reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-2 - Part 2 Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement (440.9201...440.9210) › 174-1962-9-2-2. - Subpart 2. Rights and Duties (440.9207...440.9210) › Section 440.9207 - Rights and Duties of Secured Party Having Possession or Control of Collateral.

440.9207 Rights and duties of secured party having possession or control of collateral.
Sec. 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 party's possession. In the case of chattel paper or an instrument, reasonable care includes taking necessary steps to preserve rights against prior parties unless otherwise agreed.
(2) Except as otherwise provided in subsection (4), if a secured party has possession of collateral all of the following apply:
(a) Reasonable expenses, including the cost of insurance and payment of taxes or other charges, incurred in the custody, preservation, use, or operation of the collateral are chargeable to the debtor and are secured by the collateral.
(b) The risk of accidental loss or damage is on the debtor to the extent of a deficiency in any effective insurance coverage.
(c) The secured party shall keep the collateral identifiable, but fungible collateral may be commingled.
(d) The secured party may use or operate the collateral for the purpose of preserving the collateral or its value; as permitted by an order of a court having competent jurisdiction; or except in the case of consumer goods, in the manner and to the extent agreed by the debtor.
(3) Except as otherwise provided in subsection (4), a secured party having possession of collateral or control of collateral under section 7106, 9104, 9105, 9106, or 9107 may hold as additional security any proceeds, except money or funds, received from the collateral, shall apply money or funds received from the collateral to reduce the secured obligation unless remitted to the debtor, and may create a security interest in the collateral.
(4) If the secured party is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor, subsections (2) and (3) do not apply, and subsection (1) does not apply unless the secured party is entitled under an agreement to charge back uncollected collateral or otherwise to full or limited recourse against the debtor or a secondary obligor based on the nonpayment or other default of an account debtor or other obligor on the collateral.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 2000, Act 348, Eff. July 1, 2001 ;-- Am. 2012, Act 87, Eff. July 1, 2013
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-2 - Part 2 Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement (440.9201...440.9210) › 174-1962-9-2-2. - Subpart 2. Rights and Duties (440.9207...440.9210) › Section 440.9209 - Duties of Secured Party if Account Debtor Has Been Notified of Assignment.

440.9209 Duties of secured party if account debtor has been notified of assignment.
Sec. 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 to make advances, incur obligations, or otherwise give value.
(2) Within 10 days after receiving an authenticated demand by the debtor, a secured party shall send to an account debtor that has received notification of an assignment to the secured party as assignee under section 9406(1) an authenticated record that releases the account debtor from any further obligation to the secured party.
(3) This section does not apply to an assignment constituting the sale of an account, chattel paper, or payment intangible.
History:
Add. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-1. - Subpart 1. Law Governing Perfection and Priority (440.9301...440.9307) › Section 440.9301 - Law Governing Perfection and Priority of Security Interests.

440.9301 Law governing perfection and priority of security interests.
Sec. 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 the priority of a security interest in collateral:
(a) Except as otherwise provided in this section, while a debtor is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral.
(b) While collateral is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a possessory security interest in that collateral.
(c) Except as otherwise provided in subdivision (d), while tangible negotiable documents, goods, instruments, money, or tangible chattel paper is located in a jurisdiction, the local law of that jurisdiction governs perfection of a security interest in the goods by filing a fixture filing, perfection of a security interest in timber to be cut, and the effect of perfection or nonperfection and the priority of a nonpossessory security interest in the collateral.
(d) The local law of the jurisdiction in which the wellhead or minehead is located governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in as-extracted collateral.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1978, Act 369, Eff. Jan. 1, 1979 ;-- Am. 1984, Act 170, Imd. Eff. June 29, 1984 ;-- Am. 1998, Act 278, Imd. Eff. July 27, 1998 ;-- Am. 2000, Act 348, Eff. July 1, 2001 ;-- Am. 2012, Act 87, Eff. July 1, 2013
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-1. - Subpart 1. Law Governing Perfection and Priority (440.9301...440.9307) › Section 440.9302 - Law Governing Perfection and Priority of Agricultural Liens.

440.9302 Law governing perfection and priority of agricultural liens.
Sec. 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 priority of an agricultural lien on the farm products.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1964, Act 235, Eff. Aug. 28, 1964 ;-- Am. 1976, Act 27, Imd. Eff. Mar. 4, 1976 ;-- Am. 1978, Act 369, Eff. Jan. 1, 1979 ;-- Am. 1978, Act 607, Eff. Jan. 6, 1979 ;-- Am. 1987, Act 16, Imd. Eff. Apr. 24, 1987 ;-- Am. 1996, Act 72, Imd. Eff. Feb. 26, 1996 ;-- Am. 1998, Act 278, Imd. Eff. July 27, 1998 ;-- Am. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-1. - Subpart 1. Law Governing Perfection and Priority (440.9301...440.9307) › Section 440.9303 - Law Governing Perfection and Priority of Security Interests in Goods Covered by Certificate of Title.

440.9303 Law governing perfection and priority of security interests in goods covered by certificate of title.
Sec. 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 of title the goods are covered and the goods or the debtor.
(2) Goods become covered by a certificate of title when a valid application for the certificate of title and the applicable fee are delivered to the appropriate authority. Goods cease to be covered by a certificate of title at the earlier of the time the certificate of title ceases to be effective under the law of the issuing jurisdiction or the time the goods become covered subsequently by a certificate of title issued by another jurisdiction.
(3) The local law of the jurisdiction under whose certificate of title the goods are covered governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in goods covered by a certificate of title from the time the goods become covered by the certificate of title until the goods cease to be covered by the certificate of title.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1998, Act 278, Imd. Eff. July 27, 1998 ;-- Am. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-1. - Subpart 1. Law Governing Perfection and Priority (440.9301...440.9307) › Section 440.9304 - Law Governing Perfection and Priority of Security Interests in Deposit Accounts.

440.9304 Law governing perfection and priority of security interests in deposit accounts.
Sec. 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 deposit account maintained with that bank.
(2) The following rules determine a bank's jurisdiction for purposes of this part:
(a) If an agreement between the bank and the debtor governing the deposit account expressly provides that a particular jurisdiction is the bank's jurisdiction for the purpose of this part, this article, or this act, that jurisdiction is the bank's jurisdiction.
(b) If subdivision (a) does not apply and an agreement between the bank and its customer governing the deposit account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the bank's jurisdiction.
(c) If neither subdivision (a) nor (b) applies and an agreement between the bank and its customer governing the deposit account expressly provides that the deposit account is maintained at an office in a particular jurisdiction, that jurisdiction is the bank's jurisdiction.
(d) If none of the preceding subdivisions apply, the bank's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the customer's account is located.
(e) If none of the preceding subdivisions apply, the bank's jurisdiction is the jurisdiction in which the chief executive office of the bank is located.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1978, Act 369, Eff. Jan. 1, 1979 ;-- Am. 1987, Act 16, Imd. Eff. Apr. 24, 1987 ;-- Am. 1998, Act 278, Imd. Eff. July 27, 1998 ;-- Am. 1998, Act 488, Imd. Eff. Jan. 4, 1999 ;-- Am. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-1. - Subpart 1. Law Governing Perfection and Priority (440.9301...440.9307) › Section 440.9306 - Law Governing Perfection and Priority of Security Interests in Letter-of-Credit Rights.

440.9306 Law governing perfection and priority of security interests in letter-of-credit rights.
Sec. 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, and the priority of a security interest in a letter-of-credit right if the issuer's jurisdiction or nominated person's jurisdiction is a state.
(2) For purposes of this part, an issuer's jurisdiction or nominated person's jurisdiction is the jurisdiction whose law governs the liability of the issuer or nominated person with respect to the letter-of-credit right as provided in section 5116.
(3) This section does not apply to a security interest that is perfected only under section 9308(4).
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1978, Act 369, Eff. Jan. 1, 1979 ;-- Am. 1998, Act 278, Imd. Eff. July 27, 1998 ;-- Am. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-2. - Subpart 2. Perfection (440.9308...440.9316) › Section 440.9308 - When Security Interest or Agricultural Lien Is Perfected; Continuity of Perfection.

440.9308 When security interest or agricultural lien is perfected; continuity of perfection.
Sec. 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 requirements for perfection in sections 9310 through 9316 have been satisfied. A security interest is perfected when it attaches if the applicable requirements are satisfied before the security interest attaches.
(2) An agricultural lien is perfected if it has become effective and all of the applicable requirements for perfection in section 9310 have been satisfied. An agricultural lien is perfected when it becomes effective if the applicable requirements are satisfied before the agricultural lien becomes effective.
(3) A security interest or agricultural lien is perfected continuously if it is originally perfected by 1 method under this article and is later perfected by another method under this article, without an intermediate period when it was unperfected.
(4) Perfection of a security interest in collateral also perfects a security interest in a supporting obligation for the collateral.
(5) Perfection of a security interest in a right to payment or performance also perfects a security interest in a security interest, mortgage, or other lien on personal or real property securing the right.
(6) Perfection of a security interest in a securities account also perfects a security interest in the security entitlements carried in the securities account.
(7) Perfection of a security interest in a commodity account also perfects a security interest in the commodity contracts carried in the commodity account.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1978, Act 369, Eff. Jan. 1, 1979 ;-- Am. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-2. - Subpart 2. Perfection (440.9308...440.9316) › Section 440.9309 - Security Interest Perfected Upon Attachment.

440.9309 Security interest perfected upon attachment.
Sec. 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 section 9311(2) with respect to consumer goods that are subject to a statute or treaty described in section 9311(1).
(b) An assignment of accounts or payment intangibles which does not by itself or in conjunction with other assignments to the same assignee transfer a significant part of the assignor's outstanding accounts or payment intangibles.
(c) A sale of a payment intangible.
(d) A sale of a promissory note.
(e) A security interest created by the assignment of a health-care-insurance receivable to the provider of the health-care goods or services.
(f) A security interest arising under section 2401, 2505, 2711(3), or 2A508(5), until the debtor obtains possession of the collateral.
(g) A security interest of a collecting bank arising under section 4210.
(h) A security interest of an issuer or nominated person arising under section 5118.
(i) A security interest arising in the delivery of a financial asset under section 9206(3).
(j) A security interest in investment property created by a broker or securities intermediary.
(k) A security interest in a commodity contract or a commodity account created by a commodity intermediary.
(l) An assignment for the benefit of all creditors of the transferor and subsequent transfers by the assignee thereunder.
(m) A security interest created by an assignment of a beneficial interest in a decedent's estate.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1987, Act 16, Imd. Eff. Apr. 24, 1987 ;-- Am. 1998, Act 278, Imd. Eff. July 27, 1998 ;-- Am. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-2. - Subpart 2. Perfection (440.9308...440.9316) › Section 440.9310 - When Filing Required to Perfect Security Interest or Agricultural Lien; Security Interests and Agricultural Liens to Which Filing Provisions Do Not Apply.

440.9310 When filing required to perfect security interest or agricultural lien; security interests and agricultural liens to which filing provisions do not apply.
Sec. 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.
(2) The filing of a financing statement is not necessary to perfect 1 or more of the following:
(a) A security interest that is perfected under section 9308(4), (5), (6), or (7).
(b) A security interest that is perfected under section 9309 when it attaches.
(c) A security interest in property subject to a statute, regulation, or treaty described in section 9311(1).
(d) A security interest in goods in possession of a bailee that is perfected under section 9312(4)(a) or (b).
(e) A security interest in certificated securities, documents, goods, or instruments that is perfected without filing, control, or possession under section 9312(5), (6), or (7).
(f) A security interest in collateral in the secured party's possession under section 9313.
(g) A security interest in a certificated security that is perfected by delivery of the security certificate to the secured party under section 9313.
(h) A security interest in deposit accounts, electronic chattel paper, electronic documents, investment property, or letter-of-credit rights that is perfected by control under section 9314.
(i) A security interest in proceeds that is perfected under section 9315.
(j) A security interest that is perfected under section 9316.
(3) If a secured party assigns a perfected security interest or agricultural lien, a filing under this article is not required to continue the perfected status of the security interest against creditors of and transferees from the original debtor.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 2000, Act 348, Eff. July 1, 2001 ;-- Am. 2012, Act 87, Eff. July 1, 2013
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-2. - Subpart 2. Perfection (440.9308...440.9316) › Section 440.9314 - Perfection by Control.

440.9314 Perfection by control.
Sec. 9314.
(1) A security interest in investment property, deposit accounts, letter-of-credit rights, electronic chattel paper, or electronic documents may be perfected by control of the collateral under section 7106, 9104, 9105, 9106, or 9107.
(2) A security interest in deposit accounts, electronic chattel paper, letter-of-credit rights, or electronic documents is perfected by control under section 7106, 9104, 9105, or 9107 when the secured party obtains control and remains perfected by control only while the secured party retains control.
(3) A security interest in investment property is perfected by control under section 9106 from the time the secured party obtains control and remains perfected by control until both of the following occur:
(a) The secured party does not have control.
(b) One of the following occurs:
(i) If the collateral is a certificated security, the debtor has or acquires possession of the security certificate.
(ii) If the collateral is an uncertificated security, the issuer has registered or registers the debtor as the registered owner.
(iii) If the collateral is a security entitlement, the debtor is or becomes the entitlement holder.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 2000, Act 348, Eff. July 1, 2001 ;-- Am. 2012, Act 87, Eff. July 1, 2013
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-2. - Subpart 2. Perfection (440.9308...440.9316) › Section 440.9315 - Secured Party's Rights on Disposition of Collateral and in Proceeds.

440.9315 Secured party's rights on disposition of collateral and in proceeds.
Sec. 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 in collateral notwithstanding sale, lease, license, exchange, or other disposition thereof unless the secured party authorized the disposition free of the security interest or agricultural lien.
(b) A security interest attaches to any identifiable proceeds of collateral.
(2) Proceeds that are commingled with other property are identifiable proceeds to 1 of the following extents:
(a) If the proceeds are goods, to the extent provided by section 9336.
(b) If the proceeds are not goods, to the extent that the secured party identifies the proceeds by a method of tracing, including application of equitable principles, that is permitted under law other than this article with respect to commingled property of the type involved.
(3) A security interest in proceeds is a perfected security interest if the security interest in the original collateral was perfected.
(4) A perfected security interest in proceeds becomes unperfected on the twenty-first day after the security interest attaches to the proceeds unless 1 of the following is met:
(a) All of the following conditions are satisfied:
(i) A filed financing statement covers the original collateral.
(ii) The proceeds are collateral in which a security interest may be perfected by filing in the office in which the financing statement has been filed.
(iii) The proceeds are not acquired with cash proceeds.
(b) The proceeds are identifiable cash proceeds.
(c) The security interest in the proceeds is perfected other than under subsection (3) when the security interest attaches to the proceeds or within 20 days thereafter.
(5) If a filed financing statement covers the original collateral, a security interest in proceeds which remains perfected under subsection (4)(a) becomes unperfected at the later of when the effectiveness of the filed financing statement lapses under section 9515 or is terminated under section 9513, or the twenty-first day after the security interest attaches to the proceeds.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-3. - Subpart 3. Priority (440.9317...440.9339) › Section 440.9317 - Interests That Take Priority Over or Take Free of Unperfected Security Interest or Agricultural Lien.

440.9317 Interests that take priority over or take free of unperfected security interest or agricultural lien.
Sec. 9317.
(1) A security interest or agricultural lien is subordinate to the rights of 1 or more of the following:
(a) A person entitled to priority under section 9322.
(b) Except as otherwise provided in subsection (5), a person that becomes a lien creditor before the earlier of the following:
(i) The time the security interest or agricultural lien is perfected.
(ii) The time 1 of the conditions specified in section 9203(2)(c) is met and a financing statement covering the collateral is filed.
(2) Except as otherwise provided in subsection (5), a buyer, other than a secured party, of tangible chattel paper, tangible documents, goods, instruments, or a certificated security takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.
(3) Except as otherwise provided in subsection (5), a lessee of goods takes free of a security interest or agricultural lien if the lessee gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.
(4) A licensee of a general intangible or a buyer, other than a secured party, of collateral other than tangible chattel paper, tangible documents, goods, instruments, or a certificated security takes free of a security interest if the licensee or buyer gives value without knowledge of the security interest and before it is perfected.
(5) Except as otherwise provided in sections 9320 and 9321, if a person files a financing statement with respect to a purchase-money security interest before or within 20 days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee, or lien creditor that arise between the time the security interest attaches and the time of filing.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 2000, Act 348, Eff. July 1, 2001 ;-- Am. 2012, Act 87, Eff. July 1, 2013
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-3. - Subpart 3. Priority (440.9317...440.9339) › Section 440.9318 - No Interest Retained in Right to Payment That Is Sold; Rights and Title of Seller of Account or Chattel Paper With Respect to Creditors and Purchasers.

440.9318 No interest retained in right to payment that is sold; rights and title of seller of account or chattel paper with respect to creditors and purchasers.
Sec. 9318.
(1) A debtor that has sold an account, chattel paper, payment intangibles, or promissory note does not retain a legal or equitable interest in the collateral sold.
(2) For purposes of determining the rights of creditors of, and purchasers for value of an account or chattel paper from, a debtor that has sold an account or chattel paper, while the buyer's security interest is unperfected, the debtor is deemed to have rights and title to the account or chattel paper identical to those the debtor sold.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1978, Act 369, Eff. Jan. 1, 1979 ;-- Am. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-3. - Subpart 3. Priority (440.9317...440.9339) › Section 440.9319 - Rights and Title of Consignee With Respect to Creditors and Purchasers.

440.9319 Rights and title of consignee with respect to creditors and purchasers.
Sec. 9319.
(1) Except as otherwise provided in subsection (2), for purposes of determining the rights of creditors of, and purchasers for value of goods from, a consignee, while the goods are in the possession of the consignee, the consignee is deemed to have rights and title to the goods identical to those the consignor had or had power to transfer.
(2) For purposes of determining the rights of a creditor of a consignee, law other than this article determines the rights and title of a consignee while goods are in the consignee's possession if, under this part, a perfected security interest held by the consignor would have priority over the rights of the creditor.
History:
Add. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-3. - Subpart 3. Priority (440.9317...440.9339) › Section 440.9321 - Licensee of General Intangible and Lessee of Goods in Ordinary Course of Business.

440.9321 Licensee of general intangible and lessee of goods in ordinary course of business.
Sec. 9321.
(1) As used in this section, "licensee in ordinary course of business" means a person that becomes a licensee of a general intangible in good faith, without knowledge that the license violates the rights of another person in the general intangible, and in the ordinary course from a person in the business of licensing general intangibles of that kind. A person becomes a licensee in the ordinary course if the license to the person comports with the usual or customary practices in the kind of business in which the licensor is engaged or with the licensor's own usual or customary practices.
(2) A licensee in ordinary course of business takes its rights under a nonexclusive license free of a security interest in the general intangible created by the licensor, even if the security interest is perfected and the licensee knows of its existence.
(3) A lessee in ordinary course of business takes its leasehold interest free of a security interest in the goods created by the lessor, even if the security interest is perfected and the lessee knows of its existence.
History:
Add. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-3. - Subpart 3. Priority (440.9317...440.9339) › Section 440.9323 - Future Advances.

440.9323 Future advances.
Sec. 9323.
(1) Except as otherwise provided in subsection (3), for purposes of determining the priority of a perfected security interest under section 9322(1)(a), perfection of the security interest dates from the time an advance is made to the extent that the security interest secures an advance that meets both of the following:
(a) Is made while the security interest is perfected only under 1 of the following:
(i) Under section 9309 when it attaches.
(ii) Temporarily under section 9312(5), (6), or (7).
(b) Is not made pursuant to a commitment entered into before or while the security interest is perfected by a method other than under section 9309 or 9312(5), (6), or (7).
(2) Except as otherwise provided in subsection (3), a security interest is subordinate to the rights of a person that becomes a lien creditor to the extent that the security interest secures an advance made more than 45 days after the person becomes a lien creditor unless the advance is made without knowledge of the lien, or pursuant to a commitment entered into without knowledge of the lien.
(3) Subsections (1) and (2) do not apply to a security interest held by a secured party that is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor.
(4) Except as otherwise provided in subsection (5), a buyer of goods other than a buyer in ordinary course of business takes free of a security interest to the extent that it secures advances made after the earlier of the following:
(a) The time the secured party acquires knowledge of the buyer's purchase.
(b) Forty-five days after the purchase.
(5) Subsection (4) does not apply if the advance is made pursuant to a commitment entered into without knowledge of the buyer's purchase and before the expiration of the 45-day period.
(6) Except as otherwise provided in subsection (7), a lessee of goods, other than a lessee in ordinary course of business, takes the leasehold interest free of a security interest to the extent that it secures advances made after the earlier of the following:
(a) The time the secured party acquires knowledge of the lease.
(b) Forty-five days after the lease contract becomes enforceable.
(7) Subsection (6) does not apply if the advance is made pursuant to a commitment entered into without knowledge of the lease and before the expiration of the 45-day period.
History:
Add. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-3. - Subpart 3. Priority (440.9317...440.9339) › Section 440.9325 - Priority of Security Interests in Transferred Collateral.

440.9325 Priority of security interests in transferred collateral.
Sec. 9325.
(1) Except as otherwise provided in subsection (2), a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if all of the following are met:
(a) The debtor acquired the collateral subject to the security interest created by the other person.
(b) The security interest created by the other person was perfected when the debtor acquired the collateral.
(c) There is no period thereafter when the security interest is unperfected.
(2) Subsection (1) subordinates a security interest only if the security interest otherwise would have priority solely under section 9322(1) or 9324, or arose solely under section 2711(3) or 2A508(5).
History:
Add. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-3. - Subpart 3. Priority (440.9317...440.9339) › Section 440.9326 - Priority of Security Interests Created by New Debtor.

440.9326 Priority of security interests created by new debtor.
Sec. 9326.
(1) Subject to subsection (2), a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and is perfected solely by a filed financing statement that would be ineffective to perfect the security interest but for the application of section 9316(9)(a) or 9508 is subordinate to a security interest in the same collateral that is perfected other than by such a filed financing statement.
(2) The other provisions of this part determine the priority among conflicting security interests in the same collateral perfected by filed financing statements described in subsection (1). However, if the security agreements to which a new debtor became bound as debtor were not entered into by the same original debtor, the conflicting security interests rank according to priority in time of the new debtor's having become bound.
History:
Add. 2000, Act 348, Eff. July 1, 2001 ;-- Am. 2012, Act 88, Eff. July 1, 2013
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-3. - Subpart 3. Priority (440.9317...440.9339) › Section 440.9327 - Priority of Security Interests in Deposit Account.

440.9327 Priority of security interests in deposit account.
Sec. 9327.
The following rules govern priority among conflicting security interests in the same deposit account:
(a) A security interest held by a secured party having control of the deposit account under section 9104 has priority over a conflicting security interest held by a secured party that does not have control.
(b) Except as otherwise provided in subdivisions (c) and (d), security interests perfected by control under section 9314 rank according to priority in time of obtaining control.
(c) Except as otherwise provided in subdivision (d), a security interest held by the bank with which the deposit account is maintained has priority over a conflicting security interest held by another secured party.
(d) A security interest perfected by control under section 9104(1)(c) has priority over a security interest held by the bank with which the deposit account is maintained.
History:
Add. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-3. - Subpart 3. Priority (440.9317...440.9339) › Section 440.9328 - Priority of Security Interests in Investment Property.

440.9328 Priority of security interests in investment property.
Sec. 9328.
The following rules govern priority among conflicting security interests in the same investment property:
(a) A security interest held by a secured party having control of investment property under section 9106 has priority over a security interest held by a secured party that does not have control of the investment property.
(b) Except as otherwise provided in subdivisions (c) and (d), conflicting security interests held by secured parties each of which has control under section 9106 rank according to priority in time of 1 of the following:
(i) If the collateral is a security, obtaining control.
(ii) If the collateral is a security entitlement carried in a securities account, according to 1 of the following:
(A) If the secured party obtained control under section 8106(4)(a), the secured party's becoming the person for which the securities account is maintained.
(B) If the secured party obtained control under section 8106(4)(b), the securities intermediary's agreement to comply with the secured party's entitlement orders with respect to security entitlements carried or to be carried in the securities account.
(C) If the secured party obtained control through another person under section 8106(4)(c), the time on which priority would be based under this paragraph if the other person were the secured party.
(iii) If the collateral is a commodity contract carried with a commodity intermediary, the satisfaction of the requirement for control specified in section 9106(2)(b) with respect to commodity contracts carried or to be carried with the commodity intermediary.
(c) A security interest held by a securities intermediary in a security entitlement or a securities account maintained with the securities intermediary has priority over a conflicting security interest held by another secured party.
(d) A security interest held by a commodity intermediary in a commodity contract or a commodity account maintained with the commodity intermediary has priority over a conflicting security interest held by another secured party.
(e) A security interest in a certificated security in registered form that is perfected by taking delivery under section 9313(1) and not by control under section 9314 has priority over a conflicting security interest perfected by a method other than control.
(f) Conflicting security interests created by a broker, securities intermediary, or commodity intermediary that are perfected without control under section 9106 rank equally.
(g) In all other cases, priority among conflicting security interests in investment property is governed by sections 9322 and 9323.
History:
Add. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-3. - Subpart 3. Priority (440.9317...440.9339) › Section 440.9329 - Priority of Security Interests in Letter-of-Credit Right.

440.9329 Priority of security interests in letter-of-credit right.
Sec. 9329.
The following rules govern priority among conflicting security interests in the same letter-of-credit right:
(a) A security interest held by a secured party having control of the letter-of-credit right under section 9107 has priority to the extent of its control over a conflicting security interest held by a secured party that does not have control.
(b) Security interests perfected by control under section 9314 rank according to priority in time of obtaining control.
History:
Add. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-3. - Subpart 3. Priority (440.9317...440.9339) › Section 440.9330 - Priority of Purchaser of Chattel Paper or Instrument.

440.9330 Priority of purchaser of chattel paper or instrument.
Sec. 9330.
(1) A purchaser of chattel paper has priority over a security interest in the chattel paper that is claimed merely as proceeds of inventory subject to a security interest if both of the following are met:
(a) In good faith and in the ordinary course of the purchaser's business, the purchaser gives new value and takes possession of the chattel paper or obtains control of the chattel paper under section 9105.
(b) The chattel paper does not indicate that it has been assigned to an identified assignee other than the purchaser.
(2) A purchaser of chattel paper has priority over a security interest in the chattel paper that is claimed other than merely as proceeds of inventory subject to a security interest if the purchaser gives new value and takes possession of the chattel paper or obtains control of the chattel paper under section 9105 in good faith, in the ordinary course of the purchaser's business, and without knowledge that the purchase violates the rights of the secured party.
(3) Except as otherwise provided in section 9327, a purchaser having priority in chattel paper under subsection (1) or (2) also has priority in proceeds of the chattel paper to the extent that section 9322 provides for priority in the proceeds, or the proceeds consist of the specific goods covered by the chattel paper or cash proceeds of the specific goods, even if the purchaser's security interest in the proceeds is unperfected.
(4) Except as otherwise provided in section 9331(1), a purchaser of an instrument has priority over a security interest in the instrument perfected by a method other than possession if the purchaser gives value and takes possession of the instrument in good faith and without knowledge that the purchase violates the rights of the secured party.
(5) For purposes of subsections (1) and (2), the holder of a purchase-money security interest in inventory gives new value for chattel paper constituting proceeds of the inventory.
(6) For purposes of subsections (2) and (4), if chattel paper or an instrument indicates that it has been assigned to an identified secured party other than the purchaser, a purchaser of the chattel paper or instrument has knowledge that the purchase violates the rights of the secured party.
History:
Add. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-3. - Subpart 3. Priority (440.9317...440.9339) › Section 440.9331 - Priority of Rights of Purchasers of Instruments, Documents, and Securities Under Other Articles; Priority of Interests in Financial Assets and Security Entitlements Under Article 8.

440.9331 Priority of rights of purchasers of instruments, documents, and securities under other articles; priority of interests in financial assets and security entitlements under article 8.
Sec. 9331.
(1) This article does not limit the rights of a holder in due course of a negotiable instrument, a holder to which a negotiable document of title has been duly negotiated, or a protected purchaser of a security. These holders or purchasers take priority over an earlier security interest, even if perfected, to the extent provided in articles 3, 7, and 8.
(2) This article does not limit the rights of or impose liability on a person to the extent that the person is protected against the assertion of a claim under article 8.
(3) Filing under this article does not constitute notice of a claim or defense to the holders, or purchasers, or persons described in subsections (1) and (2).
History:
Add. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-3. - Subpart 3. Priority (440.9317...440.9339) › Section 440.9332 - Transfer of Money; Transfer of Funds From Deposit Account.

440.9332 Transfer of money; transfer of funds from deposit account.
Sec. 9332.
(1) A transferee of money takes the money free of a security interest unless the transferee acts in collusion with the debtor in violating the rights of the secured party.
(2) A transferee of funds from a deposit account takes the funds free of a security interest in the deposit account unless the transferee acts in collusion with the debtor in violating the rights of the secured party.
History:
Add. 2000, Act 348, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 9 - Secured Transactions (440.9101...440.9994) › 174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342) › 174-1962-9-3-3. - Subpart 3. Priority (440.9317...440.9339) › Section 440.9333 - Priority of Certain Liens Arising by Operation of Law.

440.9333 Priority of certain liens arising by operation of law.
Sec. 9333.
(1) As used in this section, "possessory lien" means an interest, other than a security interest or an agricultural lien, that meets all of the following:
(a) It secures payment or performance of an obligation for services or materials furnished with respect to goods by a person in the ordinary course of the person's business.
(b) It is created by statute or rule of law in favor of the person.
(c) Its effectiveness depends on the person's possession of the goods.
(2) A possessory lien on goods has priority over a security interest in the goods unless the lien is created by a statute that expressly provides otherwise.
History:
Add. 2000, Act 348, Eff. July 1, 2001