Mich. Comp. Laws § 554.1051
Short title.
This act may be cited as the "Michigan uniform assignment of rents act".
Michigan Compiled Laws — MICHIGAN UNIFORM ASSIGNMENT OF RENTS ACT (Act 115 of 2022)
Michigan · statute · 115 of 2022, Mich. Comp. Laws · 19 active provisions
Mich. Comp. Laws § 554.1052
Definitions.
As used in this act: (a) "Assignee" means a person entitled to enforce an assignment of rents. Assignee includes the purchaser at a foreclosure sale by operation of law. (b) "Assignment of rents" means a transfer of an interest in rents in connection with an obligation secured by real property located in this state and…
Mich. Comp. Laws § 554.1053
Assignment; notification; method; proper address rules.
(1) Except as otherwise provided in subsections (3) and (4), a person gives a notification or a copy of a notification under this act by doing either of the following: (a) Depositing it with the United States Postal Service or with a commercially reasonable delivery service, properly addressed to the intended recipient…
Mich. Comp. Laws § 554.1054
Assignment of rents; enforceable security interest; discharge; foreclosure; applicability.
(1) An assignment of rents is created by an assignment in either an enforceable security instrument that grants a security interest in rents or a document that grants a security interest in rents which is signed in connection with an enforceable security instrument as to any real property described in the document crea…
Mich. Comp. Laws § 554.1055
Recording with register of deeds; perfected security interest; priority.
(1) A document creating an assignment of rents may be submitted for recording to the register of deeds in the same manner as any other document evidencing a conveyance of an interest in real property. (2) Upon recording, the security interest in rents created by an assignment of rents is fully perfected, even if a prov…
Mich. Comp. Laws § 554.1056
Assignment enforcement methods.
(1) An assignee may enforce an assignment of rents using 1 or more of the methods specified in sections 7, 8, and 9 or any other method sufficient to enforce the assignment under law of this state other than this act. (2) From the first date of enforcement, the assignee or, in the case of enforcement by appointment of…
Mich. Comp. Laws § 554.1057
Appointment of receiver; petition; priority of receivers.
(1) An assignee is entitled to the appointment of a receiver for the real property subject to the assignment of rents if either of the following applies: (a) The assignor is in default and any of the following apply: (i) The assignor has agreed in a signed document to the appointment of a receiver in the event of the a…
Mich. Comp. Laws § 554.1058
Demand notice to assignor for collection of rents; notification requirements.
(1) Upon the assignor's default, or as otherwise agreed by the assignor, the assignee may give the assignor a notice demanding that the assignor pay over the proceeds of any rents that the assignee is entitled to collect under section 6. The assignee shall record the notice in the office of the register of deeds in the…
Mich. Comp. Laws § 554.1059
Demand notice to tenant for payment of rents; notification requirements.
(1) Upon the assignor's default, or as otherwise agreed by the assignor, the assignee may give to a tenant of the real property a notification demanding that the tenant pay to the assignee all unpaid accrued rents and all unaccrued rents as they accrue. The assignee shall give a copy of the notification to the assignor…
Mich. Comp. Laws § 554.1060
Notification to pay rents to person other than landlord; form.
No particular phrasing is required for the notification specified in section 9. However, the following form of notification, when properly completed, is sufficient to satisfy the requirements of section 9: NOTIFICATION TO PAY RENTS TO PERSON OTHER THAN LANDLORD Your landlord, ______________, owes a debt to ____________…
Mich. Comp. Laws § 554.1061
Effect of enforcement of assignments of rent.
The enforcement of an assignment of rents by 1 or more of the methods identified in sections 7, 8, and 9, the application of proceeds by the assignee under section 12 after enforcement, the payment of expenses under section 13, or an action under section 14(4) does not do any of the following: (a) Make the assignee a m…
Mich. Comp. Laws § 554.1062
Collection of rent proceeds; use of funds.
Unless otherwise agreed, an assignee that collects rents under this act or collects upon a judgment in an action under section 14(4) shall apply the sums collected in the following order: (a) To the assignee's reasonable expenses of enforcing its assignment of rents, including, to the extent provided for by agreement a…
Mich. Comp. Laws § 554.1063
Exception for use of collection of rents; protection of rights.
(1) Unless otherwise agreed by the assignee, and subject to subsection (3), an assignee that collects rents following enforcement under section 8 or 9 need not apply them to the payment of expenses of protecting or maintaining the real property subject to the assignment. (2) Unless a tenant has made an enforceable agre…
Mich. Comp. Laws § 554.1064
"Good faith" defined; collection by assignor; remedies; priority.
(1) In this section, "good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing. (2) If an assignor collects rents that the assignee is entitled to collect under this act, both of the following apply: (a) The assignor shall turn over the proceeds to the assignee, less any a…
Mich. Comp. Laws § 554.1065
Perfection of security interests; priority rules in article 9.
(1) As used in this section: (a) "Article 9" means article 9 of the uniform commercial code, 1962 PA 174, MCL 440.9101 to 440.9809, or, to the extent applicable to any particular issue, article 9 of the uniform commercial code as adopted by the state whose laws govern that issue under the choice-of-laws rules contained…
Mich. Comp. Laws § 554.1066
Priority subject to subordination.
This act does not preclude subordination by agreement as to rents or proceeds.
Mich. Comp. Laws § 554.1067
Promotion of uniformity.
In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
Mich. Comp. Laws § 554.1068
Electronic signatures.
This act modifies, limits, or supersedes the electronic signatures in global and national commerce act, 15 USC 7001 to 7031, but does not modify, limit, or supersede 15 USC 7001(c), or authorize electronic delivery of any of the notices described in 15 USC 7003(b).
Mich. Comp. Laws § 554.1069
Applicability of act.
(1) Except as otherwise provided in this section, this act governs the enforcement of an assignment of rents and the perfection and priority of a security interest in rents, even if the document creating the assignment was signed and delivered before the effective date of this act. (2) This act does not affect an actio…