Mich. Comp. Laws § 554.1011
Short title.
This act shall be known and may be cited as the "receivership act".
Michigan Compiled Laws — RECEIVERSHIP ACT (Act 16 of 2018)
Michigan · statute · 16 of 2018, Mich. Comp. Laws · 29 active provisions
Provisions
Mich. Comp. Laws § 554.1012
Definitions.
As used in this act: (a) "Affiliate" means all of the following: (i) With respect to an individual, any of the following: (A) A companion of the individual. (B) A lineal ancestor or descendant, whether by blood or adoption, of either of the following: (I) The individual. (II) A companion of the individual. (C) A compan…
Mich. Comp. Laws § 554.1013
Court order; issuance; notice and hearing; circumstances.
(1) Except as otherwise provided in subsection (2), the court may issue an order under this act only after notice and opportunity for a hearing appropriate in the circumstances. (2) The court may issue an order under this act under the following circumstances: (a) Without prior notice if cause exists to require issuanc…
Mich. Comp. Laws § 554.1014
Applicability of act; scope; limitation.
(1) Except as otherwise provided in subsection (2) or (3), this act applies to a receivership for an interest in any of the following commercial property: (a) Real property, fixtures, and any personal property related to or used in operating the real property. (b) Personal property. (2) This act does not apply to a rec…
Mich. Comp. Laws § 554.1015
Selection, appointment, removal, and compensation of receiver; establishment by court rule; jurisdiction.
(1) Except as provided in this act, the procedure for the selection, appointment, removal, and compensation of a receiver, or a professional engaged under section 15, under this act is as established by the court rules. (2) The court that appoints a receiver under this act has exclusive jurisdiction to direct the recei…
Mich. Comp. Laws § 554.1016
Appointment of receiver; circumstances; appointment without prior notice or hearing; security.
(1) The court may appoint a receiver as follows: (a) Before judgment, to protect a party that demonstrates an apparent right, title, or interest in property that is the subject of the action, under either of the following circumstances: (i) The property or its revenue-producing potential is being subjected to or is in…
Mich. Comp. Laws § 554.1017
Appointment of receiver; objection; requirements; disqualifications.
(1) If a court determines there is good cause to appoint a receiver, the court shall select the receiver in accordance with this section. A receiver selected by the court must have sufficient competence, qualifications, and experience to administer the receivership estate. (2) The party moving for the appointment of a…
Mich. Comp. Laws § 554.1018
Bond; alternative security.
(1) Except as otherwise provided in subsection (2), a receiver shall post with the court a bond that meets all of the following requirements: (a) The bond is conditioned on the faithful discharge of the receiver's duties. (b) The bond has 1 or more sureties approved by the court. (c) The bond is in an amount the court…
Mich. Comp. Laws § 554.1019
Status of receiver as lien creditor.
On appointment of a receiver, the receiver has the status of a lien creditor under both of the following: (a) Article 9 of the uniform commercial code, 1962 PA 174, MCL 440.9101 to 440.9809, as to receivership property that is personal property or fixtures. (b) The recording statutes of this state as to receivership pr…
Mich. Comp. Laws § 554.1020
Acquisition of property after appointment as receiver; security agreement.
Except as otherwise provided by law of this state other than this act, property that a receiver or owner acquires after appointment of the receiver is subject to a security agreement entered into before the appointment to the same extent as if the court had not appointed the receiver.
Mich. Comp. Laws § 554.1021
Receivership property; duties of person upon demand of receiver; failure to turn over property; sanction.
(1) Unless the court orders otherwise, a person shall do both of the following on demand by a receiver, as applicable: (a) If the person owes a debt that is receivership property and is matured or payable on demand or on order, pay the debt to or on the order of the receiver, except to the extent the debt is subject to…
Mich. Comp. Laws § 554.1022
Powers and duties of receiver.
(1) Except as limited by court order or applicable law, a receiver may do all of the following: (a) Collect, control, manage, conserve, and protect receivership property. (b) Operate a business constituting receivership property, including preservation, use, sale, lease, license, exchange, collection, or disposition of…
Mich. Comp. Laws § 554.1023
Duties of owner.
(1) An owner shall do all of the following: (a) Assist and cooperate with the receiver in the administration of the receivership and the discharge of the receiver's duties. (b) Preserve and turn over to the receiver all receivership property in the owner's possession, custody, or control. (c) Identify all records and o…
Mich. Comp. Laws § 554.1024
Stay or injunction.
(1) Except as otherwise provided in subsection (4) or ordered by the court, an order appointing a receiver operates as a stay, applicable to all persons, of an act, action, or proceeding to do any of the following: (a) Obtain possession of, exercise control over, or enforce a judgment against receivership property. (b)…
Mich. Comp. Laws § 554.1025
Engagement of professional; compensation.
(1) With court approval, a receiver may engage an attorney, accountant, appraiser, auctioneer, broker, or other professional to assist the receiver in performing a duty or exercising a power of the receiver. The receiver shall disclose all of the following to the court: (a) The identity and qualifications of the profes…
Mich. Comp. Laws § 554.1026
"Good faith" defined; use or transfer of receivership property not in ordinary course of business.
(1) As used in this section, "good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing. (2) With court approval, a receiver may use receivership property other than in the ordinary course of business. (3) With court approval, and after notice and an opportunity for a heari…
Mich. Comp. Laws § 554.1027
"Timeshare interest" defined; executory contract.
(1) As used in this section, "timeshare interest" means either of the following, as applicable: (a) Unless subdivision (b) applies, an interest having a duration of more than 3 years that grants its holder the right to use and occupy an accommodation, facility, or recreational site, whether improved or not, for a speci…
Mich. Comp. Laws § 554.1028
Defenses and immunities of receiver.
(1) A receiver is entitled to all defenses and immunities provided by law of this state other than this act for an act or omission within the scope of the receiver's appointment. (2) Leave of the appointing court must be obtained before the institution of any action or proceeding against a receiver or a professional en…
Mich. Comp. Laws § 554.1029
Quarterly interim report of receiver.
Except as otherwise ordered by the court for cause, a receiver shall file quarterly interim reports that include all of the following: (a) The activities of the receiver since appointment or a previous report. (b) Receipts and disbursements, including a payment made or proposed to be made to a professional engaged by t…
Mich. Comp. Laws § 554.1030
Notice of order governing appointment; notice to all creditors; claim; distribution of receivership property.
(1) Within 7 days after the receipt by the receiver of the list required under section 13(1)(d), the receiver shall provide all creditors and any other known interested parties with notice and a copy of any order governing its appointment. Notwithstanding the foregoing, the court may delay, limit, or eliminate the noti…
Mich. Comp. Laws § 554.1031
Fees and expenses.
(1) The court may award a receiver from receivership property the reasonable and necessary fees and expenses of performing the duties of the receiver and exercising the powers of the receiver. (2) The court may order 1 or more of the following to pay the reasonable and necessary fees and expenses of the receivership, i…
Mich. Comp. Laws § 554.1032
Removal of receiver; replacement; discharge; termination.
(1) The court may remove a receiver for cause. (2) The court shall replace a receiver that dies, resigns, or is removed. (3) If the court finds that a receiver that resigns or is removed, or the representative of a receiver that is deceased, has accounted fully for and turned over to the successor receiver all receiver…
Mich. Comp. Laws § 554.1033
Final report of receiver; contents; discharge.
(1) On completion of a receiver's duties, the receiver shall file a final report including all of the following: (a) A description of the activities of the receiver in the conduct of the receivership. (b) A list of receivership property at the commencement of the receivership and any receivership property received duri…
Mich. Comp. Laws § 554.1034
Receivership in another state; rights, powers, and duties of ancillary receiver.
(1) The court may appoint a receiver appointed in another state, or that person's nominee, as an ancillary receiver with respect to property located in this state or subject to the jurisdiction of the court for which a receiver could be appointed under this act, if both of the following apply: (a) The person or nominee…
Mich. Comp. Laws § 554.1035
Enforcement by secured party; effect.
A request by a secured party for appointment of a receiver, the appointment of a receiver, or application by a secured party of receivership property or proceeds to the secured obligation does not do any of the following: (a) Make the secured party a mortgagee in possession of the real property. (b) Impose any duty on…
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