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 8 - Investment Securities (440.8101...440.8601) › 174-1962-8-4 - Part 4 Registration (440.8401...440.8408) › Section 440.8404 - Liability of Issuer for Wrongful Registration or Transfer.

440.8404 Liability of issuer for wrongful registration or transfer.
Sec. 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 a security to a person not entitled to it, and the transfer was registered in 1 or more of the following ways:
(a) Pursuant to an ineffective indorsement or instruction.
(b) After a demand that the issuer not register transfer became effective under section 8403(1) and the issuer did not comply with section 8403(2).
(c) After the issuer had been served with an injunction, restraining order, or other legal process enjoining it from registering the transfer, issued by a court of competent jurisdiction, and the issuer had a reasonable opportunity to act on the injunction, restraining order, or other legal process.
(d) By an issuer acting in collusion with the wrongdoer.
(2) An issuer that is liable for wrongful registration of transfer under subsection (1) on demand shall provide the person entitled to the security with a like certificated or uncertificated security, and any payments or distributions that the person did not receive as a result of the wrongful registration. If an overissue would result, the issuer's liability to provide the person with a like security is governed by section 8210.
(3) Except as otherwise provided in subsection (1) or in a law relating to the collection of taxes, an issuer is not liable to an owner or other person suffering loss as a result of the registration of a transfer of a security if registration was made pursuant to an effective indorsement or instruction.
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
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 8 - Investment Securities (440.8101...440.8601) › 174-1962-8-4 - Part 4 Registration (440.8401...440.8408) › Section 440.8405 - Lost, Destroyed, or Wrongfully Taken Securities.

440.8405 Lost, destroyed, or wrongfully taken securities.
Sec. 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, the issuer shall issue a new certificate if the owner does all of the following:
(a) Requests before the issuer has notice that the certificate has been acquired by a protected purchaser.
(b) Files with the issuer a sufficient indemnity bond.
(c) Satisfies other reasonable requirements imposed by the issuer.
(2) If, after the issue of a new security certificate, a protected purchaser of the original certificate presents it for registration of transfer, the issuer shall register the transfer unless an overissue would result. In that case, the issuer's liability is governed by section 8210. In addition to any rights on the indemnity bond, an issuer may recover the new certificate from a person to whom it was issued or any person taking under that person, except a protected purchaser.
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
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 8 - Investment Securities (440.8101...440.8601) › 174-1962-8-4 - Part 4 Registration (440.8401...440.8408) › Section 440.8406 - Lost, Destroyed, or Wrongfully Taken Security Certificate; Failure to Notify Issuer.

440.8406 Lost, destroyed, or wrongfully taken security certificate; failure to notify issuer.
Sec. 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 a reasonable time after the owner has notice of it and the issuer registers a transfer of the security before receiving notification, the owner may not assert against the issuer a claim for registering the transfer under section 8404 or a claim to a new security certificate under section 8405.
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
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 8 - Investment Securities (440.8101...440.8601) › 174-1962-8-4 - Part 4 Registration (440.8401...440.8408) › Section 440.8407 - Authenticating Trustee, Transfer Agent, Registrar, or Other Agent; Obligation to Holder or Owner of Certificate.

440.8407 Authenticating trustee, transfer agent, registrar, or other agent; obligation to holder or owner of certificate.
Sec. 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, in the issue of new security certificates or uncertificated securities, or in the cancellation of surrendered security certificates has the same obligation to the holder or owner of a certificated or uncertificated security with regard to the particular functions performed as the issuer has in regard to those functions.
History:
Add. 1987, Act 16, Imd. Eff. Apr. 24, 1987 ;-- Am. 1998, Act 278, Imd. Eff. July 27, 1998
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 8 - Investment Securities (440.8101...440.8601) › 174-1962-8-4 - Part 4 Registration (440.8401...440.8408) › Section 440.8408 - Repealed. 1998, Act 278, Imd. Eff. July 27, 1998.

440.8408 Repealed. 1998, Act 278, Imd. Eff. July 27, 1998.
Compiler's Notes:
The repealed section pertained to written statements sent by issuer to new registered owner.
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 8 - Investment Securities (440.8101...440.8601) › 174-1962-8-5 - Part 5 Security Entitlements (440.8501...440.8511) › Section 440.8501 - “Securities Account” Defined; Acquisition of Security Entitlement; Conditions; Directly Held Financial Asset; Issuance Not as Security Entitlement.

440.8501 “Securities account” defined; acquisition of security entitlement; conditions; directly held financial asset; issuance not as security entitlement.
Sec. 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 maintaining the account undertakes to treat the person for whom the account is maintained as entitled to exercise the rights that comprise the financial asset.
(2) Except as otherwise provided in subsections (4) and (5), a person acquires a security entitlement if a securities intermediary does 1 or more of the following:
(a) Indicates by book entry that a financial asset has been credited to the person's securities account.
(b) Receives a financial asset from the person or acquires a financial asset for the person and, in either case, accepts it for credit to the person's securities account.
(c) Becomes obligated under other law, regulation, or rule to credit a financial asset to the person's securities account.
(3) If 1 or more conditions described in subsection (2)(a), (b), or (c) have been met, a person has a security entitlement even though the securities intermediary does not itself hold the financial asset.
(4) If a securities intermediary holds a financial asset for another person, and the financial asset is registered in the name of, payable to the order of, or specially indorsed to the other person, and has not been indorsed to the securities intermediary or in blank, the other person is treated as holding the financial asset directly rather than as having a security entitlement with respect to the financial asset.
(5) Issuance of a security is not establishment of a security entitlement.
History:
Add. 1998, Act 278, Imd. Eff. July 27, 1998
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 8 - Investment Securities (440.8101...440.8601) › 174-1962-8-5 - Part 5 Security Entitlements (440.8501...440.8511) › Section 440.8502 - Action Based on Adverse Claim.

440.8502 Action based on adverse claim.
Sec. 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 not be asserted against a person who acquires a security entitlement under section 8501 for value and without notice of the adverse claim.
History:
Add. 1998, Act 278, Imd. Eff. July 27, 1998
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 8 - Investment Securities (440.8101...440.8601) › 174-1962-8-5 - Part 5 Security Entitlements (440.8501...440.8511) › Section 440.8503 - Entitlement Holder Property Interest.

440.8503 Entitlement holder property interest.
Sec. 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 financial asset held by the securities intermediary are held by the securities intermediary for the entitlement holders, are not property of the securities intermediary, and are not subject to claims of creditors of the securities intermediary, except as otherwise provided in section 8511.
(2) An entitlement holder's property interest with respect to a particular financial asset under subsection (1) is a pro rata property interest in all interests in that financial asset held by the securities intermediary, without regard to the time the entitlement holder acquired the security entitlement or the time the securities intermediary acquired the interest in that financial asset.
(3) An entitlement holder's property interest with respect to a particular financial asset under subsection (1) may be enforced against the securities intermediary only by exercise of the entitlement holder's rights under sections 8505 through 8508.
(4) An entitlement holder's property interest with respect to a particular financial asset under subsection (1) may be enforced against a purchaser of the financial asset or interest in the financial asset only if all of the following apply:
(a) Insolvency proceedings have been initiated by or against the securities intermediary.
(b) The securities intermediary does not have sufficient interests in the financial asset to satisfy the security entitlements of all of its entitlement holders to that financial asset.
(c) The securities intermediary violated its obligations under section 8504 by transferring the financial asset or interest therein to the purchaser.
(d) The purchaser is not protected under subsection (5). The trustee or other liquidator, acting on behalf of all entitlement holders having security entitlements with respect to a particular financial asset, may recover the financial asset, or interest in a financial asset, from the purchaser. If the trustee or other liquidator elects not to pursue that right, an entitlement holder whose security entitlement remains unsatisfied has the right to recover its interest in the financial asset from the purchaser.
(5) An action based on the entitlement holder's property interest with respect to a particular financial asset under subsection (1), whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against any purchaser of a financial asset or interest therein who gives value, obtains control, and does not act in collusion with the securities intermediary in violating the securities intermediary's obligations under section 8504.
History:
Add. 1998, Act 278, Imd. Eff. July 27, 1998
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 8 - Investment Securities (440.8101...440.8601) › 174-1962-8-5 - Part 5 Security Entitlements (440.8501...440.8511) › Section 440.8504 - Maintenance of Financial Asset by Securities Intermediary; Quantity; Manner; Limitation; Duties; Applicability to Clearing Corporation.

440.8504 Maintenance of financial asset by securities intermediary; quantity; manner; limitation; duties; applicability to clearing corporation.
Sec. 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 has established in favor of its entitlement holders with respect to that financial asset. The securities intermediary may maintain those financial assets directly or through 1 or more other securities intermediaries.
(2) Except to the extent otherwise agreed by its entitlement holder, a securities intermediary may not grant any security interests in a financial asset it is obligated to maintain pursuant to subsection (1).
(3) A securities intermediary satisfies the duty in subsection (1) if the securities intermediary does either of the following:
(a) Acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary.
(b) In the absence of agreement, exercises due care in accordance with reasonable commercial standards to obtain and maintain the financial asset.
(4) This section does not apply to a clearing corporation that is itself the obligor of an option or similar obligation to which its entitlement holders have security entitlements.
History:
Add. 1998, Act 278, Imd. Eff. July 27, 1998
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 8 - Investment Securities (440.8101...440.8601) › 174-1962-8-5 - Part 5 Security Entitlements (440.8501...440.8511) › Section 440.8505 - Obtaining Payment or Distribution Made by Issuer of Financial Asset; Duties and Obligations of Securities Intermediary.

440.8505 Obtaining payment or distribution made by issuer of financial asset; duties and obligations of securities intermediary.
Sec. 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 if the securities intermediary does either of the following:
(a) Acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary.
(b) In the absence of agreement, exercise due care in accordance with reasonable commercial standards to attempt to obtain the payment or distribution.
(2) A securities intermediary is obligated to its entitlement holder for a payment or distribution made by the issuer of a financial asset if the payment or distribution is received by the securities intermediary.
History:
Add. 1998, Act 278, Imd. Eff. July 27, 1998
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 8 - Investment Securities (440.8101...440.8601) › 174-1962-8-5 - Part 5 Security Entitlements (440.8501...440.8511) › Section 440.8506 - Duty of Securities Intermediary to Exercise Rights With Respect to Financial Asset; Conditions.

440.8506 Duty of securities intermediary to exercise rights with respect to financial asset; conditions.
Sec. 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 satisfied if the securities intermediary does either of the following:
(a) Acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary.
(b) In the absence of agreement, either places the entitlement holder in a position to exercise the rights directly or exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.
History:
Add. 1998, Act 278, Imd. Eff. July 27, 1998
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 8 - Investment Securities (440.8101...440.8601) › 174-1962-8-5 - Part 5 Security Entitlements (440.8501...440.8511) › Section 440.8507 - Compliance With Entitlement Order by Securities Intermediary; Conditions; Wrongful Transfer of Financial Asset Pursuant to Ineffective Entitlement Order; Liability.

440.8507 Compliance with entitlement order by securities intermediary; conditions; wrongful transfer of financial asset pursuant to ineffective entitlement order; liability.
Sec. 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 reasonable opportunity to assure itself that the entitlement order is genuine and authorized, and the securities intermediary has had reasonable opportunity to comply with the entitlement order. The duty is satisfied if a securities intermediary does either of the following:
(a) Acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary.
(b) In the absence of agreement, exercises due care in accordance with reasonable commercial standards to comply with the entitlement order.
(2) If a securities intermediary transfers a financial asset pursuant to an ineffective entitlement order, the securities intermediary shall reestablish a security entitlement in favor of the person entitled to it, and pay or credit any payments or distributions that the person did not receive as a result of the wrongful transfer. If the securities intermediary does not reestablish a security entitlement, the securities intermediary is liable to the entitlement holder for damages.
History:
Add. 1998, Act 278, Imd. Eff. July 27, 1998
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 8 - Investment Securities (440.8101...440.8601) › 174-1962-8-5 - Part 5 Security Entitlements (440.8501...440.8511) › Section 440.8508 - Changing Security Entitlement Into Another Form of Holding; Transferring Financial Asset to Securities Account of Entitlement Holder; Duties of Securities Intermediary; Conditions.

440.8508 Changing security entitlement into another form of holding; transferring financial asset to securities account of entitlement holder; duties of securities intermediary; conditions.
Sec. 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 which the entitlement holder is eligible, or to cause the financial asset to be transferred to a securities account of the entitlement holder with another securities intermediary. The duty is satisfied if a securities intermediary does either of the following:
(a) Acts as agreed upon by the entitlement holder and the securities intermediary.
(b) In the absence of agreement, exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.
History:
Add. 1998, Act 278, Imd. Eff. July 27, 1998
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 8 - Investment Securities (440.8101...440.8601) › 174-1962-8-5 - Part 5 Security Entitlements (440.8501...440.8511) › Section 440.8509 - Performance of Duties by Securities Intermediary.

440.8509 Performance of duties by securities intermediary.
Sec. 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 rule, compliance with the statute, regulation, or rule satisfies the duty.
(2) To the extent that specific standards for the performance of the duties of a securities intermediary or the exercise of the rights of an entitlement holder are not specified by other statute, regulation, or rule or by agreement between the securities intermediary and entitlement holder, the securities intermediary shall perform its duties and the entitlement holder shall exercise its rights in a commercially reasonable manner.
(3) The obligation of a securities intermediary to perform the duties imposed by sections 8504 through 8508 is subject to both of the following:
(a) Rights of the securities intermediary arising out of a security interest under a security agreement with the entitlement holder or otherwise.
(b) Rights of the securities intermediary under other law, regulation, rule, or agreement to withhold performance of its duties as a result of unfulfilled obligations of the entitlement holder to the securities intermediary.
(4) Sections 8504 through 8508 do not require a securities intermediary to take any action that is prohibited by other statute, regulation, or rule.
History:
Add. 1998, Act 278, Imd. Eff. July 27, 1998
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 8 - Investment Securities (440.8101...440.8601) › 174-1962-8-5 - Part 5 Security Entitlements (440.8501...440.8511) › Section 440.8510 - Assertion of Action Based on Adverse Claim; Prohibition; Conditions; Priority.

440.8510 Assertion of action based on adverse claim; prohibition; conditions; priority.
Sec. 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 adverse claim to a financial asset or security entitlement, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a person who purchases a security entitlement, or an interest in a security entitlement, from an entitlement holder if the purchaser gives value, does not have notice of the adverse claim, and obtains control.
(2) If an adverse claim could not have been asserted against an entitlement holder under section 8502, the adverse claim cannot be asserted against a person who purchases a security entitlement, or an interest in a security entitlement, from the entitlement holder.
(3) In a case not covered by the priority rules in article 9, a purchaser for value of a security entitlement, or an interest in a security entitlement, who obtains control has priority over a purchaser of a security entitlement, or an interest in a security entitlement, who does not obtain control. Except as otherwise provided in subsection (4), purchasers who have control rank according to priority in time of 1 of the following:
(a) The purchaser's becoming the person for whom the securities account, in which the security entitlement is carried, is maintained, if the purchaser obtained control under section 8106(4)(a).
(b) The securities intermediary's agreement to comply with the purchaser's entitlement orders with respect to security entitlements carried or to be carried in the securities account in which the security entitlement is carried, if the purchaser obtained control under section 8106(4)(b).
(c) If the purchaser obtained control through another person under section 8106(4)(c), the time on which priority would be based under this subsection if the other person were the secured party.
(4) A securities intermediary as purchaser has priority over a conflicting purchaser who has control unless otherwise agreed by the securities intermediary.
History:
Add. 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 8 - Investment Securities (440.8101...440.8601) › 174-1962-8-5 - Part 5 Security Entitlements (440.8501...440.8511) › Section 440.8511 - Priority of Claims.

440.8511 Priority of claims.
Sec. 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 satisfy both its obligations to entitlement holders who have security entitlements to that financial asset and its obligation to a creditor of the securities intermediary who has a security interest in that financial asset, the claims of entitlement holders, other than the creditor, have priority over the claim of the creditor.
(2) A claim of a creditor of a securities intermediary who has a security interest in a financial asset held by a securities intermediary has priority over claims of the securities intermediary's entitlement holders who have security entitlements with respect to that financial asset if the creditor has control over the financial asset.
(3) If a clearing corporation does not have sufficient financial assets to satisfy both its obligations to entitlement holders who have security entitlements with respect to a financial asset and its obligation to a creditor of the clearing corporation who has a security interest in that financial asset, the claim of the creditor has priority over the claims of entitlement holders.
History:
Add. 1998, Act 278, Imd. Eff. July 27, 1998
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 8 - Investment Securities (440.8101...440.8601) › 174-1962-8-6 - Part 6 (440.8601...440.8601) › Section 440.8601 - Action or Proceeding Commenced Before Act Takes Effect; Security Interest Perfected at Date Act Takes Effect.

440.8601 Action or proceeding commenced before act takes effect; security interest perfected at date act takes effect.
Sec. 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 security interest in a security is perfected at the date this amendatory act that added this section takes effect, and the action by which the security interest was perfected would suffice to perfect a security interest under this amendatory act no further action is required to continue perfection. If a security interest in a security is perfected at the date this amendatory act that added this section takes effect but the action by which the security interest was perfected would not suffice to perfect a security interest under this amendatory act, the security interest remains perfected for a period of 4 months after the effective date and continues perfected thereafter if appropriate action to perfect under this act is taken within that period. If a security interest is perfected at the date this amendatory act that added this section takes effect and the security interest can be perfected by filing under this act, a financing statement signed by the secured party instead of the debtor may be filed within that period to continue perfection or thereafter to perfect.
History:
Add. 1998, Act 278, Imd. Eff. July 27, 1998
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) › 174-1962-9-1 - Part 1 General Provisions (440.9101...440.9116) › 174-1962-9-1-1. - Subpart 1. Short Title, Definitions, and General Concepts (440.9101...440.9108) › Section 440.9101 - Uniform Commercial Code—secured Transactions; Short Title.

440.9101 Uniform commercial code—secured transactions; short title.
Sec. 9101.
This article shall be known and may be cited as "uniform commercial code—secured transactions".
History:
1962, Act 174, Eff. Jan. 1, 1964
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) › 174-1962-9-1 - Part 1 General Provisions (440.9101...440.9116) › 174-1962-9-1-1. - Subpart 1. Short Title, Definitions, and General Concepts (440.9101...440.9108) › Section 440.9104 - Control of Deposit Account.

440.9104 Control of deposit account.
Sec. 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 with which the deposit account is maintained.
(b) The debtor, secured party, and bank have agreed in an authenticated record that the bank will comply with instructions originated by the secured party directing disposition of the funds in the deposit account without further consent by the debtor.
(c) The secured party becomes the bank's customer with respect to the deposit account.
(2) A secured party that has satisfied subsection (1) has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1978, Act 369, Eff. Jan. 1, 1979 ;-- 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) › 174-1962-9-1 - Part 1 General Provisions (440.9101...440.9116) › 174-1962-9-1-1. - Subpart 1. Short Title, Definitions, and General Concepts (440.9101...440.9108) › Section 440.9105 - Control of Electronic Chattel Paper.

440.9105 Control of electronic chattel paper.
Sec. 9105.
(1) A secured party has control of electronic chattel paper if a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned.
(2) A system satisfies subsection (1) if the record or records comprising the chattel paper are created, stored, and assigned in such a manner that all of the following apply:
(a) A single authoritative copy of the record or records exists which is unique, identifiable, and, except as otherwise provided in subdivisions (d), (e), and (f), unalterable.
(b) The authoritative copy identifies the secured party as the assignee of the record or records.
(c) The authoritative copy is communicated to and maintained by the secured party or its designated custodian.
(d) Copies or amendments that add or change an identified assignee of the authoritative copy can be made only with the consent of the secured party.
(e) Each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy.
(f) Any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.
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. 1988, Act 130, Eff. Sept. 1, 1988 ;-- 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 ;-- 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) › 174-1962-9-1 - Part 1 General Provisions (440.9101...440.9116) › 174-1962-9-1-1. - Subpart 1. Short Title, Definitions, and General Concepts (440.9101...440.9108) › Section 440.9106 - Control of Investment Property.

440.9106 Control of investment property.
Sec. 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 of a commodity contract if either of the following is met:
(a) The secured party is the commodity intermediary with which the commodity contract is carried.
(b) The commodity customer, secured party, and commodity intermediary have agreed that the commodity intermediary will apply any value distributed on account of the commodity contract as directed by the secured party without further consent by the commodity customer.
(3) A secured party having control of all security entitlements or commodity contracts carried in a securities account or commodity account has control over the securities account or commodity account.
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. 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) › 174-1962-9-1 - Part 1 General Provisions (440.9101...440.9116) › 174-1962-9-1-1. - Subpart 1. Short Title, Definitions, and General Concepts (440.9101...440.9108) › Section 440.9107 - Control of Letter-of-Credit Right.

440.9107 Control of letter-of-credit right.
Sec. 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 nominated person if the issuer or nominated person has consented to an assignment of proceeds of the letter of credit under section 5114(3) or otherwise applicable law or practice.
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) › 174-1962-9-1 - Part 1 General Provisions (440.9101...440.9116) › 174-1962-9-1-1. - Subpart 1. Short Title, Definitions, and General Concepts (440.9101...440.9108) › Section 440.9108 - Sufficiency of Description.

440.9108 Sufficiency of description.
Sec. 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 specific, if it reasonably identifies what is described.
(2) Except as otherwise provided in subsection (4), a description of collateral reasonably identifies the collateral if it identifies the collateral by 1 or more of the following:
(a) Specific listing.
(b) Category.
(c) Except as otherwise provided in subsection (5), a type of collateral defined in the uniform commercial code.
(d) Quantity.
(e) Computational or allocational formula or procedure.
(f) Except as otherwise provided in subsection (3), any other method, if the identity of the collateral is objectively determinable.
(3) A description of collateral as "all the debtor's assets" or "all the debtor's personal property" or using words of similar import does not reasonably identify the collateral.
(4) Except as otherwise provided in subsection (5), a description of a security entitlement, securities account, or commodity account is sufficient if it describes 1 or more of the following:
(a) The collateral by the term security entitlement, securities account, or commodity account, or as investment property.
(b) The underlying financial asset or commodity contract.
(5) A description only by type of collateral defined in the uniform commercial code is an insufficient description of either of the following:
(a) A commercial tort claim.
(b) In a consumer transaction, consumer goods, a security entitlement, a securities account, or a commodity account.
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) › 174-1962-9-1 - Part 1 General Provisions (440.9101...440.9116) › 174-1962-9-1-2. - Subpart 2. Applicability of Article (440.9109...440.9116) › Section 440.9110 - Security Interests Arising Under Article 2 or 2a.

440.9110 Security interests arising under article 2 or 2A.
Sec. 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 goods, all of the following apply:
(a) The security interest is enforceable, even if section 9203(2)(c) has not been satisfied.
(b) Filing is not required to perfect the security interest.
(c) The rights of the secured party after default by the debtor are governed by article 2 or 2A.
(d) The security interest has priority over a conflicting security interest created by the debtor.
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) › 174-1962-9-1 - Part 1 General Provisions (440.9101...440.9116) › 174-1962-9-1-2. - Subpart 2. Applicability of Article (440.9109...440.9116) › Section 440.9111 - Repealed. 1998, Act 489, Imd. Eff. Jan. 4, 1999.

440.9111 Repealed. 1998, Act 489, Imd. Eff. Jan. 4, 1999.
Compiler's Notes:
The repealed section pertained to creation of security interest as bulk transfer.
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) › 174-1962-9-1 - Part 1 General Provisions (440.9101...440.9116) › 174-1962-9-1-2. - Subpart 2. Applicability of Article (440.9109...440.9116) › Section 440.9112-440.9116 - Repealed. 2000, Act 348, Eff. July 1, 2001.

440.9112-440.9116 Repealed. 2000, Act 348, Eff. July 1, 2001.
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 buyer obligations.
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) › 174-1962-9-2-1. - Subpart 1. Effectiveness and Attachment (440.9201...440.9206) › Section 440.9201 - General Effectiveness of Security Agreement.

440.9201 General effectiveness of security agreement.
Sec. 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, and against creditors.
(2) A transaction subject to this article is subject to any applicable rule of law that establishes a different rule for consumers and to each of the following, as applicable:
(a) The regulatory loan act of 1963, 1939 PA 21, MCL 493.1 to 493.26.
(b) 1939 PA 305, MCL 566.301 to 566.302.
(c) The motor vehicle sales finance act, 1950 (Ex Sess) PA 27, MCL 492.101 to 492.141.
(d) The mobile home commission act, 1987 PA 96, MCL 125.2301 to 125.2349.
(e) The Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923.
(f) 1978 PA 387, MCL 257.931 to 257.937.
(g) 1986 PA 87, MCL 257.1401 to 257.1410.
(h) The grain dealers act, 1939 PA 141, MCL 285.61 to 285.82a.
(i) The Michigan family farm development act, 1982 PA 220, MCL 285.251 to 285.279.
(j) The natural resources and environmental protection act, 1994 PA 451, MCL 324.101 to 324.90106.
(k) 1982 PA 459, MCL 325.851 to 325.858.
(l) 1970 PA 90, MCL 442.311 to 442.315.
(m) 1971 PA 227, MCL 445.111 to 445.117.
(n) The retail installment sales act, 1966 PA 224, MCL 445.851 to 445.873.
(o) The Michigan consumer protection act, 1976 PA 331, MCL 445.901 to 445.922.
(p) The home improvement finance act, 1965 PA 332, MCL 445.1101 to 445.1431.
(q) 1941 PA 238, MCL 566.1.
(r) The garage keeper's lien act, 1915 PA 312, MCL 570.301 to 570.309.
(s) 1939 PA 3, MCL 460.1 to 460.10cc.
(t) 1981 PA 155, MCL 445.611 to 445.620c.
(u) The special tools lien act.
(3) In case of conflict between this article and a rule of law, statute, or regulation described in subsection (2), the rule of law, statute, or regulation controls. Failure to comply with a statute or regulation described in subsection (2) has only the effect the statute or regulation specifies.
(4) This article does not validate any rate, charge, agreement, or practice that violates a rule of law, statute, or regulation described in subsection (2), or extend the application of the rule of law, statute, or regulation to a transaction not otherwise subject to it.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 2000, Act 348, Eff. July 1, 2001 ;-- Am. 2002, Act 18, Imd. Eff. Mar. 1, 2002 ;-- Am. 2002, Act 480, Imd. Eff. June 27, 2002
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) › 174-1962-9-2-1. - Subpart 1. Effectiveness and Attachment (440.9201...440.9206) › Section 440.9202 - Title to Collateral Immaterial.

440.9202 Title to collateral immaterial.
Sec. 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 with regard to rights and obligations apply whether title to collateral is in the secured party or the debtor.
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) › 174-1962-9-2 - Part 2 Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement (440.9201...440.9210) › 174-1962-9-2-1. - Subpart 1. Effectiveness and Attachment (440.9201...440.9206) › Section 440.9204 - After-Acquired Property; Future Advances.

440.9204 After-acquired property; future advances.
Sec. 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 interest does not attach under a term constituting an after-acquired property clause to either of the following:
(a) Consumer goods, other than an accession when given as additional security, unless the debtor acquires rights in them within 10 days after the secured party gives value.
(b) A commercial tort claim.
(3) A security agreement may provide that collateral secures, or that accounts, chattel paper, payment intangibles, or promissory notes are sold in connection with, future advances or other value, whether or not the advances or value are given pursuant to commitment.
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) › 174-1962-9-2 - Part 2 Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement (440.9201...440.9210) › 174-1962-9-2-1. - Subpart 1. Effectiveness and Attachment (440.9201...440.9206) › Section 440.9205 - Use or Disposition of Collateral Permissible.

440.9205 Use or disposition of collateral permissible.
Sec. 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 ability to do 1 or more of the following:
(i) Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods.
(ii) Collect, compromise, enforce, or otherwise deal with collateral.
(iii) Accept the return of collateral or make repossessions.
(iv) Use, commingle, or dispose of proceeds.
(b) The secured party fails to require the debtor to account for proceeds or replace collateral.
(2) This section does not relax the requirements of possession if attachment, perfection, or enforcement or a security interest depends upon possession of the collateral by the secured party.
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) › 174-1962-9-2 - Part 2 Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement (440.9201...440.9210) › 174-1962-9-2-1. - Subpart 1. Effectiveness and Attachment (440.9201...440.9206) › Section 440.9206 - Security Interest Arising in Purchase or Delivery of Financial Asset.

440.9206 Security interest arising in purchase or delivery of financial asset.
Sec. 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 securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities intermediary at the time of the purchase, and the securities intermediary credits the financial asset to the buyer's securities account before the buyer pays the securities intermediary.
(2) The security interest described in subsection (1) secures the person's obligation to pay for the financial asset.
(3) A security interest in favor of a person that delivers a certificated security or other financial asset represented by a writing attaches to the security or other financial asset if both of the following are met:
(a) The security or other financial asset in the ordinary course of business is transferred by delivery with any necessary indorsement or assignment, and is delivered under an agreement between persons in the business of dealing with the securities or financial assets.
(b) The agreement calls for delivery against payment.
(4) The security interest described in subsection (3) secures the obligation to make payment for the delivery.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1964, Act 250, Eff. Aug. 28, 1964 ;-- Am. 2000, Act 348, Eff. July 1, 2001