article shall be known and may be cited as the "uniform commercial code - leases". History: Add. 1992, Act 101, Eff. Sept. 30, ...
• Applicability Of Article - Mich. Comp. Laws Section 440.2802
  This article applies to any transaction, regardless of form, that creates a lease. History: Add. 1992, Act 101, Eff. Sept. 30, 1992 ...
• Definitions; Sections; Principles Of Construction And Interpretation - Mich. Comp. Laws Section 440.2803
  (a) "Buyer in ordinary course of business" means a person who in good faith and without knowledge that the sale to him or her is ...
• Lease Requirements; Compliance With Applicable Statutes; Effect Of Noncompliance With Applicable Statute - Mich. Comp. Laws Section 440.2804
  (1) A lease, although subject to this article, is also subject to all of the following: (a) A certificate of title statute of this ...
• Certificate Of Title Statute; Compliance; Applicable Law - Mich. Comp. Laws Section 440.2805
  Subject to the provisions of sections 2A304(3) and 2A305(3), with respect to goods covered by a certificate of title issued under a statute of ...
• Choice Of Law; Judicial Forum - Mich. Comp. Laws Section 440.2806
  (1) If the law chosen by the parties to a consumer lease is that of a jurisdiction other than a jurisdiction in which the ...
• Discharge Of Claim Or Right Without Consideration - Mich. Comp. Laws Section 440.2807
  A claim or right arising out of an alleged default or breach of warranty may be discharged in whole or in part without consideration ...
• Unconscionable Contract, Clause, Or Conduct - Mich. Comp. Laws Section 440.2808
  (1) If a court, as a matter of law, finds a lease contract or any clause of a lease contract to have been unconscionable ...
• Power To Accelerate Payment Or Performance Or Require Collateral; Good Faith - Mich. Comp. Laws Section 440.2809
  (1) A term providing that 1 party or his or her successor in interest may accelerate payment or performance or require collateral or additional ...
• Motor Vehicle Or Trailer; Transaction Creating Sale Or Security Interest - Mich. Comp. Laws Section 440.2810
  With respect to a motor vehicle or trailer, notwithstanding any other provision of law, a transaction does not create a sale or security interest ...
• Lease Contract; Enforcement By Action Or Defense; Conditions; Sufficiency Of Description Or Writing; Determination Of Term - Mich. Comp. Laws Section 440.2851
  (1) A lease contract is not enforceable by way of action or defense unless 1 of the following applies: (a) The total payments to ...
• Final Written Expression; Parol Or Extrinsic Evidence - Mich. Comp. Laws Section 440.2852
  Terms with respect to which the confirmatory memoranda of the parties agree or which are otherwise set forth in a writing intended by the ...
• Effect Of Seal Affixed To Writing - Mich. Comp. Laws Section 440.2853
  The affixing of a seal to a writing evidencing a lease contract or an offer to enter into a lease contract does not render ...
• Lease Contract; Sufficiency To Show Agreement; Conduct; Open Terms - Mich. Comp. Laws Section 440.2854
  (1) A lease contract may be made in any manner sufficient to show agreement, including conduct by both parties which recognizes the existence of ...
• Firm Offer; Assurances To Hold Offer Open - Mich. Comp. Laws Section 440.2855
  An offer by a merchant to lease goods to or from another person in a signed writing that by its terms gives assurance it ...
• Offer To Make Lease Contract; Manner Of Acceptance; Lapse - Mich. Comp. Laws Section 440.2856
  (1) Unless otherwise unambiguously indicated by the language or circumstances, an offer to make a lease contract must be construed as inviting acceptance in ...
• Course Of Performance; Construction Of Terms; Waiver Or Modification - Mich. Comp. Laws Section 440.2857
  (1) If a lease contract involves repeated occasions for performance by either party with knowledge of the nature of the performance and opportunity for ...
• Lease Agreement; Modification Or Rescission; Waiver; Retraction - Mich. Comp. Laws Section 440.2858
  (1) An agreement modifying a lease contract needs no consideration to be binding. (2) A signed lease agreement that excludes modification or rescission except ...
• Supply Contract; Extension Of Benefits Of Supplier Promises And Of Warranties To Lessee; Limitations; Effect Of Modification Or Rescission; Retention Of Rights - Mich. Comp. Laws Section 440.2859
  (1) The benefit of a supplier's promises to the lessor under the supply contract and of all warranties, whether express or implied, including those ...
• Express Warranties; Creation - Mich. Comp. Laws Section 440.2860
  (1) Express warranties by the lessor are created as follows: (a) Any affirmation of fact or promise made by the lessor to the lessee ...
• Warranty Against Claim Or Interest In Goods; Claim By Way Of Infringement; Specifications Furnished By Lessee - Mich. Comp. Laws Section 440.2861
  (1) There is in a lease contract a warranty that for the lease term no person holds a claim to or interest in the ...
• Implied Warranty Of Merchantability; Other Implied Warranties - Mich. Comp. Laws Section 440.2862
  (1) Except in a finance lease, a warranty that the goods will be merchantable is implied in a lease contract if the lessor is ...
• Implied Warranty Of Fitness For A Particular Purpose - Mich. Comp. Laws Section 440.2863
  Except in a finance lease, if the lessor at the time the lease contract is made has reason to know of any particular purpose ...
• Limiting, Negating, Excluding, Or Modifying Warranties; Construction Of Words Or Conduct - Mich. Comp. Laws Section 440.2864
  (1) Words or conduct relevant to the creation of an express warranty and words or conduct tending to negate or limit a warranty must ...
• Inconsistent Warranties; Intent; Rules Of Construction - Mich. Comp. Laws Section 440.2865
  Warranties, whether express or implied, must be construed as consistent with each other and as cumulative, but if that construction is unreasonable, the intention ...
• Warranty; Extension To Persons In Family, Household, Or To Guest; Exclusion, Modification, Or Limitation - Mich. Comp. Laws Section 440.2866
  A warranty to or for the benefit of a lessee under this article, whether express or implied, extends to any natural person who is ...
• Lease Contract; Identification Of Goods; Absence Of Explicit Agreement - Mich. Comp. Laws Section 440.2867
  Identification of goods as goods to which a lease contract refers may be made at any time and in any manner explicitly agreed to ...
• Lease Contract; Insurable Interest In Goods - Mich. Comp. Laws Section 440.2868
  (1) A lessee obtains an insurable interest when existing goods are identified to the lease contract even though the goods identified are nonconforming and ...
• Risk Of Loss; Passage To Lessee - Mich. Comp. Laws Section 440.2869
  (1) Except in the case of a finance lease, risk of loss is retained by the lessor and does not pass to the lessee. ...
• Risk Of Loss; Repudiation; Default - Mich. Comp. Laws Section 440.2870
  (1) Where risk of loss is to pass to the lessee and the time of passage is not stated, then the following rules apply: ...
• Casualty To Identified Goods Before Delivery Or Risk Of Loss Passes - Mich. Comp. Laws Section 440.2871
  If a lease contract requires goods identified when the lease contract is made, and the goods suffer casualty without fault of the lessee, the ...
• Lease Contract; Enforcement - Mich. Comp. Laws Section 440.2901
  Except as otherwise provided in this article, a lease contract is effective and enforceable according to its terms between the parties, against purchasers of ...
• Applicability Of Article; Title Or Possession - Mich. Comp. Laws Section 440.2902
  Except as otherwise provided in this article, each provision of this article applies whether the lessor or a third party has title to the ...
• Security Interest; Creation; Transfer; Limitations; Rights And Remedies; Delegation Of Duties Or Performance; Liability; Prohibition - Mich. Comp. Laws Section 440.2903
  (1) As used in this section, "creation of a security interest" includes the sale of a lease contract that is subject to article 9, secured ...
• Transfer From Lessor To Subsequent Lessee; Power; Obtaining Rights In Ordinary Course Of Business; Entrustment; Certificate Of Title - Mich. Comp. Laws Section 440.2904
  (1) Subject to section 2A303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the ...
• Transfer From Lessee To Buyer Or Sublessee; Power; Rights; Buyer In Ordinary Course Of Business; Entrustment; Certificate Of Title - Mich. Comp. Laws Section 440.2905
  (1) Subject to section 2A303, a buyer or sublessee from the lessee of goods under an existing lease contract obtains, to the extent of ...
• Materials Or Services Provided With Respect To Goods Subject To Lease Contract; Lien; Priority; Exception - Mich. Comp. Laws Section 440.2906
  If a person in the ordinary course of his or her business furnishes services or materials with respect to goods subject to a lease ...
• Creditor Of Lessee; Rights; Taking Leasehold Interest Subject To Security Interest - Mich. Comp. Laws Section 440.2907
  (1) Except as otherwise provided in section 2A306, a creditor of a lessee takes subject to the lease contract. (2) Except as otherwise provided in ...
• Creditor Of Lessor Or Seller; Lease Or Sale Contract Treated As Void; Fraudulent Retention Or Possession Of Goods; Security For Preexisting Claim - Mich. Comp. Laws Section 440.2908
  (1) A creditor of a lessor in possession of goods subject to a lease contract may treat the lease contract as void if as ...
• Definitions; Lease Of Fixtures; Priority Of Security Interests; Right To Remove Goods; Reimbursement; Perfection By Filing Financing Statement As Fixture Filing - Mich. Comp. Laws Section 440.2909
  (1) As used in this section: (a) "Goods" are "fixtures" when they become so related to particular real estate that an interest in them arises ...
• Goods As Accessions; Priority Of Interests; Right To Remove Goods; Reimbursement - Mich. Comp. Laws Section 440.2910
  (1) Goods are accessions when they are installed in or affixed to other goods. (2) The interest of a lessor or a lessee under ...
• Subordination By Agreement - Mich. Comp. Laws Section 440.2911
  Nothing in this article prevents subordination by agreement by any person entitled to priority. History: Add. 1992, Act 101, Eff. Sept. 30, 1992 ...
• Lease Contract; Demanding Adequate Assurance Of Due Performance; Repudiation; Determination Of Adequacy; Acceptance Of Nonconforming Delivery Or Payment - Mich. Comp. Laws Section 440.2931
  (1) A lease contract imposes an obligation on each party that the other's expectation of receiving due performance will not be impaired. (2) If ...
• Repudiation Of Lease Contract - Mich. Comp. Laws Section 440.2932
  If either party repudiates a lease contract with respect to a performance not yet due under the lease contract, the loss of which performance ...
• Retraction Of Repudiation - Mich. Comp. Laws Section 440.2933
  (1) Until the repudiating party's next performance is due, the repudiating party can retract the repudiation unless, since the repudiation, the aggrieved party has ...
• Substituted Performance; Tender And Acceptance; Failure Of Payment Due To Government Regulation - Mich. Comp. Laws Section 440.2934
  (1) If without fault of the lessee, the lessor and the supplier, the agreed berthing, loading, or unloading facilities fail or the agreed type ...
• Substituted Performance; Delay Or Nondelivery; Allocating Production And Deliveries; Notification - Mich. Comp. Laws Section 440.2935
  Subject to section 2A404 on substituted performance, the following rules apply: (a) Delay in delivery or nondelivery in whole or in part by a ...
• Notification By Lessor Of Delay Or Allocation; Rights Of Lessee; Lapse Of Lease Contract - Mich. Comp. Laws Section 440.2936
  (1) If the lessee receives notification of a material or indefinite delay or an allocation justified under section 2A405, the lessee may by written ...
• Finance Lease Other Than Consumer Lease; Effect Of Lessee's Promises; Acceptance Of Goods By Lessee; Enforcement; Validity - Mich. Comp. Laws Section 440.2937
  (1) In the case of a finance lease that is not a consumer lease, the lessee's promises under the lease contract become irrevocable and ...
• Default; Rights And Remedies; Self-Help; Enforcement Covering Real Property And Goods - Mich. Comp. Laws Section 440.2951
  (1) Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this article. (2) ...
• Notice Of Default Or Enforcement - Mich. Comp. Laws Section 440.2952
  Except as otherwise provided in this article or the lease agreement, the lessor or lessee in default under the lease contract is not entitled ...
• Default; Rights And Remedies Provided In Lease Agreement; Optional Remedies; Liquidation, Limitation, Alteration Or Exclusion Of Consequential Damages; Collateral Or Ancillary Obligations And Promises - Mich. Comp. Laws Section 440.2953
  (1) Except as otherwise provided in this article, the lease agreement may include rights and remedies for default in addition to or in substitution ...
• Liquidation Of Damages; Reasonableness; Restitution; Setoff - Mich. Comp. Laws Section 440.2954
  (1) Damages payable by either party for default, or any other act or omission, including indemnity for loss or diminution of anticipated tax benefits ...
• Cancellation Or Termination Of Lease Contract; Discharge Of Executory Obligations; Material Misrepresentation Or Fraud; Rescission, Rejection, Or Return Of Goods As Bar To Rights Or Remedies - Mich. Comp. Laws Section 440.2955
  (1) On cancellation of the lease contract, all obligations that are still executory on both sides are discharged, but any right based on prior ...
• Default; Commencement And Accrual Of Action; Effect Of Termination; Applicability Of Section To Tolling Of Statute Of Limitations Or Causes Of Action Accrued Before Effective Date Of Article - Mich. Comp. Laws Section 440.2956
  (1) An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within 4 years after the cause ...
• Damages Based On Market Rent - Mich. Comp. Laws Section 440.2957
  (1) Damages based on market rent (section 2A519 or 2A528) are determined according to the rent for the use of the goods concerned for ...
• Default By Lessor; Rights And Remedies; Breach Of Warranty; Security Interest For Rent, Security, And Expenses; Deduction Of Damages From Rent Due - Mich. Comp. Laws Section 440.2958
  (1) If a lessor fails to deliver the goods in conformity to the lease contract (section 2A509) or repudiates the lease contract (section 2A402), ...
• Failure Of Goods Or Tender Or Delivery To Conform To Lease Contract; Rights Of Lessee; Effectiveness Of Rejection Of Goods - Mich. Comp. Laws Section 440.2959
  (1) Subject to the provisions of section 2A510 on default in installment lease contracts, if the goods or the tender or delivery fail in ...
• Installment Lease Contract; Rejecting Nonconforming Delivery; Conditions Requiring Acceptance; Reinstatement Of Lease Contract - Mich. Comp. Laws Section 440.2960
  (1) Under an installment lease contract a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that ...
• Rejection Of Goods In Merchant Lessee's Possession Or Control; Duties Of Merchant Lessee; Right To Reimbursement; Good Faith Conduct; Purchaser In Good Faith - Mich. Comp. Laws Section 440.2961
  (1) Subject to any security interest of a lessee (section 2A508(5)), if a lessor or a supplier has no agent or place of business ...
• Rejection Of Goods In Lessee's Possession; Rights And Obligations Of Lessee - Mich. Comp. Laws Section 440.2962
  (1) Except as otherwise provided with respect to goods that threaten to decline in value speedily (section 2A511) and subject to any security interest ...
• Rejection Of Goods Before Expiration Of Time For Performance; Rights Of Lessor Or Supplier - Mich. Comp. Laws Section 440.2963
  (1) If any tender or delivery by the lessor or the supplier is rejected because nonconforming and the time for performance has not yet ...
• Rejection Of Goods; Failure Of Lessee To State A Particular Defect Or Reserve Rights When Paying Consideration Against Documents; Effect - Mich. Comp. Laws Section 440.2964
  (1) In rejecting goods, a lessee's failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on ...
• Acceptance Of Goods; Opportunity To Inspect; Conduct; Accepting Part Of Unit - Mich. Comp. Laws Section 440.2965
  (1) Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and either of the following applies: (a) ...
• Acceptance Of Goods; Rent; Revocation Prohibited; Exception; Acceptance Of Tender; Effect Of Suit Against Lessee For Breach Of Warranty Or Other Obligation; Infringement - Mich. Comp. Laws Section 440.2966
  (1) A lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance for goods rightfully rejected or ...
• Revoking Acceptance Of Nonconforming Lot Or Commercial Unit; Conditions; Notification; Rights And Duties Of Lessee - Mich. Comp. Laws Section 440.2967
  (1) A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if the lessee ...
• Default By Lessor; Cover; Damages - Mich. Comp. Laws Section 440.2968
  (1) After default by a lessor under the lease contract of the type described in section 2A508(1) or, if agreed, after other default by ...
• Nondelivery Or Repudiation By Lessor; Rejection Or Revocation Of Acceptance By Lessee; Damages; Measure Of Damages For Market Rent, Nonconforming Tender Or Delivery, Or Breach Of Warranty - Mich. Comp. Laws Section 440.2969
  (1) Except as otherwise provided with respect to damages liquidated in the lease agreement (section 2A504) or otherwise determined pursuant to agreement of the ...
• Default By Lessor; Incidental And Consequential Damages - Mich. Comp. Laws Section 440.2970
  (1) Incidental damages resulting from a lessor's default include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of goods rightfully rejected ...
• Specific Performance - Mich. Comp. Laws Section 440.2971
  (1) Specific performance may be decreed if the goods are unique or in other proper circumstances. (2) A decree for specific performance may include ...
• Insolvency Of Lessor; Recovery Of Conforming Goods After Receipt Of First Installment Of Rent And Security - Mich. Comp. Laws Section 440.2972
  (1) Subject to subsection (2) and even though the goods have not been shipped, a lessee who has paid a part or all of ...
• Wrongful Rejection Or Revocation; Failure To Make Payment; Repudiation; Default; Rights Of Lessor; Damages; Cancellation Of Lease - Mich. Comp. Laws Section 440.2973
  (1) If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with respect to ...
• Additional Rights Of Lessor Aggrieved Under S 440.2973(1) - Mich. Comp. Laws Section 440.2974
  (1) A lessor aggrieved under section 2A523(1) may do any of the following: (a) Identify to the lease contract conforming goods not already identified ...
• Insolvency Of Lessee; Refusal To Deliver Goods; Possession, Availability, Or Disposition Of Goods; Proceeding Without Judicial Process - Mich. Comp. Laws Section 440.2975
  (1) If a lessor discovers the lessee to be insolvent, the lessor may refuse to deliver the goods. (2) After a default by the lessee ...
• Insolvency Of Lessee; Stopping Delivery Of Goods In Possession Of Bailee; Conditions; Notification; Liability For Damages; Obligation Of Carrier - Mich. Comp. Laws Section 440.2976
  (1) A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to ...
• Default; Disposition Of Goods; Damages Based On New Lease Agreement; Rights Of Subsequent Good Faith Buyer Or Lessee; Accounting For Profit - Mich. Comp. Laws Section 440.2977
  (1) After a default by a lessee under the lease contract of the type described in section 2A523(1) or 2A523(3)(a), or after the lessor ...
• Retention Or Disposition Of Goods By Lessor; Damages - Mich. Comp. Laws Section 440.2978
  (1) Except as otherwise provided with respect to damages liquidated in the lease agreement (section 2A504) or otherwise determined pursuant to agreement of the ...
• Default By Lessee; Damages; Holding Identified Goods For Remaining Lease Term; Disposition Of Goods By Lessor; Use And Possession Of Goods By Lessee; Rent - Mich. Comp. Laws Section 440.2979
  (1) After default by the lessee under the lease contract of the type described in section 2A523(1) or 2A523(3)(a) or, if agreed, after other ...
• Incidental Damages - Mich. Comp. Laws Section 440.2980
  Incidental damages to an aggrieved lessor include any commercially reasonable charges, expenses, or commissions incurred in stopping delivery, in the transportation, care and custody ...
• Third Party Causing Injury - Mich. Comp. Laws Section 440.2981
  (1) If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a ...
• Additional Damages - Mich. Comp. Laws Section 440.2982
  In addition to any other recovery permitted by this article or other law, the lessor may recover from the lessee an amount that will ...
• Short Title; Article - Mich. Comp. Laws Section 440.3101
  This article shall be known and may be cited as "uniform commercial code--negotiable instruments". History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. ...
• Scope; Limitations; Conflict Of Laws - Mich. Comp. Laws Section 440.3102
  (1) This article applies to negotiable instruments. It does not apply to money, to payment orders governed by article 4a, or to securities governed by ...
• Definitions; Principles Of Construction - Mich. Comp. Laws Section 440.3103
  (a) "Acceptor" means a drawee who has accepted a draft. (b) "Drawee" means a person ordered in a draft to make payment. (c) "Drawer" means ...
• Additional Definitions - Mich. Comp. Laws Section 440.3104
  (1) Except as provided in subsections (3) and (4), "negotiable instrument" means an unconditional promise or order to pay a fixed amount of money, with ...
• "Issue" And "Issuer" Defined; Effect Of Unissued Or Conditionally Issued Instrument - Mich. Comp. Laws Section 440.3105
  (1) "Issue" means the first delivery of an instrument by the maker or drawer, whether to a holder or nonholder, for the purpose of giving ...
• Unconditional Status Of Promise Or Order - Mich. Comp. Laws Section 440.3106
  (1) Except as provided in this section, for the purposes of section 3104(1), a promise or order is unconditional unless it states: (a) An express ...
• Payment In Foreign Money - Mich. Comp. Laws Section 440.3107
  Unless the instrument otherwise provides, an instrument that states the amount payable in foreign money may be paid in the foreign money or in ...
• Instrument Payable On Demand, At Definite Time, Or At Fixed Date - Mich. Comp. Laws Section 440.3108
  (1) A promise or order is "payable on demand" if it: (a) States that it is payable on demand or at sight, or otherwise indicates ...
• Promise Or Order; Payable On Demand; Payable At Definite Time; Instrument Payable At Fixed Date - Mich. Comp. Laws Section 440.3109
  (1) A promise or order is payable to the bearer if it does any of the following: (a) States that it is payable to bearer ...
• Determination Of Person Payable; Intent; Signature By Automated Means; Determining Holder; Instrument Payable To 2 Or More Persons - Mich. Comp. Laws Section 440.3110
  (1) The person to whom an instrument is initially payable is determined by the intent of the person, whether or not authorized, signing as, or ...
• Place Of Payment - Mich. Comp. Laws Section 440.3111
  Except as otherwise provided for items in article 4, an instrument is payable at the place of payment stated in the instrument. If no ...
• Interest - Mich. Comp. Laws Section 440.3112
  (1) Unless otherwise provided in the instrument: (a) An instrument is not payable with interest. (b) Interest on an interest-bearing instrument is payable from the ...
• Instrument Antedated, Postdated, Or Undated - Mich. Comp. Laws Section 440.3113
  (1) An instrument may be antedated or postdated. The date stated determines the time of payment if the instrument is payable at a fixed period ...
• Instrument; Contradictory Terms. - Mich. Comp. Laws Section 440.3114
  If an instrument contains contradictory terms, typewritten terms prevail over printed terms, handwritten terms prevail over both, and words prevail over numbers. History: 1962, ...
• Incomplete Instrument; Definition; Enforcement; Alteration; Burden - Mich. Comp. Laws Section 440.3115
  (1) "Incomplete instrument" means a signed writing, whether or not issued by the signer, the contents of which show at the time of signing that ...
• Joint And Several Liability - Mich. Comp. Laws Section 440.3116
  (1) Except as otherwise provided in the instrument, 2 or more persons who have the same liability on an instrument as makers, drawers, acceptors, endorsers ...
• Obligation Modified, Supplemented, Or Nullified By Separate Agreement - Mich. Comp. Laws Section 440.3117
  Subject to applicable law regarding exclusion of proof of contemporaneous or previous agreements, the obligation of a party to an instrument to pay the ...
• Action To Enforce Obligation; Commencement; Time Period; Other Actions - Mich. Comp. Laws Section 440.3118
  (1) Except as provided in subsection (5), an action to enforce the obligation of a party to pay a note payable at a definite time ...
• Notice Of Litigation To Answerable Third Party - Mich. Comp. Laws Section 440.3119
  In an action for breach of an obligation for which a third person is answerable over pursuant to this article or article 4, the ...
• Repealed. 1993, Act 130, Eff. Sept. 30, 1993 - Mich. Comp. Laws Section 440.3120-440.3122
  Compiler's Notes: The repealed sections pertained to instruments payable through or at a bank, accrual of cause of action, and interest. ...
• Negotiation; Definition; Transfer Of Possession - Mich. Comp. Laws Section 440.3201
  (1) "Negotiation" means a transfer of possession, whether voluntary or involuntary, of an instrument by a person other than the issuer to a person who ...
• Negotiation; Effective Although Subject To Rescission Or Other Remedies - Mich. Comp. Laws Section 440.3202
  (1) Negotiation is effective even if obtained (i) from an infant, a corporation exceeding its powers, or a person without capacity, (ii) by fraud, duress, ...
• Transfer Of Instrument; Delivery; Rights Of Transferee; Effect Of Transfer Of Less Than Entire Instrument - Mich. Comp. Laws Section 440.3203
  (1) An instrument is transferred when it is delivered by a person other than its issuer for the purpose of giving to the person receiving ...
• "Endorsement" And "Endorser" Defined; Transfer Of Security Interest Effective As Unqualified Endorsement; Instrument Payable To Name Other Than Holder - Mich. Comp. Laws Section 440.3204
  (1) "Endorsement" means a signature, other than that of a signer as maker, drawer, or acceptor, that alone or accompanied by other words is made ...
• Special Endorsement; Blank Endorsement; Conversion; "Anomalous Endorsement" Defined - Mich. Comp. Laws Section 440.3205
  (1) If an endorsement is made by the holder of an instrument, whether payable to an identified person or payable to bearer, and the endorsement ...
• Endorsement; Limitation; Condition; Words Indicating Collection By Bank; Endorsee As Agent, Trustee, Or Other Fiduciary; Purchaser As Holder In Due Course; Exception; Defense - Mich. Comp. Laws Section 440.3206
  (1) An endorsement limiting payment to a particular person or otherwise prohibiting further transfer or negotiation of the instrument is not effective to prevent further ...
• Instrument; Reacquisition - Mich. Comp. Laws Section 440.3207
  Reacquisition of an instrument occurs if it is transferred to a former holder, by negotiation or otherwise. A former holder who reacquires the instrument ...
• Repealed. 1993, Act 130, Eff. Sept. 30, 1993 - Mich. Comp. Laws Section 440.3208
  Compiler's Notes: The repealed section pertained to reacquisition of instruments. ...
• Instrument; Person Entitled To Enforce - Mich. Comp. Laws Section 440.3301
  "Person entitled to enforce" an instrument means (i) the holder of the instrument, (ii) a nonholder in possession of the instrument who has the ...
• Holder In Due Course; Notice Of Discharge As Effective Against Holder; Rights Of Holder; Time And Manner Of Notice; Section Subject To Law Limiting Status - Mich. Comp. Laws Section 440.3302
  (1) Subject to subsection (3) and section 3106(4), "holder in due course" means the holder of an instrument if both of the following apply: (a) ...
• Instrument Issued Or Transferred For Value; Consideration - Mich. Comp. Laws Section 440.3303
  (1) An instrument is issued or transferred for value if any of the following apply: (a) The instrument is issued or transferred for a promise ...
• Instruments Payable On Demand Or Payable At Definite Time As Overdue; Conditions - Mich. Comp. Laws Section 440.3304
  (1) An instrument payable on demand becomes overdue at the earliest of the following times: (a) On the day after the day demand for payment ...
• Right To Enforce Obligation; Defenses Or Claims Available - Mich. Comp. Laws Section 440.3305
  (1) Except as stated in subsection (2), the right to enforce the obligation of a party to pay an instrument is subject to the following: ...
• Instrument; Person Subject To Claim Of Property Or Possessory Right - Mich. Comp. Laws Section 440.3306
  A person taking an instrument, other than a person having rights of a holder in due course, is subject to a claim of a ...
• Fiduciary Duty; Breach - Mich. Comp. Laws Section 440.3307
  (1) As used in this section: (a) "Fiduciary" means an agent, trustee, partner, corporate officer or director, or other representative owing a fiduciary duty with ...
• Establishing Validity Of Signature; Burden; Right To Payment Subject To Defense Or Claim In Recoupment; Holder In Due Course Not Subject To Defense Or Claim - Mich. Comp. Laws Section 440.3308
  (1) In an action with respect to an instrument, the authenticity of, and authority to make, each signature on the instrument is admitted unless specifically ...
• Enforcement Of Instrument In Which Loss Of Possession Occurred - Mich. Comp. Laws Section 440.3309
  (1) A person not in possession of an instrument is entitled to enforce the instrument if (i) the person was in possession of the instrument ...
• Certified Check, Cashier's Check, Or Teller's Check; Discharge; Note Or Uncertified Check; Suspension Of Obligation; Other Instruments - Mich. Comp. Laws Section 440.3310
  (1) Unless otherwise agreed, if a certified check, cashier's check, or teller's check is taken for an obligation, the obligation is discharged to the same ...
• Discharge; Tender As Full Satisfaction Of Claim - Mich. Comp. Laws Section 440.3311
  (1) If a person against whom a claim is asserted proves that (i) that person in good faith tendered an instrument to the claimant as ...
• Definitions; Asserting Claim To Amount Of Check By Communication To Obligated Bank; Delivery Of Declaration Of Loss; Compliance With Subsection (2); Duties Of Claimant If Presentment By Holder In Due Course; Rights Of Claimant With Respect To Check - Mich. Comp. Laws Section 440.3312
  (1) As used in this section: (a) "Check" means a cashier's check, teller's check, or certified check. (b) "Claimant" means a person who claims the ...
• Liability; Signature - Mich. Comp. Laws Section 440.3401
  (1) A person is not liable on an instrument unless (i) the person signed the instrument, or (ii) the person is represented by an agent ...
• Liability Of Parties; Signature By Authorized Representative - Mich. Comp. Laws Section 440.3402
  (1) If a person acting, or purporting to act, as a representative signs an instrument by signing either the name of the represented person or ...
• Unauthorized Signature; Effect. - Mich. Comp. Laws Section 440.3403
  (1) Unless otherwise provided in this article or article 4, an unauthorized signature is ineffective except as the signature of the unauthorized signer in favor ...
• Imposter; Inducing Issuance Of Instrument; Endorsement In Name Of Payee; Failure To Exercise Ordinary Care - Mich. Comp. Laws Section 440.3404
  (1) If an imposter, by use of the mails or otherwise, induces the issuer of an instrument to issue the instrument to the imposter, or ...
• Definitions; Fraudulent Endorsement By Employee Or Person Acting In Concert With Employee - Mich. Comp. Laws Section 440.3405
  (1) As used in this section: (a) "Employee" includes an independent contractor and employee of an independent contractor retained by the employer. (b) "Fraudulent endorsement" ...
• Failure To Exercise Ordinary Care Contributing To Alteration Or Forged Instrument; Allocation Of Loss; Burden Of Proof - Mich. Comp. Laws Section 440.3406
  (1) A person whose failure to exercise ordinary care substantially contributes to an alteration of an instrument or to the making of a forged signature ...
• Alteration; Definition; Discharge Of Party Affected; Enforcement Of Rights - Mich. Comp. Laws Section 440.3407
  (1) "Alteration" means (i) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or (ii) an ...
• Check Or Draft; Operation As Assignment. - Mich. Comp. Laws Section 440.3408
  A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its ...
• Acceptance Of Draft; Definition; Operation; "Certified Check" Defined; Refusal To Certify - Mich. Comp. Laws Section 440.3409
  (1) "Acceptance" means the drawee's signed agreement to pay a draft as presented. It must be written on the draft and may consist of the ...
• Acceptance Varying From Terms Of Draft - Mich. Comp. Laws Section 440.3410
  (1) If the terms of a drawee's acceptance vary from the terms of the draft as presented, the holder may refuse the acceptance and treat ...
• Obligated Bank; Definition; Refusal To Pay Check; Expenses Or Damages Not Recoverable - Mich. Comp. Laws Section 440.3411
  (1) As used in this section, "obligated bank" means the acceptor of a certified check or the issuer of a cashier's check or teller's check ...
• Note, Cashier's Check, Or Other Draft; Obligation Of Issuer To Pay According To Terms - Mich. Comp. Laws Section 440.3412
  The issuer of a note or cashier's check or other draft drawn on the drawer is obliged to pay the instrument (i) according to ...
• Draft; Obligation To Pay According To Terms; Amount - Mich. Comp. Laws Section 440.3413
  (1) The acceptor of a draft is obliged to pay the draft (i) according to its terms at the time it was accepted, even though ...
• Applicability Of Section; Unaccepted Draft; Dishonor; Payment According To Terms; Acceptance By Bank; Discharge Of Drawer; Obligation Of Drawer If Acceptor Not Bank And Draft Dishonored; Disclaimer Of Liability; Suspension Of Payments After Expiration Of 30-Day Period - Mich. Comp. Laws Section 440.3414
  (1) This section does not apply to cashier's checks or other drafts drawn on the drawer. (2) If an unaccepted draft is dishonored, the drawer ...
• Dishonored Instrument; Obligation And Liability Of Endorser - Mich. Comp. Laws Section 440.3415
  (1) Subject to subsections (2), (3), (4), and (5) and to section 3419(4), if an instrument is dishonored, an endorser is obliged to pay the ...
• Transfer Of Instrument For Consideration; Endorsement; Warranties - Mich. Comp. Laws Section 440.3416
  (1) A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by endorsement, to any subsequent transferee all ...
• Presentment Of Draft; Rights Of Parties - Mich. Comp. Laws Section 440.3417
  (1) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the person ...
• Payment Or Acceptance By Mistake. - Mich. Comp. Laws Section 440.3418
  (1) Except as provided in subsection (3), if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken ...
• Accommodation Parties - Mich. Comp. Laws Section 440.3419
  (1) If an instrument is issued for value given for the benefit of a party to the instrument ("accommodated party") and another party to the ...
• Conversion - Mich. Comp. Laws Section 440.3420
  (1) The law applicable to conversion of personal property applies to instruments. An instrument is also converted if it is taken by transfer, other than ...
• Presentment; Definition; Manner; Rights Of Party To Whom Presentment Is Made - Mich. Comp. Laws Section 440.3501
  (1) "Presentment" means a demand made by or on behalf of a person entitled to enforce an instrument (i) to pay the instrument made to ...
• Notes And Drafts; Dishonor - Mich. Comp. Laws Section 440.3502
  (1) Dishonor of a note is governed by the following rules: (a) If the note is payable on demand, the note is dishonored if presentment ...
• Notice Of Dishonor; Manner; Sufficiency; Time Periods - Mich. Comp. Laws Section 440.3503
  (1) The obligation of an endorser stated in section 3415(2) and the obligation of a drawer stated in section 3414(4) may not be enforced unless ...
• Presentment, Notice Of Dishonor, Or Delay In Giving Notice Of Dishonor; Conditions For Excuse - Mich. Comp. Laws Section 440.3504
  (1) Presentment for payment or acceptance of an instrument is excused if (i) the person entitled to present the instrument cannot with reasonable diligence make ...
• Admissible Evidence Creating Presumption Of Dishonor; Protest - Mich. Comp. Laws Section 440.3505
  (1) The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated: (a) A document regular in ...
• Repealed. 1993, Act 130, Eff. Sept. 30, 1993 - Mich. Comp. Laws Section 440.3506-440.3511
  Compiler's Notes: The repealed sections pertained to presentment, dishonor, notice of dishonor, and protest. ...
• Discharge; Effect Against Holder In Due Course - Mich. Comp. Laws Section 440.3601
  (1) The obligation of a party to pay the instrument is discharged as stated in this article or by an act or agreement with the ...
• Discharge; Payment - Mich. Comp. Laws Section 440.3602
  (1) Subject to subsection (2), an instrument is paid to the extent payment is made (i) by or on behalf of a party obliged to ...
• Tender Of Payment; Effect; Refusal Of Tender As Discharge; Interest; Obligor Ready And Able To Pay On Due Date - Mich. Comp. Laws Section 440.3603
  (1) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of ...
• Discharge By Intentional Voluntary Act; Canceling Or Striking Out Endorsement - Mich. Comp. Laws Section 440.3604
  (1) A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument (i) by ...
• Endorser To Include Certain Drawer; Agreement To Extend Due Date Or To A Material Modification; Discharge Of Endorser Or Accommodation Party; Obligation Secured By Interest In Collateral; Impairing Value Of Interest In Collateral; Knowledge Of Accommodation; Consent Or Waiver Of Discharge. - Mich. Comp. Laws Section 440.3605
  (1) In this section, the term "endorser" includes a drawer having the obligation described in section 3414(4). (2) Discharge, under section 3604, of the obligation ...
• Repealed. 1993, Act 130, Eff. Sept. 30, 1993 - Mich. Comp. Laws Section 440.3606
  Compiler's Notes: The repealed section pertained to discharge, impairment of recourse or of collateral, and express reservation. ...
• Repealed. 1993, Act 130, Eff. Sept. 30, 1993 - Mich. Comp. Laws Section 440.3701
  Compiler's Notes: The repealed section pertained to international sight draft and letter of advice. ...
• Repealed. 1993, Act 130, Eff. Sept. 30, 1993 - Mich. Comp. Laws Section 440.3801-440.3805
  Compiler's Notes: The repealed sections pertained to negotiation, endorsement, acceptance, payment, and discharge of drafts; effect of instrument on underlying obligation; notice of litigation ...
• Uniform Commercial Code--Bank Deposits And Collections; Short Title - Mich. Comp. Laws Section 440.4101
  This article shall be known and may be cited as uniform commercial code--bank deposits and collections. History: 1962, Act 174, Eff. Jan. 1, 1964 ...
• Conflict Of Laws; Provisions Applicable. - Mich. Comp. Laws Section 440.4102
  (1) To the extent that items within this article are also within articles 3 and 8, they are subject to those articles. If there is ...
• Variation By Agreement; Measure Of Damages; Action Constituting Ordinary Care - Mich. Comp. Laws Section 440.4103
  (1) The effect of the provisions of this article may be varied by agreement but the parties to the agreement cannot disclaim a bank's responsibility ...
• Definitions Used In Article - Mich. Comp. Laws Section 440.4104
  (a) "Account" means any depositor credit account with a bank, including a demand, time, savings, passbook, share draft, or like account, other than an account ...
• Additional Definitions - Mich. Comp. Laws Section 440.4105
  As used in this article unless the context otherwise requires: (a) "Bank" means a person engaged in the business of banking, including a saving ...
• "Payable Through" And "Payable At" Explained; Bank As Collecting Bank - Mich. Comp. Laws Section 440.4106
  (1) If an item states that it is "payable through" a bank identified in the item, (i) the item designates the bank as a collecting ...
• Bank Branch Or Separate Office As Separate Bank - Mich. Comp. Laws Section 440.4107
  A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the ...
• Time Of Receipt Of Items - Mich. Comp. Laws Section 440.4108
  (1) For the purpose of allowing time to process items, prove balances and make the necessary entries on its books to determine its position for ...
• Collecting Bank; Waiving, Modifying, Or Extending Time Limits; Excuse For Delay - Mich. Comp. Laws Section 440.4109
  (1) Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than ...
• "Agreement For Electronic Presentment" Defined; Presentment Notice - Mich. Comp. Laws Section 440.4110
  (1) "Agreement for electronic presentment" means an agreement, clearing-house rule, or Federal Reserve regulation or operating circular, providing that presentment of an item may be ...
• Commencement Of Action Under Article; Time Period - Mich. Comp. Laws Section 440.4111
  An action to enforce an obligation, duty, or right arising under this article must be commenced within 3 years after the cause of action ...
• Agency Status Of Banks; Provisional Status Of Credits; Applicability Of Article; Endorsement With Pay Any Bank. - Mich. Comp. Laws Section 440.4201
  (1) Unless a contrary intent clearly appears and before the time that a settlement given by a collecting bank for an item is or becomes ...
• Collecting Bank; Duties; Exercising Ordinary Care; Liability - Mich. Comp. Laws Section 440.4202
  (1) A collecting bank must exercise ordinary care in all of the following: (a) Presenting an item or sending it for presentment. (b) Sending notice ...
• Collecting Bank; Instructions From Transferor - Mich. Comp. Laws Section 440.4203
  Subject to article 3 concerning conversion of instruments (section 3420) and restrictive endorsements (section 3206) only a collecting bank's transferor can give instructions that ...
• Collecting Bank; Methods Of Sending Items; Presentment - Mich. Comp. Laws Section 440.4204
  (1) A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of ...
• Depositary Bank; Item Delivered By Customer For Collection - Mich. Comp. Laws Section 440.4205
  If a customer delivers an item to a depositary bank for collection, then both of the following apply: (a) The depositary bank becomes a ...
• Transfer Between Banks - Mich. Comp. Laws Section 440.4206
  Any agreed method which identifies the transferor bank is sufficient for the item's further transfer to another bank. History: 1962, Act 174, Eff. Jan. ...
• Warranties Of Customer And Collecting Bank On Transfer Of Items; Time For Claims - Mich. Comp. Laws Section 440.4207
  (1) A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any subsequent ...
• Presentment Of Unaccepted Or Dishonored Draft; Warranties Of Person Obtaining Payment And Prior Transferor; Discharge; Accrual Of Cause Of Action - Mich. Comp. Laws Section 440.4208
  (1) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the person ...
• Electronic Presentment; Encoding Of Information And Retaining Items; Warranties; Recovery Of Damages, Expenses, And Loss Of Interest - Mich. Comp. Laws Section 440.4209
  (1) A person who encodes information on or with respect to an item after issue warrants to any subsequent collecting bank and to the payor ...
• Security Interest Of Collecting Bank In Items, Accompanying Documents, Or Proceeds - Mich. Comp. Laws Section 440.4210
  (1) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of any of the following: (a) In ...
• Bank With Security Interest As Holder In Due Course - Mich. Comp. Laws Section 440.4211
  For purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security ...
• Presentment By Notice Of Item Not Payable By, Through, Or At A Bank; Treating Item As Dishonored - Mich. Comp. Laws Section 440.4212
  (1) Unless otherwise instructed, a collecting bank may present an item not payable by, through or at a bank by sending to the party to ...
• Settlement; Medium And Time - Mich. Comp. Laws Section 440.4213
  (1) With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearing-house rules, ...
• Right To Charge-Back Or Refund. - Mich. Comp. Laws Section 440.4214
  (1) If a collecting bank has made provisional settlement with its customer for an item and itself fails by reason of dishonor, suspension of payments ...
• Final Payment Of Items By Payor Bank; Final Credit; Availability Of Credit For Withdrawal - Mich. Comp. Laws Section 440.4215
  (1) An item is finally paid by a payor bank when the bank has first done any of the following: (a) Paid the item in ...
• Payor Or Collecting Bank; Suspension Of Payments - Mich. Comp. Laws Section 440.4216
  (1) If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has not ...
• Demand Items; Recovery Of Settlement; Time Of Dishonor; Return Of Items - Mich. Comp. Laws Section 440.4301
  (1) If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter before ...
• Payor Bank; Accountability Upon Presentment And Receipt Of Item; Defenses - Mich. Comp. Laws Section 440.4302
  (1) If an item is presented on and received by a payor bank the bank is accountable for the amount of the following: (a) A ...
• Payor Bank; Items Subject To Knowledge Notice, Stop-Payment Order, Legal Process, Or Setoff; Order In Which Times May Be Handled - Mich. Comp. Laws Section 440.4303
  (1) Any knowledge, notice, or stop-payment order received by, legal process served upon or setoff exercised by a payor bank comes too late to terminate, ...
• Payor Bank; Charge Against Customer's Account - Mich. Comp. Laws Section 440.4401
  (1) A bank may charge against the account of a customer an item that is properly payable from that account even though the charge creates ...
• Payor Bank; Wrongful Dishonor; Liability To Customer; Determination Of Account Balance - Mich. Comp. Laws Section 440.4402
  (1) Except as otherwise provided in this article, a payor bank wrongfully dishonors an item if it dishonors an item that is properly payable, but ...
• Customer's Right To Stop Payment; Lapse And Renewal; Burden Of Proof Of Loss - Mich. Comp. Laws Section 440.4403
  (1) A customer or any person authorized to draw on the account if there is more than 1 person may stop payment of any item ...
• Payment Of Checks More Than 6 Months Old - Mich. Comp. Laws Section 440.4404
  A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is ...
• Death Or Incompetence Of Customer. - Mich. Comp. Laws Section 440.4405
  (1) A payor or collecting bank's authority to accept, pay or collect an item or to account for proceeds of its collection if otherwise effective ...
• Statement Of Account; Identification Of Items Paid; Retention Of Items Or Copies; Customer's Duty To Discover And Report Unauthorized Signature Or Alteration; Failure To Comply With Subsection (3); Failure Of Bank To Exercise Ordinary Care In Paying Item; Time Limitation - Mich. Comp. Laws Section 440.4406
  (1) A bank that sends or makes available to a customer a statement of account showing payment of items for the account shall either return ...
• Improper Payment; Subrogation Of Payor Bank - Mich. Comp. Laws Section 440.4407
  If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has ...
• Documentary Draft; Presentment, Notice Of Dishonor - Mich. Comp. Laws Section 440.4501
  A bank which takes a documentary draft for collection must present or send the draft and accompanying documents for presentment and upon learning that ...
• Documentary Draft; Presentment On Arrival Of Goods, Refusal For Non-Arrival; Notice To Transferor - Mich. Comp. Laws Section 440.4502
  When a draft or the relevant instructions require presentment "on arrival", "when goods arrive" or the like, the collecting bank need not present until ...
• Documentary Draft; Responsibility Of Presenting Bank For Documents And Goods; Report Of Reasons For Dishonor; Referees; Expenses - Mich. Comp. Laws Section 440.4503
  Unless otherwise instructed and except as provided in article 5 a bank presenting a documentary draft (a) must deliver the documents to the drawee ...
• Documentary Draft; Presenting Bank's Right To Deal With Goods; Lien For Expenses - Mich. Comp. Laws Section 440.4504
  (1) A presenting bank which, following the dishonor of a documentary draft, has seasonably requested instructions but does not receive them within a reasonable time ...
• Short Title - Mich. Comp. Laws Section 440.4601
  This article shall be known and may be cited as "uniform commercial code--funds transfers". History: Add. 1992, Act 100, Imd. Eff. June 25, 1992 ...
• Applicability Of Article - Mich. Comp. Laws Section 440.4602
  Except as otherwise provided in section 4A108, this article applies to funds transfers defined in section 4A104. History: Add. 1992, Act 100, Imd. Eff. ...
• Definitions; Instruction As A Separate Payment Order; Issuance Of Payment Order - Mich. Comp. Laws Section 440.4603
  (1) As used in this article: (a) "Payment order" means an instruction of a sender to a receiving bank, transmitted orally, electronically, or in ...
• Definitions - Mich. Comp. Laws Section 440.4604
  As used in this article: (a) "Funds transfer" means the series of transactions, beginning with the originator's payment order, made for the purpose of ...
• Definitions; Sections Where Other Definitions Appear - Mich. Comp. Laws Section 440.4605
  (a) "Authorized account" means a deposit account of a customer in a bank designated by the customer as a source of payment of payment orders ...
• Payment Order Or Communication Canceling Or Amending Payment Order; Determining Time Of Receipt - Mich. Comp. Laws Section 440.4606
  (1) The time of receipt of a payment order or communication canceling or amending a payment order is determined by the rules applicable to ...
• Regulations Of Federal Reserve System As Superseding Article - Mich. Comp. Laws Section 440.4607
  Regulations of the board of governors of the federal reserve system and operating circulars of the federal reserve banks supersede any inconsistent provision of ...
• Inapplicability Of Article - Mich. Comp. Laws Section 440.4608
  This article does not apply to a funds transfer any part of which is governed by the electronic fund transfer act of 1978, Title ...
• "Security Procedure" Defined - Mich. Comp. Laws Section 440.4701
  "Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of (i) verifying that a payment ...
• Authorized Payment Order; Verification By Security Procedure; Determination Of Commercial Reasonableness; "Sender" Defined; Applicability Of Section To Amendments And Cancellations Of Payment Orders; Agreement To Vary Rights And Obligations Prohibited - Mich. Comp. Laws Section 440.4702
  (1) A payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the ...
• Payment Order Effective Pursuant To S 440.4702; Application Of Rules; Applicability Of Section To Amendments Of Payment Orders - Mich. Comp. Laws Section 440.4703
  (1) If an accepted payment order is not, under section 4A202(1), an authorized order of a customer identified as sender, but is effective as ...
• Receiving Bank; Acceptance Of Unauthorized Or Nonenforceable Payment; Refund; Interest; Recovery; Reasonable Time Fixed By Agreement; Agreement To Vary Obligation To Refund Payment Prohibited - Mich. Comp. Laws Section 440.4704
  (1) If a receiving bank accepts a payment order issued in the name of its customer as sender which is (i) not authorized and ...
• Erroneous Payment Order; Duty And Liability Of Sender Upon Notification From Receiving Bank; Applicability Of Section To Amendments To Payment Orders - Mich. Comp. Laws Section 440.4705
  (1) If an accepted payment order was transmitted pursuant to a security procedure for the detection of error and the payment order (i) erroneously ...
• Transmitting Payment Order To Funds-Transfer System Or Other Third-Party Communication System; System As Agent; Effect Of Discrepancy; Applicability Of Section - Mich. Comp. Laws Section 440.4706
  (1) If a payment order addressed to a receiving bank is transmitted to a funds-transfer system or other third-party communication system for transmittal to ...
• Payment Order; Identification Of Beneficiary; Nonexistent Or Unidentifiable Person Or Account; Name And Number Identifying Different Persons; Inconsistent Identification By Name And Number; Recovery Of Amount Paid - Mich. Comp. Laws Section 440.4707
  (1) Subject to subsection (2), if, in a payment order received by the beneficiary's bank, the name, bank account number, or other identification of ...
• Payment Order; Identification Of Intermediary Or Beneficiary Bank; Rules - Mich. Comp. Laws Section 440.4708
  (1) The following rules apply to a payment order identifying an intermediary bank or the beneficiary's bank only by an identifying number: (a) The ...
• Acceptance Of Payment Order - Mich. Comp. Laws Section 440.4709
  (1) Subject to subsection (4), a receiving bank other than the beneficiary's bank accepts a payment order when it executes the order. (2) Subject ...
• Rejection Of Payment Order - Mich. Comp. Laws Section 440.4710
  (1) A payment order is rejected by the receiving bank by a notice of rejection transmitted to the sender orally, electronically, or in writing. ...
• Communication By Sender Canceling Or Amending Payment Order; Method Of Transmission; Effectiveness; Liability Of Sender For Loss And Expenses; Revocation By Death Or Legal Incapacity; Effectiveness Of Funds-Transfer System Rule - Mich. Comp. Laws Section 440.4711
  (1) A communication of the sender of a payment order canceling or amending the order may be transmitted to the receiving bank orally, electronically, ...
• Receiving Bank; Failure To Accept Payment Order; Liability For Breach Of Agreement To Accept Payment Order - Mich. Comp. Laws Section 440.4712
  If a receiving bank fails to accept a payment order that it is obliged by express agreement to accept, the bank is liable for ...
• Execution Of Payment Order; "Execution Date" Defined - Mich. Comp. Laws Section 440.4801
  (1) A payment order is "executed" by the receiving bank when it issues a payment order intended to carry out the payment order received ...
• Receiving Bank; Acceptance Of Payment Order Pursuant To S 440.4709(1); Obligations Of Bank To Execute Order; Use Of Funds-Transfer System; Transmission By First-Class Mail Or Reasonable Means; Payment Of Charges For Services And Expenses - Mich. Comp. Laws Section 440.4802
  (1) Except as provided in subsections (2) through (4), if the receiving bank accepts a payment order pursuant to section 4A209(1), the bank has ...
• Receiving Bank; Payment Of Sender's Order Pursuant To S 440.4902(3); Effect Of Erroneous Payment Order; Applicability Of Subsection (2); Obligation Of Sender To Pay Payment Order; Recovery By Issuer From Beneficiary - Mich. Comp. Laws Section 440.4803
  (1) A receiving bank that executes the payment order of the sender by issuing a payment order in an amount greater than the amount ...
• Notification From Receiving Bank Of Erroneously Executed Payment Order; Duties Of Sender; Obligation To Pay Interest; Recovery By Bank Prohibited - Mich. Comp. Laws Section 440.4804
  If the sender of a payment order that is erroneously executed as stated in section 4A303 receives notification from the receiving bank that the ...
• Receiving Bank; Payment Delay; Interest; Liability To Originator For Expenses Resulting From Improper Execution; Recovery Of Damages; Failure To Execute Pursuant To Express Agreement; Attorney Fees; Liability Of Bank Under Subsections (1) And (2) Not Varied By Agreement - Mich. Comp. Laws Section 440.4805
  (1) If a funds transfer is completed but execution of a payment order by the receiving bank in breach of section 4A302 results in ...
• "Payment Date" Defined - Mich. Comp. Laws Section 440.4901
  "Payment date" of a payment order means the day on which the amount of the order is payable to the beneficiary by the beneficiary's ...
• Payment Order Issued To Beneficiary Or Receiving Bank Subject To SS 440.4705 And 440.4707; Payment By Sender; Refund; Right Of Sender Executing Payment Order To Receive Or Retain Payment; Right Of Sender To Be Excused From Obligation To Pay Or Receive Refund Not Varied By Agreement - Mich. Comp. Laws Section 440.4902
  (1) This section is subject to sections 4A205 and 4A207. (2) With respect to a payment order issued to the beneficiary's bank, acceptance of ...
• Sender's Obligation Under S 440.4902 To Pay Receiving Bank; Payment Requirements; Final Settlement; Satisfaction Of Sender's Payment Obligation - Mich. Comp. Laws Section 440.4903
  (1) Payment of the sender's obligation under section 4A402 to pay the receiving bank occurs as follows: (a) If the sender is a bank, ...
• Beneficiary Bank; Acceptance Of Payment Order Subject To SS 440.4711(5), 440.4905(4), And 440.4905(5); Payment Due Date; Refusal Of Bank To Pay After Demand; Recovery Of Damages; Instruction To Pay To Beneficiary's Account; Notice; Interest; Attorney Fees; Rights Of Beneficiary Pursuant To Agreement Or Funds-Transfer System Rule - Mich. Comp. Laws Section 440.4904
  (1) Subject to sections 4A211(5), 4A405(4), and 4A405(5), if a beneficiary's bank accepts a payment order, the bank is obliged to pay the amount ...
• Beneficiary Bank; Crediting Account Of Beneficiary Of Payment Order; Payment Of Bank Obligations Under S 440.4904(1); Time Of Payment; Condition To Payment Or Agreement; Provisional Payments To Beneficiary Under Funds-Transfer System Rule; Refund; Applicability Of Subsection (5) To Certain Funds Transfer - Mich. Comp. Laws Section 440.4905
  (1) If the beneficiary's bank credits an account of the beneficiary of a payment order, payment of the bank's obligation under section 4A404(1) occurs ...
• Originator Of Funds Transfer; Conditions For Payment To Beneficiary; Satisfaction And Discharge Of Obligation; Determination; Rights Varied By Agreement - Mich. Comp. Laws Section 440.4906
  (1) Subject to sections 4A211(5), 4A405(4), and 4A405(5), the originator of a funds transfer pays the beneficiary of the originator's payment order (i) at ...
• Rights And Obligations Of Party To Funds Transfer Varied By Agreement Of Affected Party; "Funds-Transfer System Rule" Defined - Mich. Comp. Laws Section 440.4951
  (1) Except as otherwise provided in this article, the rights and obligations of a party to a funds transfer may be varied by agreement ...
• "Creditor Process" Defined And Explained - Mich. Comp. Laws Section 440.4952
  (1) As used in this section, "creditor process" means levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by or on behalf ...
• Powers Of Court With Respect To Funds Transfer - Mich. Comp. Laws Section 440.4953
  For proper cause and in compliance with applicable law, a court may restrain (i) a person from issuing a payment order to initiate a ...
• Receiving Bank; Authority To Charge Sender's Account; Credits - Mich. Comp. Laws Section 440.4954
  (1) If a receiving bank has received more than 1 payment order of the sender or 1 or more payment orders and other items ...
• Customer Objection To Payment; Notification Required - Mich. Comp. Laws Section 440.4955
  If a receiving bank has received payment from its customer with respect to a payment order issued in the name of the customer as ...
• Receiving Bank; Determination Of Interest Payable - Mich. Comp. Laws Section 440.4956
  (1) If, under this article, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the ...
• Rights And Obligations Of Parties; Application Of Choice Of Law - Mich. Comp. Laws Section 440.4957
  (1) The following rules apply unless the affected parties otherwise agree or subsection (3) applies: (a) The rights and obligations between the sender of ...
• Uniform Commercial Code--Letters Of Credit; Short Title Of Article - Mich. Comp. Laws Section 440.5101
  This article may be cited as uniform commercial code--letters of credit. History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1998, Act 488, ...
• Definitions - Mich. Comp. Laws Section 440.5102
  (a) "Adviser" means a person who, at the request of the issuer, a confirmer, or another adviser, notifies or requests another adviser to notify the ...
• Letters Of Credit; Scope Of Article - Mich. Comp. Laws Section 440.5103
  (1) This article applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit. (2) The statement ...
• Issuance; Authentication - Mich. Comp. Laws Section 440.5104
  A letter of credit, confirmation, advice, transfer, amendment, or cancellation may be issued in any form that is a record and is authenticated by ...
• Consideration - Mich. Comp. Laws Section 440.5105
  Consideration is not required to issue, amend, transfer, or cancel a letter of credit, advice, or confirmation. History: 1962, Act 174, Eff. Jan. 1, ...
• Credit; Issuance; Enforcement; Revocation; Expiration - Mich. Comp. Laws Section 440.5106
  (1) A letter of credit is issued and becomes enforceable according to its terms against the issuer when the issuer sends or otherwise transmits it ...
• Confirmation; Rights And Obligations; Request To Advise; Notice To Transferee Beneficiary - Mich. Comp. Laws Section 440.5107
  (1) A confirmer is directly obligated on a letter of credit and has the rights and obligations of an issuer to the extent of its ...
• Honoring Or Dishonoring Presentation - Mich. Comp. Laws Section 440.5108
  (1) Except as otherwise provided in section 5109, an issuer shall honor a presentation that, as determined by the standard practice referred to in subsection ...
• Forged Or Fraudulent Document; Injunction; Findings Of Court - Mich. Comp. Laws Section 440.5109
  (1) If a presentation is made that appears on its face strictly to comply with the terms and conditions of the letter of credit, but ...
• Warranties On Presentment Or Transfer - Mich. Comp. Laws Section 440.5110
  (1) If presentation is honored, the beneficiary warrants: (a) To the issuer, any other person to whom presentation is made, and the applicant that there ...
• Wrongful Dishonor, Repudiation, Or Breach; Rights Of Claimant Or Applicant; Liability Of Issuer, Nominated Person, Or Adviser; Attorney Fees; Liquidated Damages - Mich. Comp. Laws Section 440.5111
  (1) If an issuer wrongfully dishonors or repudiates its obligation to pay money under a letter of credit before presentation, the beneficiary, successor, or nominated ...
• Right To Draw Or Demand Performance Under Letter Of Credit; Transfer - Mich. Comp. Laws Section 440.5112
  (1) Except as otherwise provided in section 5113, unless a letter of credit provides that it is transferable, the right of a beneficiary to draw ...
• Rights Of Successor Beneficiary - Mich. Comp. Laws Section 440.5113
  (1) A successor of a beneficiary may consent to amendments, sign and present documents, and receive payment or other items of value in the name ...
• Proceeds Of Letter Of Credit - Mich. Comp. Laws Section 440.5114
  (1) In this section, "proceeds of a letter of credit" means the cash, check, accepted draft, or other item of value paid or delivered upon ...
• Commencement Of Action - Mich. Comp. Laws Section 440.5115
  An action to enforce a right or obligation arising under this article must be commenced within 1 year after the expiration date of the ...
• Jurisdiction; Forum - Mich. Comp. Laws Section 440.5116
  (1) The liability of an issuer, nominated person, or adviser for action or omission is governed by the law of the jurisdiction chosen by an ...
• Rights Of Subrogation - Mich. Comp. Laws Section 440.5117
  (1) An issuer that honors a beneficiary's presentation is subrogated to the rights of the beneficiary to the same extent as if the issuer were ...
• Document Presented Under Letter Of Credit; Security Interest Of Issuer Or Nominated Person - Mich. Comp. Laws Section 440.5118
  (1) An issuer or nominated person has a security interest in a document presented under a letter of credit to the extent that the issuer ...
• Repealed. 1998, Act 489, Imd. Eff. Jan. 4, 1999 - Mich. Comp. Laws Section 440.6101-440.6111
  Compiler's Notes: Enacting section 2 of Act 489 of 1998 provides:"Enacting section 2. Rights and obligations that arose under article 6 before article 6 ...
• Uniform Commercial Code--Documents Of Title; Short Title - Mich. Comp. Laws Section 440.7101
  This article shall be known and may be cited as uniform commercial code--documents of title. History: 1962, Act 174, Eff. Jan. 1, 1964 ...
• Uniform Commercial Code; Documents Of Title; Definitions - Mich. Comp. Laws Section 440.7102
  (a) "Bailee" means the person who by a warehouse receipt, bill of lading or other document of title acknowledges possession of goods and contracts to ...
• Article Subject To Governmental Treaty, Statute, Tariff, Classification Or Regulation - Mich. Comp. Laws Section 440.7103
  To the extent that any treaty or statute of the United States, regulatory statute of this state or tariff, classification or regulation filed or ...
• Negotiable And Nonnegotiable Warehouse Receipt, Bill Of Lading Or Other Document Of Title - Mich. Comp. Laws Section 440.7104
  (1) A warehouse receipt, bill of lading or other document of title is negotiable (a) if by its terms the goods are to be delivered ...
• Warehouse Receipts And Bills Of Lading; Construction Against Negative Implication - Mich. Comp. Laws Section 440.7105
  The omission from either part 2 or part 3 of this article of a provision corresponding to a provision made in the other part ...
• Warehouse Receipts; Issuance; Storage Under Government Bond - Mich. Comp. Laws Section 440.7201
  (1) A warehouse receipt may be issued by any warehouseman. (2) Where goods including distilled spirits and agricultural commodities are stored under a statute requiring ...
• Terms Of Receipt; Essential, Optional, Contrary; Form - Mich. Comp. Laws Section 440.7202
  (1) A warehouse receipt need not be in any particular form. (2) Unless a warehouse receipt embodies within its written or printed terms each of ...
• Liability For Nonreceipt Or Misdescription. - Mich. Comp. Laws Section 440.7203
  A party to or purchaser for value in good faith of a document of title other than a bill of lading relying in either ...
• Duty Of Care; Contractual Limitation Of Warehouseman's Liability - Mich. Comp. Laws Section 440.7204
  (1) A warehouseman is liable for damages for loss of or injury to the goods caused by his failure to exercise such care in regard ...
• Fungible Goods; Buyer's Title. - Mich. Comp. Laws Section 440.7205
  A buyer in the ordinary course of business of fungible goods sold and delivered by a warehouseman who is also in the business of ...
• Termination Of Storage At Warehouseman's Option; Removal Or Sale - Mich. Comp. Laws Section 440.7206
  (1) A warehouseman may on notifying the person on whose account the goods are held and any other person known to claim an interest in ...
• Separation Of Goods; Commingling Of Fungible Goods; Overissued Receipts - Mich. Comp. Laws Section 440.7207
  (1) Unless the warehouse receipt otherwise provides, a warehouseman must keep separate the goods covered by each receipt so as to permit at all times ...
• Alteration Of Warehouse Receipts. - Mich. Comp. Laws Section 440.7208
  Where a blank in a negotiable warehouse receipt has been filled in without authority, a purchaser for value and without notice of the want ...
• Lien Of Warehouseman; Security Interest; Loss Of Lien - Mich. Comp. Laws Section 440.7209
  (1) A warehouseman has a lien against the bailor on the goods covered by a warehouse receipt or on the proceeds thereof in his possession ...
• Lien Of Warehouseman; Enforcement Procedure, Liability For Noncompliance - Mich. Comp. Laws Section 440.7210
  (1) Except as provided in subsection (2), a warehouseman's lien may be enforced by public or private sale of the goods in bloc or in ...
• Negotiable Bill Of Lading; Issuer's Liability For Misdating, Nonreceipt, Or Misdescription; Goods Loaded By Common Carrier Issuer; Bulk Freight; Statement Of Shipper's Weight, Load, And Count; Guarantee; Liability - Mich. Comp. Laws Section 440.7301
  (1) A consignee of a non-negotiable bill who has given value in good faith or a holder to whom a negotiable bill has been duly ...
• Through Bills Of Lading And Similar Documents; Variance As To Overseas Undertaking; Obligations Of Persons Other Than Issuer; Obligations Of Persons To Issuer - Mich. Comp. Laws Section 440.7302
  (1) The issuer of a through bill of lading or other document embodying an undertaking to be performed in part by persons acting as its ...
• Diversion; Reconsignment; Change Of Instructions - Mich. Comp. Laws Section 440.7303
  (1) Unless the bill of lading otherwise provides, the carrier may deliver the goods to a person or destination other than that stated in the ...
• Bills Of Lading In A Set - Mich. Comp. Laws Section 440.7304
  (1) Except where customary in overseas transportation, a bill of lading must not be issued in a set of parts. The issuer is liable for ...
• Destination And Substitute Bills. - Mich. Comp. Laws Section 440.7305
  (1) Instead of issuing a bill of lading to the consignor at the place of shipment a carrier may at the request of the consignor ...
• Altered Bills Of Lading - Mich. Comp. Laws Section 440.7306
  An unauthorized alteration or filling in of a blank in a bill of lading leaves the bill enforceable according to its original tenor. History: ...
• Lien Of Carrier - Mich. Comp. Laws Section 440.7307
  (1) A carrier has a lien on the goods covered by a bill of lading for charges subsequent to the date of its receipt of ...
• Lien Of Carrier; Enforcement, Procedure; Liability For Noncompliance - Mich. Comp. Laws Section 440.7308
  (1) A carrier's lien may be enforced by public or private sale of the goods, in bloc or in parcels, at any time or place ...
• Carrier's Duty Of Care; Contractual Provisions As To Liability - Mich. Comp. Laws Section 440.7309
  (1) A carrier who issues a bill of lading whether negotiable or non-negotiable must exercise the degree of care in relation to the goods which ...
• Irregularities In Issue Of Document Of Title Or Conduct Of Issuer - Mich. Comp. Laws Section 440.7401
  The obligations imposed by this article on an issuer apply to a document of title regardless of the fact that (a) the document may ...
• Duplicate Document Of Title; Overissue. - Mich. Comp. Laws Section 440.7402
  Neither a duplicate nor any other document of title purporting to cover goods already represented by an outstanding document of the same issuer confers ...
• Delivery; Exceptions; Satisfaction Of Bailee's Lien; Cancellation Or Notation Of Partial Delivery; "Person Entitled Under The Document" Defined - Mich. Comp. Laws Section 440.7403
  (1) The bailee must deliver the goods to a person entitled under the document who complies with subsections (2) and (3), unless and to the ...
• Bailee's Delivery In Good Faith Pursuant To Document Of Title - Mich. Comp. Laws Section 440.7404
  A bailee who in good faith including observance of reasonable commercial standards has received goods and delivered or otherwise disposed of them according to ...
• Negotiation; Indorsement; Delivery; Transfer; Notice Of Arrival - Mich. Comp. Laws Section 440.7501
  (1) A negotiable document of title running to the order of a named person is negotiated by his indorsement and delivery. After his indorsement in ...
• Negotiation; Rights Acquired. - Mich. Comp. Laws Section 440.7502
  (1) Subject to the following section and to the provisions of section 7205 on fungible goods, a holder to whom a negotiable document of title ...
• Documents Of Title To Goods; Defeat In Certain Cases - Mich. Comp. Laws Section 440.7503
  (1) A document of title confers no right in goods against a person who before issuance of the document had a legal interest or a ...
• Documents Of Title; Transfer By Delivery In Absence Of Due Negotiation; Effect; Defeat Of Transfer Rights; Diversion Or Change Of Shipping Instructions; Stoppage Of Delivery - Mich. Comp. Laws Section 440.7504
  (1) A transferee of a document, whether negotiable or non-negotiable, to whom the document has been delivered but not duly negotiated, acquires the title and ...
• Documents Of Title; Liability Of Indorser - Mich. Comp. Laws Section 440.7505
  The indorsement of a document of title issued by a bailee does not make the indorser liable for any default by the bailee or ...
• Documents Of Title; Delivery Without Indorsement; Right To Compel Indorsement - Mich. Comp. Laws Section 440.7506
  The transferee of a negotiable document of title has a specifically enforceable right to have his transferor supply any necessary indorsement but the transfer ...
• Documents Of Title; Warranties On Negotiation Or Transfer For Value - Mich. Comp. Laws Section 440.7507
  Where a person negotiates or transfers a document of title for value otherwise than as a mere intermediary under the next following section, then ...
• Documents Of Title; Warranties Of Collecting Bank - Mich. Comp. Laws Section 440.7508
  A collecting bank or other intermediary known to be entrusted with documents on behalf of another or with collection of a draft or other ...
• Documents Of Title; Adequacy As Contract For Sale Or Conditions Of A Credit, Applicable Law - Mich. Comp. Laws Section 440.7509
  The question whether a document is adequate to fulfill the obligations of a contract for sale or the conditions of a credit is governed ...
• Lost, Stolen Or Destroyed Documents Of Title; Delivery Of Goods, Indemnity - Mich. Comp. Laws Section 440.7601
  (1) If a document has been lost, stolen or destroyed, a court may order delivery of the goods or issuance of a substitute document and ...
• Judicial Process; Surrender Of Document Of Title; Innocent Purchaser For Value - Mich. Comp. Laws Section 440.7602
  Except where the document was originally issued upon delivery of the goods by a person who had no power to dispose of them, no ...
• Conflicting Claims; Interpleader. - Mich. Comp. Laws Section 440.7603
  If more than one person claims title or possession of the goods, the bailee is excused from delivery until he has had a reasonable ...
• Uniform Commercial Code--Investment Securities; Cited As - Mich. Comp. Laws Section 440.8101
  This article may be cited as uniform commercial code--investment securities. History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1998, Act 278, Imd. ...
• Definitions - Mich. Comp. Laws Section 440.8102
  (a) "Adverse claim" means a claim that a claimant has a property interest in a financial asset and that it is a violation of the ...
• Share Or Equity Interest As Security; "Investment Company Security" Defined; Interest In Partnership Or Limited Liability Company As Security Or Financial Asset; Writing; Option Or Similar Obligation Issued By Clearing Corporation As Financial Asset; Commodity Contract - Mich. Comp. Laws Section 440.8103
  (1) A share or similar equity interest issued by a corporation, business trust, joint stock company, or similar entity is a security. (2) An investment ...
• Security Or Interest In Security; Financial Asset; Security Entitlement; Acquisition; Placing Security Or Financial Asset In Possession Of Another Person - Mich. Comp. Laws Section 440.8104
  (1) A person acquires a security or an interest in a security under this article in either of the following situations: (a) The person is ...
• Notice Of Adverse Claim - Mich. Comp. Laws Section 440.8105
  (1) A person has notice of an adverse claim if 1 or more of the following apply: (a) The person knows of the adverse claim. ...
• Certificated Security In Bearer Form; Certificated Security In Registered Form; Uncertificated Security; Security Entitlement; Control; Agreement By Issuer Or Securities Intermediary - Mich. Comp. Laws Section 440.8106
  (1) A purchaser has "control" of a certificated security in bearer form if the certificated security is delivered to the purchaser. (2) A purchaser has ...
• "Appropriate Person" Defined; Effectiveness Of Indorsement, Instruction, Or Entitlement Order - Mich. Comp. Laws Section 440.8107
  (1) "Appropriate person" means 1 or more of the following: (a) With respect to an indorsement, the person specified by a security certificate or by ...
• Warranty To Purchaser - Mich. Comp. Laws Section 440.8108
  (1) A person who transfers a certificated security to a purchaser for value warrants to the purchaser, and an indorser, if the transfer is by ...
• Warranty To Securities Intermediary - Mich. Comp. Laws Section 440.8109
  (1) A person who originates an entitlement order to a securities intermediary warrants to the securities intermediary both of the following: (a) The entitlement order ...
• Jurisdiction - Mich. Comp. Laws Section 440.8110
  (1) The law of the issuer's jurisdiction, as specified in subsection (4), governs all of the following: (a) The validity of a security. (b) The ...
• Rule Adopted By Clearing Corporation; Effect. - Mich. Comp. Laws Section 440.8111
  A rule adopted by a clearing corporation governing rights and obligations among the clearing corporation and its participants in the clearing corporation is effective ...
• Reaching Interest Of Debtor - Mich. Comp. Laws Section 440.8112
  (1) The interest of a debtor in a certificated security may be reached by a creditor only by actual seizure of the security certificate by ...
• Sale Or Purchase Of Security; Enforcement Of Contract Or Contract Modification - Mich. Comp. Laws Section 440.8113
  A contract or modification of a contract for the sale or purchase of a security is enforceable whether or not there is a writing ...
• Action On Certificated Security Against Issuer; Rules - Mich. Comp. Laws Section 440.8114
  The following rules apply in an action on a certificated security against the issuer: (a) Unless specifically denied in the pleadings, each signature on ...
• Transferring Or Dealing With Financial Asset; Liability Of Securities Intermediary, Broker, Or Agent - Mich. Comp. Laws Section 440.8115
  A securities intermediary that has transferred a financial asset pursuant to an effective entitlement order, or a broker or other agent or bailee that ...
• Securities Intermediary As Purchaser For Value Of Financial Asset; Acquisition Of Security Entitlement For Value - Mich. Comp. Laws Section 440.8116
  A securities intermediary that receives a financial asset and establishes a security entitlement to the financial asset in favor of an entitlement holder is ...
• "Issuer" Defined - Mich. Comp. Laws Section 440.8201
  (1) With respect to an obligation on or a defense to a security, an "issuer" includes a person that does 1 or more of the ...
• Terms Of Security; Effect Of Defect Going To Validity Of Security; Rules; Defenses; Right Of Party To Cancel Contract. - Mich. Comp. Laws Section 440.8202
  (1) Even against a purchaser for value and without notice, the terms of a certified security include terms stated on the certificate and terms made ...
• Conditions To Charging Purchaser With Notice Of Defect - Mich. Comp. Laws Section 440.8203
  After an act or event, other than a call that has been revoked, creating a right to immediate performance of the principal obligation represented ...
• Restriction On Transfer Of Security - Mich. Comp. Laws Section 440.8204
  A restriction on transfer of a security imposed by the issuer, even though otherwise lawful, is ineffective against a person without knowledge of the ...
• Unauthorized Signature - Mich. Comp. Laws Section 440.8205
  An unauthorized signature placed on a security certificate before or in the course of issue is ineffective, but the signature is effective in favor ...
• Completion Or Alteration Of Security Certificate. - Mich. Comp. Laws Section 440.8206
  (1) If a security certificate contains the signatures necessary to its issue or transfer but is incomplete in any other respect, it may be completed ...
• Rights Of Issuer Or Indenture Trustee With Respect To Registered Owner - Mich. Comp. Laws Section 440.8207
  (1) Before due presentment for registration of transfer of a certificated security in registered form, or of an instruction requesting registration of transfer of an ...
• Warranty Of Person Signing Security Certificate. - Mich. Comp. Laws Section 440.8208
  (1) A person signing a security certificate as authenticating trustee, registrar, transfer agent, or the like, warrants to a purchaser for value of the certificated ...
• Overissue - Mich. Comp. Laws Section 440.8210
  (1) In this section, "overissue" means the issue of securities in excess of the amount the issuer has corporate power to issue, but an overissue ...
• Delivery Of Certificated Or Uncertificated Security To Purchaser - Mich. Comp. Laws Section 440.8301
  (1) Delivery of a certificated security to a purchaser occurs when 1 of the following occurs: (a) The purchaser acquires possession of the security certificate. ...
• Purchaser Of Security; Rights Acquired - Mich. Comp. Laws Section 440.8302
  (1) Except as otherwise provided in subsections (2) and (3), a purchaser of a certificated or uncertificated security acquires all rights in the security that ...
• "Protected Purchaser" Defined - Mich. Comp. Laws Section 440.8303
  (1) "Protected purchaser" means a purchaser of a certificated or uncertificated security, or of an interest in a certificated or uncertificated security and meets all ...
• Indorsement - Mich. Comp. Laws Section 440.8304
  (1) An indorsement may be in blank or special. An indorsement in blank includes an indorsement to bearer. A special indorsement specifies to whom a ...
• Initiation Or Origination Of Instruction; Completion; Reliance; Assumption Of Obligations - Mich. Comp. Laws Section 440.8305
  (1) If an instruction has been originated by an appropriate person but is incomplete in any other respect, any person may complete it as authorized ...
• Warranties Generally - Mich. Comp. Laws Section 440.8306
  (1) A person who guarantees a signature of an indorser of a security certificate warrants that at the time of signing all of the following ...
• Transfer Of Security On Due Demand; Supplying Requisite Necessary To Obtain Registration; Effect Of Noncompliance - Mich. Comp. Laws Section 440.8307
  Unless otherwise agreed, the transferor of a security on due demand shall supply the purchaser with proof of authority to transfer or with any ...
• Repealed. 1998, Act 278, Imd. Eff. July 27, 1998 - Mich. Comp. Laws Section 440.8308-440.8321
  Compiler's Notes: The repealed sections pertained to indorsement, transfer, sale, and delivery of securities. ...
• Registration Of Transfer; Duty And Liability Of Issuer - Mich. Comp. Laws Section 440.8401
  (1) If a certificated security in registered form is presented to an issuer with a request to register transfer or an instruction is presented to ...
• Indorsement As Genuine And Authorized; Assurance; Definitions - Mich. Comp. Laws Section 440.8402
  (1) The issuer may require the following assurance that each necessary indorsement or each instruction is genuine and authorized: (a) In all cases, a guarantee ...
• Demand; Effect; Notification; Period Of Time; Liability Of Issuer - Mich. Comp. Laws Section 440.8403
  (1) A person who is an appropriate person to make an indorsement or originate an instruction may demand that the issuer not register transfer of ...
• Liability Of Issuer For Wrongful Registration Or Transfer - Mich. Comp. Laws Section 440.8404
  (1) Except as otherwise provided in section 8406, an issuer is liable for wrongful registration of transfer if the issuer has registered a transfer of ...
• Lost, Destroyed, Or Wrongfully Taken Securities. - Mich. Comp. Laws Section 440.8405
  (1) If an owner of a certificated security, whether in registered or bearer form, claims that the certificate has been lost, destroyed, or wrongfully taken, ...
• Lost, Destroyed, Or Wrongfully Taken Security Certificate; Failure To Notify Issuer - Mich. Comp. Laws Section 440.8406
  If a security certificate has been lost, apparently destroyed, or wrongfully taken, and the owner fails to notify the issuer of that fact within ...
• Authenticating Trustee, Transfer Agent, Registrar, Or Other Agent; Obligation To Holder Or Owner Of Certificate - Mich. Comp. Laws Section 440.8407
  A person acting as authenticating trustee, transfer agent, registrar, or other agent for an issuer in the registration of a transfer of its securities, ...
• Repealed. 1998, Act 278, Imd. Eff. July 27, 1998 - Mich. Comp. Laws Section 440.8408
  Compiler's Notes: The repealed section pertained to written statements sent by issuer to new registered owner. ...
• "Securities Account" Defined; Acquisition Of Security Entitlement; Conditions; Directly Held Financial Asset; Issuance Not As Security Entitlement - Mich. Comp. Laws Section 440.8501
  (1) "Securities account" means an account to which a financial asset is or may be credited in accordance with an agreement under which the person ...
• Action Based On Adverse Claim - Mich. Comp. Laws Section 440.8502
  An action based on an adverse claim to a financial asset, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may ...
• Entitlement Holder Property Interest - Mich. Comp. Laws Section 440.8503
  (1) To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that ...
• Maintenance Of Financial Asset By Securities Intermediary; Quantity; Manner; Limitation; Duties; Applicability To Clearing Corporation - Mich. Comp. Laws Section 440.8504
  (1) A securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements it ...
• Obtaining Payment Or Distribution Made By Issuer Of Financial Asset; Duties And Obligations Of Securities Intermediary - Mich. Comp. Laws Section 440.8505
  (1) A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset. This duty is satisfied ...
• Duty Of Securities Intermediary To Exercise Rights With Respect To Financial Asset; Conditions - Mich. Comp. Laws Section 440.8506
  A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. The duty is ...
• Compliance With Entitlement Order By Securities Intermediary; Conditions; Wrongful Transfer Of Financial Asset Pursuant To Ineffective Entitlement Order; Liability - Mich. Comp. Laws Section 440.8507
  (1) A securities intermediary shall comply with an entitlement order if the entitlement order is originated by the appropriate person, the securities intermediary has had ...
• Changing Security Entitlement Into Another Form Of Holding; Transferring Financial Asset To Securities Account Of Entitlement Holder; Duties Of Securities Intermediary; Conditions - Mich. Comp. Laws Section 440.8508
  A securities intermediary shall act at the direction of an entitlement holder to change a security entitlement into another available form of holding for ...
• Performance Of Duties By Securities Intermediary. - Mich. Comp. Laws Section 440.8509
  (1) If the substance of a duty imposed upon a securities intermediary by sections 8504 through 8508 is the subject of other statute, regulation, or ...
• Assertion Of Action Based On Adverse Claim; Prohibition; Conditions; Priority - Mich. Comp. Laws Section 440.8510
  (1) In a case not covered by the priority rules in article 9 or the rules stated in subsection (3), an action based on an ...
• Priority Of Claims - Mich. Comp. Laws Section 440.8511
  (1) Except as otherwise provided in subsections (2) and (3), if a securities intermediary does not have sufficient interest in a particular financial asset to ...
• Action Or Proceeding Commenced Before Act Takes Effect; Security Interest Perfected At Date Act Takes Effect - Mich. Comp. Laws Section 440.8601
  (1) This amendatory act does not affect an action or proceeding commenced before this amendatory act that added this section takes effect. (2) If a ...
• Uniform Commercial Code--Secured Transactions; Short Title - Mich. Comp. Laws Section 440.9101
  This article shall be known and may be cited as "uniform commercial code--secured transactions". History: 1962, Act 174, Eff. Jan. 1, 1964 ...
• Definitions And Index Of Definitions - Mich. Comp. Laws Section 440.9102
  (a) "Accession" means goods that are physically united with other goods in such a manner that the identity of the original goods is not lost. ...
• Purchase-Money Security Interest; Application Of Payments; Burden Of Establishing - Mich. Comp. Laws Section 440.9103
  (1) As used in this section: (a) "Purchase-money collateral" means goods or software that secures a purchase-money obligation incurred with respect to that collateral. (b) ...
• Control Of Deposit Account - Mich. Comp. Laws Section 440.9104
  (1) A secured party has control of a deposit account if 1 or more of the following apply: (a) The secured party is the bank ...
• Control Of Electronic Chattel Paper - Mich. Comp. Laws Section 440.9105
  A secured party has control of electronic chattel paper if the record or records comprising the chattel paper are created, stored, and assigned in ...
• Control Of Investment Property - Mich. Comp. Laws Section 440.9106
  (1) A person has control of a certificated security, uncertificated security, or security entitlement as provided in section 8106. (2) A secured party has control ...
• Control Of Letter-Of-Credit Right - Mich. Comp. Laws Section 440.9107
  A secured party has control of a letter-of-credit right to the extent of any right to payment or performance by the issuer or any ...
• Sufficiency Of Description - Mich. Comp. Laws Section 440.9108
  (1) Except as otherwise provided in subsections (3), (4), and (5), a description of personal or real property is sufficient, whether or not it is ...
• Scope - Mich. Comp. Laws Section 440.9109
  (1) Except as otherwise provided in subsections (3) and (4), this article applies to all of the following: (a) A transaction, regardless of its form, ...
• Security Interests Arising Under Article 2 Or 2a - Mich. Comp. Laws Section 440.9110
  A security interest arising under section 2401, 2505, 2711(3), or 2A508(5) is subject to this article. However, until the debtor obtains possession of the ...
• Repealed. 1998, Act 489, Imd. Eff. Jan. 4, 1999 - Mich. Comp. Laws Section 440.9111
  Compiler's Notes: The repealed section pertained to creation of security interest as bulk transfer. ...
• Repealed. 2000, Act 348, Eff. July 1, 2001 - Mich. Comp. Laws Section 440.9112-440.9116
  Compiler's Notes: The repealed sections pertained to collateral not owned by debtor, security interests arising under article on sales, consignment, attachment or perfection, and ...
• General Effectiveness Of Security Agreement - Mich. Comp. Laws Section 440.9201
  (1) Except as otherwise provided in this act, a security agreement is effective according to its terms between the parties, against purchasers of the collateral, ...
• Title To Collateral Immaterial - Mich. Comp. Laws Section 440.9202
  Except as otherwise provided with respect to consignments or sales of accounts, chattel paper, payment intangibles, or promissory notes, the provisions of this article ...
• Attachment And Enforceability Of Security Interest; Proceeds; Supporting Obligations; Formal Requisites - Mich. Comp. Laws Section 440.9203
  (1) A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postpones the ...
• After-Acquired Property; Future Advances - Mich. Comp. Laws Section 440.9204
  (1) Except as otherwise provided in subsection (2), a security agreement may create or provide for a security interest in after-acquired collateral. (2) A security ...
• Use Or Disposition Of Collateral Permissible - Mich. Comp. Laws Section 440.9205
  (1) A security interest is not invalid or fraudulent against creditors solely because of either of the following: (a) The debtor has the right or ...
• Security Interest Arising In Purchase Or Delivery Of Financial Asset - Mich. Comp. Laws Section 440.9206
  (1) A security interest in favor of a securities intermediary attaches to a person's security entitlement if the person buys a financial asset through the ...
• Rights And Duties Of Secured Party Having Possession Or Control Of Collateral - Mich. Comp. Laws Section 440.9207
  (1) Except as otherwise provided in subsection (4), a secured party shall use reasonable care in the custody and preservation of collateral in the secured ...
• Additional Duties Of Secured Party Having Control Of Collateral - Mich. Comp. Laws Section 440.9208
  (1) This section applies to cases in which there is no outstanding secured obligation and the secured party is not committed to make advances, incur ...
• Duties Of Secured Party If Account Debtor Has Been Notified Of Assignment - Mich. Comp. Laws Section 440.9209
  (1) Except as otherwise provided in subsection (3), this section applies if there is no outstanding secured obligation and the secured party is not committed ...
• Request For Accounting; Request Regarding List Of Collateral Or Statement Of Account - Mich. Comp. Laws Section 440.9210
  (1) As used in this section: (a) "Request" means a record of a type described in subdivision (b), (c), or (d). (b) "Request for an ...
• Law Governing Perfection And Priority Of Security Interests - Mich. Comp. Laws Section 440.9301
  Except as otherwise provided in sections 9303 through 9306, the following rules determine the law governing perfection, the effect of perfection or nonperfection, and ...
• Law Governing Perfection And Priority Of Agricultural Liens - Mich. Comp. Laws Section 440.9302
  While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the ...
• Law Governing Perfection And Priority Of Security Interests In Goods Covered By Certificate Of Title - Mich. Comp. Laws Section 440.9303
  (1) This section applies to goods covered by a certificate of title, even if there is no other relationship between the jurisdiction under whose certificate ...
• Law Governing Perfection And Priority Of Security Interests In Deposit Accounts - Mich. Comp. Laws Section 440.9304
  (1) The local law of a bank's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a ...
• Law Governing Perfection And Priority Of Security Interests In Investment Property - Mich. Comp. Laws Section 440.9305
  (1) Except as otherwise provided in subsection (3), the following rules apply: (a) While a security certificate is located in a jurisdiction, the local law ...
• Law Governing Perfection And Priority Of Security Interests In Letter-Of-Credit Rights - Mich. Comp. Laws Section 440.9306
  (1) Subject to subsection (3), the local law of the issuer's jurisdiction or a nominated person's jurisdiction governs perfection, the effect of perfection or nonperfection, ...
• Location Of Debtor - Mich. Comp. Laws Section 440.9307
  (1) As used in this section, "place of business" means a place where a debtor conducts its affairs. (2) Except as otherwise provided in this ...
• When Security Interest Or Agricultural Lien Is Perfected; Continuity Of Perfection - Mich. Comp. Laws Section 440.9308
  (1) Except as otherwise provided in this section and section 9309, a security interest is perfected if it has attached and all of the applicable ...
• Security Interest Perfected Upon Attachment - Mich. Comp. Laws Section 440.9309
  Each of the following security interests is perfected when it attaches: (a) A purchase-money security interest in consumer goods, except as otherwise provided in ...
• When Filing Required To Perfect Security Interest Or Agricultural Lien; Security Interests And Agricultural Liens To Which Filing Provisions Do Not Apply - Mich. Comp. Laws Section 440.9310
  (1) Except as otherwise provided in subsection (2) and section 9312(2), a financing statement must be filed to perfect all security interests and agricultural liens. ...
• Perfection Of Security Interests In Property Subject To Certain Statutes, Regulations, And Treaties - Mich. Comp. Laws Section 440.9311
  (a) A statute, regulation, or treaty of the United States whose requirements for a security interest's obtaining priority over the rights of a lien creditor ...
• Perfection Of Security Interests In Chattel Paper, Deposit Accounts, Documents, Goods Covered By Documents, Instruments, Investment Property, Letter-Of-Credit Rights, And Money; Perfection By Permissive Filing; Temporary Perfection Without Filing Or Transfer Of Possession - Mich. Comp. Laws Section 440.9312
  (1) A security interest in chattel paper, negotiable documents, instruments, or investment property may be perfected by filing. (2) Except as otherwise provided in section ...
• When Possession By Or Delivery To Secured Party Perfects Security Interest Without Filing - Mich. Comp. Laws Section 440.9313
  (1) Except as otherwise provided in subsection (2), a secured party may perfect a security interest in negotiable documents, goods, instruments, money, or tangible chattel ...
• Perfection By Control - Mich. Comp. Laws Section 440.9314
  (1) A security interest in investment property, deposit accounts, letter-of-credit rights, or electronic chattel paper may be perfected by control of the collateral under section ...
• Secured Party's Rights On Disposition Of Collateral And In Proceeds - Mich. Comp. Laws Section 440.9315
  (1) Except as otherwise provided in this article and in section 2403(2), both of the following apply: (a) A security interest or agricultural lien continues ...
• Continued Perfection Of Security Interest Following Change In Governing Law - Mich. Comp. Laws Section 440.9316
  (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 ...
• Interests That Take Priority Over Or Take Free Of Unperfected Security Interest Or Agricultural Lien - Mich. Comp. Laws Section 440.9317
  (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 ...
• 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 - Mich. Comp. Laws Section 440.9318
  (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 ...
• Rights And Title Of Consignee With Respect To Creditors And Purchasers - Mich. Comp. Laws Section 440.9319
  (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 ...
• Buyer Of Goods - Mich. Comp. Laws Section 440.9320
  (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 ...
• Licensee Of General Intangible And Lessee Of Goods In Ordinary Course Of Business - Mich. Comp. Laws Section 440.9321
  (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 ...
• Priorities Among Conflicting Security Interests In And Agricultural Liens On Same Collateral - Mich. Comp. Laws Section 440.9322
  (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 ...
• Future Advances - Mich. Comp. Laws Section 440.9323
  (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 ...
• Priority Of Purchase-Money Security Interests - Mich. Comp. Laws Section 440.9324
  (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 ...
• Priority Of Security Interests In Transferred Collateral - Mich. Comp. Laws Section 440.9325
  (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 ...
• Priority Of Security Interests Created By New Debtor - Mich. Comp. Laws Section 440.9326
  (1) Subject to subsection (2), a security interest created by a new debtor that is perfected by a filed financing statement that is effective solely ...
• Priority Of Security Interests In Deposit Account - Mich. Comp. Laws Section 440.9327
  The following rules govern priority among conflicting security interests in the same deposit account: (a) A security interest held by a secured party having ...
• Priority Of Security Interests In Investment Property - Mich. Comp. Laws Section 440.9328
  The following rules govern priority among conflicting security interests in the same investment property: (a) A security interest held by a secured party having ...
• Priority Of Security Interests In Letter-Of-Credit Right - Mich. Comp. Laws Section 440.9329
  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 ...
• Priority Of Purchaser Of Chattel Paper Or Instrument - Mich. Comp. Laws Section 440.9330
  (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 ...
• 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 - Mich. Comp. Laws Section 440.9331
  (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 ...
• Transfer Of Money; Transfer Of Funds From Deposit Account - Mich. Comp. Laws Section 440.9332
  (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 ...
• Priority Of Certain Liens Arising By Operation Of Law - Mich. Comp. Laws Section 440.9333
  (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 ...
• Priority Of Security Interests In Fixtures And Crops - Mich. Comp. Laws Section 440.9334
  (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 ...
• Accessions - Mich. Comp. Laws Section 440.9335
  (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 ...
• Commingled Goods - Mich. Comp. Laws Section 440.9336
  (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 ...
• Priority Of Security Interests In Goods Covered By Certificate Of Title - Mich. Comp. Laws Section 440.9337
  If, while a security interest in goods is perfected by any method under the law of another jurisdiction, this state issues a certificate of ...
• Priority Of Security Interests Or Agricultural Lien Perfected By Filed Financing Statement Providing Certain Incorrect Information - Mich. Comp. Laws Section 440.9338
  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 ...
• Priority Subject To Subordination - Mich. Comp. Laws Section 440.9339
  This article does not preclude subordination by agreement by a person entitled to priority. History: Add. 2000, Act 348, Eff. July 1, 2001 ...
• Effectiveness Of Right Of Recoupment Or Setoff Against Deposit Account - Mich. Comp. Laws Section 440.9340
  (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 ...
• Bank's Rights And Duties With Respect To Deposit Account - Mich. Comp. Laws Section 440.9341
  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 ...
• Bank's Right To Refuse To Enter Into Or Disclose Existence Of Control Agreement - Mich. Comp. Laws Section 440.9342
  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 ...
• Alienability Of Debtor's Rights - Mich. Comp. Laws Section 440.9401
  (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 ...
• Secured Party Not Obligated On Contract Of Debtor Or In Tort - Mich. Comp. Laws Section 440.9402
  The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not ...
• Agreement Not To Assert Defenses Against Assignee - Mich. Comp. Laws Section 440.9403
  (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 ...
• Rights Acquired By Assignee; Claims And Defenses Against Assignee - Mich. Comp. Laws Section 440.9404
  (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 ...
• Modification Of Assigned Contract - Mich. Comp. Laws Section 440.9405
  (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 ...
• 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 - Mich. Comp. Laws Section 440.9406
  (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 ...
• Restrictions On Creation Or Enforcement Of Security Interest In Leasehold Interest Or In Lessor's Residual Interest - Mich. Comp. Laws Section 440.9407
  (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 ...
• Restrictions On Assignment Of Promissory Notes, Health-Care-Insurance Receivables, And Certain General Intangibles Ineffective - Mich. Comp. Laws Section 440.9408
  (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 ...
• Repealed. 2000, Act 348, Eff. July 1, 2001 - Mich. Comp. Laws Section 440.9408a
  Compiler's Notes: The repealed section pertained to financing statement of consignor or lessor of goods. ...
• Restrictions On Assignment Of Letter-Of-Credit Rights Ineffective - Mich. Comp. Laws Section 440.9409
  (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 ...
• Repealed. 2000, Act 348, Eff. July 1, 2001 - Mich. Comp. Laws Section 440.9410
  Compiler's Notes: The repealed section pertained to establishment of subscription service. ...
• Filing Office - Mich. Comp. Laws Section 440.9501
  (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 ...
• Contents Of Financing Statement; Record Of Mortgage As Financing Statement; Time Of Filing Financing Statement - Mich. Comp. Laws Section 440.9502
  (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. ...
• Name Of Debtor And Secured Party - Mich. Comp. Laws Section 440.9503
  (1) A financing statement sufficiently provides the name of the debtor if it meets all of the following that apply to the debtor: (a) If ...
• Indication Of Collateral - Mich. Comp. Laws Section 440.9504
  A financing statement sufficiently indicates the collateral that it covers if the financing statement provides 1 of the following: (a) A description of the ...
• Filing And Compliance With Other Statutes And Treaties For Consignments, Leases, Other Bailments, And Other Transactions - Mich. Comp. Laws Section 440.9505
  (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 ...
• Effect Of Errors Or Omissions - Mich. Comp. Laws Section 440.9506
  (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 ...
• Effect Of Certain Events On Effectiveness Of Financing Statement - Mich. Comp. Laws Section 440.9507
  (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 ...
• Effectiveness Of Financing Statement If New Debtor Becomes Bound By Security Agreement - Mich. Comp. Laws Section 440.9508
  (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 ...
• Persons Entitled To File A Record - Mich. Comp. Laws Section 440.9509
  (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 ...
• Effectiveness Of Filing Record - Mich. Comp. Laws Section 440.9510
  (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) ...
• Secured Party Of Record - Mich. Comp. Laws Section 440.9511
  (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 ...
• Amendment Of Financing Statement - Mich. Comp. Laws Section 440.9512
  (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), ...
• Termination Statement - Mich. Comp. Laws Section 440.9513
  (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 ...
• Assignment Of Powers Of Secured Party Of Record - Mich. Comp. Laws Section 440.9514
  (1) Except as otherwise provided in subsection (3), an initial financing statement may reflect an assignment of all of the secured party's power to authorize ...
• Duration And Effectiveness Of Financing Statement; Effect Of Lapsed Financing Statement - Mich. Comp. Laws Section 440.9515
  (1) Except as otherwise provided in subsections (2), (5), (6), and (7), a filed financing statement is effective for a period of 5 years after ...
• What Constitutes Filing; Effectiveness Of Filing - Mich. Comp. Laws Section 440.9516
  (1) Except as otherwise provided in subsection (2), communication of a record to a filing office and tender of the filing fee or acceptance of ...
• Effect Of Indexing Errors - Mich. Comp. Laws Section 440.9517
  The failure of the filing office to index a record correctly does not affect the effectiveness of the filed record. History: Add. 2000, Act ...
• Claim Concerning Inaccurate Or Wrongfully Filed Record - Mich. Comp. Laws Section 440.9518
  (1) A person may file in the filing office a correction statement with respect to a record indexed there under the person's name if the ...
• Numbering, Maintaining, And Indexing Records; Communicating Information Provided In Records - Mich. Comp. Laws Section 440.9519
  (1) For each record filed in a filing office, the filing office shall do all of the following: (a) Assign a unique number to the ...
• Acceptance And Refusal To Accept Record - Mich. Comp. Laws Section 440.9520
  (1) A filing office shall refuse to accept a record for filing for a reason set forth in section 9516(2) and may refuse to accept ...
• Uniform Form Of Written Financing Statement And Amendment - Mich. Comp. Laws Section 440.9521
  UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (FRONT AND BACK) CAREFULLY A. NAME AND PHONE OF CONTACT AT FILER [optional] ______________________________________________________________ B. SEND ACKNOWLEDGMENT TO: (Name ...
• Maintenance And Destruction Of Records - Mich. Comp. Laws Section 440.9522
  (1) The filing office shall maintain a record of the information provided in a filed financing statement for at least 1 year after the effectiveness ...
• Information From Filing Office; Sale Or License Of Records - Mich. Comp. Laws Section 440.9523
  (1) If a person that files a written record requests an acknowledgment of the filing, the filing office shall send to the person an image ...
• Delay By Filing Office - Mich. Comp. Laws Section 440.9524
  Delay by the filing office beyond a time limit prescribed by this part is excused if both of the following apply: (a) The delay ...
• Fees - Mich. Comp. Laws Section 440.9525
  (1) Except as otherwise provided in subsection (3) or (4), the fee for filing and indexing a record under this part is $15.00. (2) A ...
• Filing-Office Rules - Mich. Comp. Laws Section 440.9526
  (1) The secretary of state shall adopt and publish rules to implement this article. The filing-office rules must be consistent with this article and adopted ...
• Duty To Report - Mich. Comp. Laws Section 440.9527
  The secretary of state shall report annually to the governor and legislature on the operation of the filing office. The report must contain a ...
• Rights After Default; Judicial Enforcement; Consignor Or Buyer Of Accounts, Chattel Paper, Payment Intangibles, Or Promissory Notes - Mich. Comp. Laws Section 440.9601
  (1) After default, a secured party has the rights provided in this part and, except as otherwise provided in section 9602, those provided by agreement ...
• Waiver And Variance Of Rights And Duties - Mich. Comp. Laws Section 440.9602
  Except as otherwise provided in section 9624, to the extent that they give rights to a debtor or obligor and impose duties on a ...
• Agreement On Standards Concerning Rights And Duties - Mich. Comp. Laws Section 440.9603
  (1) The parties may determine by agreement the standards measuring the fulfillment of the rights of a debtor or obligor and the duties of a ...
• Procedure If Security Agreement Covers Real Property Or Fixtures - Mich. Comp. Laws Section 440.9604
  (1) If a security agreement covers both personal and real property, a secured party may do either of the following: (a) Proceed under this part ...
• Unknown Debtor Or Secondary Obligor - Mich. Comp. Laws Section 440.9605
  A secured party does not owe a duty based on its status as secured party to either of the following: (a) To a person ...
• Time Of Default For Agricultural Lien - Mich. Comp. Laws Section 440.9606
  For purposes of this part, a default occurs in connection with an agricultural lien at the time the secured party becomes entitled to enforce ...
• Collection And Enforcement By Secured Party - Mich. Comp. Laws Section 440.9607
  (1) If so agreed, and in any event after default, a secured party may do 1 or more of the following: (a) Notify an account ...
• Application Of Proceeds Of Collection Or Enforcement; Liability For Deficiency And Right To Surplus - Mich. Comp. Laws Section 440.9608
  (1) If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply: (a) A secured party shall apply ...
• Secured Party's Right To Take Possession After Default - Mich. Comp. Laws Section 440.9609
  (1) After default, a secured party may do 1 or more of the following: (a) Take possession of the collateral. (b) Without removal, render equipment ...
• Disposition Of Collateral After Default - Mich. Comp. Laws Section 440.9610
  (1) After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or ...
• Notification Before Disposition Of Collateral - Mich. Comp. Laws Section 440.9611
  (1) As used in this section, "notification date" means the earlier of the date on which 1 of the following occurs: (a) A secured party ...
• Timeliness Of Notification Before Disposition Of Collateral - Mich. Comp. Laws Section 440.9612
  (1) Except as otherwise provided in subsection (2), whether a notification is sent within a reasonable time is a question of fact. (2) In a ...
• Contents And Form Of Notification Before Disposition Of Collateral; Generally - Mich. Comp. Laws Section 440.9613
  (a) The contents of a notification of disposition are sufficient if the notification does all of the following: (i) Describes the debtor and the secured ...
• Contents And Form Of Notification Before Disposition Of Collateral; Consumer-Goods Transaction - Mich. Comp. Laws Section 440.9614
  (a) A notification of disposition must provide all of the following information: (i) The information specified in section 9613(a). (ii) A description of any liability ...
• Application Of Proceeds Of Disposition; Liability For Deficiency And Right To Surplus - Mich. Comp. Laws Section 440.9615
  (1) A secured party shall apply or pay over for application the cash proceeds of disposition under section 9610 in the following order: (a) To ...
• Explanation Of Calculation Of Surplus Or Deficiency - Mich. Comp. Laws Section 440.9616
  (1) As used in this section: (a) "Explanation" means a writing that does all of the following: (i) States the amount of the surplus or ...
• Rights Of Transferee Of Collateral - Mich. Comp. Laws Section 440.9617
  (1) A secured party's disposition of collateral after default does all of the following: (a) Transfers to a transferee for value all of the debtor's ...
• Rights And Duties Of Certain Secondary Obligors - Mich. Comp. Laws Section 440.9618
  (1) A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after all of the following: (a) The ...
• Transfer Of Record Or Legal Title - Mich. Comp. Laws Section 440.9619
  (1) As used in this section, "transfer statement" means a record authenticated by a secured party stating all of the following: (a) That the debtor ...
• Acceptance Of Collateral In Full Or Partial Satisfaction Of Obligation; Compulsory Disposition Of Collateral - Mich. Comp. Laws Section 440.9620
  (1) Except as otherwise provided in subsection (7), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only ...
• Notification Of Proposal To Accept Collateral - Mich. Comp. Laws Section 440.9621
  (1) A secured party that desires to accept collateral in full or partial satisfaction of the obligation it secures shall send its proposal to all ...
• Effect Of Acceptance Of Collateral - Mich. Comp. Laws Section 440.9622
  (1) A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures does all of the following: (a) Discharges the ...
• Right To Redeem Collateral - Mich. Comp. Laws Section 440.9623
  (1) A debtor, any secondary obligor, or any other secured party or lienholder may redeem collateral. (2) To redeem collateral, a person shall tender both ...
• Waiver - Mich. Comp. Laws Section 440.9624
  (1) A debtor or secondary obligor may waive the right to notification of disposition of collateral under section 9611 only by an agreement to that ...
• Remedies For Secured Party's Failure To Comply With Article - Mich. Comp. Laws Section 440.9625
  (1) If it is established that a secured party is not proceeding in accordance with this article, a court may order or restrain collection, enforcement, ...
• Action In Which Deficiency Or Surplus Is In Issue - Mich. Comp. Laws Section 440.9626
  (1) In an action arising from a transaction, other than a consumer transaction, in which the amount of a deficiency or surplus is in issue, ...
• Determination Of Whether Conduct Was Commercially Reasonable - Mich. Comp. Laws Section 440.9627
  (1) The fact that a greater amount could have been obtained by a collection, enforcement, disposition, or acceptance at a different time or in a ...
• Nonliability And Limitation On Liability Of Secured Party; Liability Of Secondary Obligor - Mich. Comp. Laws Section 440.9628
  (1) Unless a secured party knows that a person is a debtor or obligor, knows the identity of the person, and knows how to communicate ...
• "This Amendatory Act" Defined - Mich. Comp. Laws Section 440.9701
  As used in this part, "this amendatory act" means the amendatory act that added this part. History: Add. 2000, Act 348, Eff. July 1, ...
• Savings Clause - Mich. Comp. Laws Section 440.9702
  (1) Except as otherwise provided in this part, this amendatory act applies to a transaction or lien within its scope, even if the transaction or ...
• Security Interest Perfected Before Effective Date - Mich. Comp. Laws Section 440.9703
  (1) A security interest that is enforceable immediately before this amendatory act takes effect and would have priority over the rights of a person that ...
• Security Interest Unperfected Before Effective Date - Mich. Comp. Laws Section 440.9704
  All of the following apply to a security interest that is enforceable immediately before this amendatory act takes effect but which would be subordinate ...
• Effectiveness Of Action Taken Before Effective Date - Mich. Comp. Laws Section 440.9705
  (1) If action, other than the filing of a financing statement, is taken before this amendatory act takes effect and the action would have resulted ...
• When Initial Financing Statement Suffices To Continue Effectiveness Of Financing Statement - Mich. Comp. Laws Section 440.9706
  (1) The filing of an initial financing statement in the office specified in section 9501 continues the effectiveness of a financing statement filed before this ...
• Pre-Effective-Date Financing Statement - Mich. Comp. Laws Section 440.9707
  (1) As used in this section, "pre-effective-date financing statement" means a financing statement filed before this amendatory act takes effect. (2) After this amendatory act ...
• Persons Entitled To File Initial Financing Statement Or Continuation Statement - Mich. Comp. Laws Section 440.9708
  A person may file an initial financing statement or a continuation statement under this part if both of the following apply: (a) The secured ...
• Priority - Mich. Comp. Laws Section 440.9709
  (1) This amendatory act determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before this amendatory ...
• Effective Date Of Act; Application To Future Transactions - Mich. Comp. Laws Section 440.9991
  This act shall become effective on January 1, 1964. It applies to transactions entered into and events occurring after that date. History: 1962, Act ...
• Repeal - Mich. Comp. Laws Section 440.9992
  The following acts and parts of acts, as amended, are hereby repealed: (1) Revised Statutes of 1846. Chapter Section Numbers Compiled Law Sections (1948) ...
• Saving Clause - Mich. Comp. Laws Section 440.9993
  Transactions validly entered into before the effective date specified in section 9991 and the rights, duties and interests flowing from them remain valid thereafter ...
• Effect Of Article 7 - Mich. Comp. Laws Section 440.9994
  The article on documents of title (article 7) does not repeal or modify any laws prescribing the form or contents of documents of title ...
• Effective Date - Mich. Comp. Laws Section 440.11101
  This 1978 amendatory act shall take effect at 12:01 a.m. on January 1, 1979. History: Add. 1978, Act 369, Eff. Jan. 1, 1979 ...
• Continuation Statement; Transactions Governed By Code As Amended; Transactions Entered Into Before Effective Date Of Amendatory Act - Mich. Comp. Laws Section 440.11102
  (1) If a continuation statement signed by the debtor and secured party, and otherwise complying with the formal requirements of section 9403(3) of this ...

Last modified: January 3, 2008