Mich. Comp. Laws § 570.541
Short title.
This act shall be known and may be cited as the "special tools lien act".
Michigan Compiled Laws — SPECIAL TOOLS LIEN ACT (Act 481 of 2002)
Michigan · statute · 481 of 2002, Mich. Comp. Laws · 17 active provisions
Provisions
Mich. Comp. Laws § 570.542
Definitions.
For purposes of this act: (a) "Customer" means a person who causes a special tool builder to design, develop, manufacture, assemble for sale, or otherwise make a special tool for use in the design, development, manufacture, assembly, or fabrication of metal parts, or a person who causes an end user to use a special too…
Mich. Comp. Laws § 570.543
Special tools; unclaimed possession; transfer of rights from customer to end user; destruction.
Unless otherwise agreed in writing, if a customer does not claim possession of a special tool from the end user within 3 years from the last use with that end user of the special tool, all rights, title, and interest in the special tool may, at the option of the end user, be transferred by operation of law to the end u…
Mich. Comp. Laws § 570.545
Transfer of rights to end user; notice; waiting period.
After the expiration of the 3-year period set forth in section 3, if an end user chooses to have all rights, title, and interest in a special tool transferred to the end user by operation of law, the end user shall send written notice by registered mail, return receipt requested, to an address designated in writing by…
Mich. Comp. Laws § 570.547
Return receipt of notice; possession unclaimed; transfer.
If a customer does not claim possession of the special tool within 120 days after the date the end user receives the return receipt of the notice sent under section 5, or does not make other arrangements with the end user for storage of the special tool within the time limit set forth in this section, all rights, title…
Mich. Comp. Laws § 570.549
Retroactive application of waiting period.
The 3-year waiting period provided in section 3 shall apply retroactively in the case of a special tool in the possession of an end user on the effective date of this act.
Mich. Comp. Laws § 570.551
Applicability and construction of MCL 570.543, 570.545, 570.547, and 570.549.
Sections 3, 5, 7, and 9 shall not apply if an end user retains title to and possession of a special tool. Sections 3, 5, 7, and 9 shall not be construed to grant a customer rights, title, or interest in a special tool.
Mich. Comp. Laws § 570.553
Lien; possession.
An end user has a lien, dependent on possession, on any special tool in the end user's possession belonging to a customer for the amount due the end user from the customer for metal fabrication work performed with the special tool. An end user may retain possession of the special tool until the amount due is paid.
Mich. Comp. Laws § 570.555
Enforcement of lien; notice.
Before enforcing a lien granted to an end user under section 13, notice in writing shall be given to the customer, delivered personally or sent by registered mail to the last known address of the customer. The notice shall state that a lien is claimed for the amount due for metal fabrication work or for making or impro…
Mich. Comp. Laws § 570.557
Sale of special tool at public auction; conditions.
If the end user has not been paid the amount due within 90 days after the notice has been received by the customer provided in section 15, the end user may sell the special tool at a public auction if both of the following occur: (a) The special tool is still in the end user's possession. (b) The end user complies with…
Mich. Comp. Laws § 570.559
Sale of special tool at public auction; notice; information; notice nondeliverable; dispute.
(1) Before an end user may sell the special tool, the end user shall notify, by registered mail, return receipt requested, the customer and any person whose security interest is perfected by filing. The notice shall include the following information: (a) The end user's intention to sell the special tool 60 days after t…
Mich. Comp. Laws § 570.561
Payment of proceeds to prior lienholder; payment of amount to end user possessing lien or to customer.
(1) If the sale is for a sum greater than the amount of the lien, the proceeds shall first be paid to the prior lienholder who has a perfected lien in an amount sufficient to extinguish that interest. Any excess shall next be paid to the end user who possesses a lien under this act in an amount sufficient to extinguish…
Mich. Comp. Laws § 570.563
Information recorded by special tool builder; filing financial statement; constructive notice of lien on special tool; attachment; duration of lien; priority.
(1) A special tool builder shall permanently record on every special tool that the special tool builder fabricates, repairs, or modifies the special tool builder's name, street address, city, and state. (2) A special tool builder shall file a financing statement in accordance with the requirements of section 9502 of th…
Mich. Comp. Laws § 570.565
Enforcement of lien; notice.
To enforce a lien that attaches under section 23, the special tool builder shall give notice of the lien in writing to the customer and the end user. The notice shall be given by hand delivery or certified mail, return receipt requested, to the last known address of the customer and to the last known address of the end…
Mich. Comp. Laws § 570.567
Rights of possession.
Subject to section 29, if the special tool builder has not been paid the amount claimed in the notice required under section 25 within 90 days after the notice required under section 25 has been received by the customer and the end user, the special tool builder has a right to possession of the special tool and may enf…
Mich. Comp. Laws § 570.569
Sale of special tool with lien asserted.
(1) Before a special tool builder may sell a special tool for which a lien is claimed and for which the required notice has been sent under section 25, the special tool builder shall notify the customer, the end user, and all other persons that have a perfected security interest in the special tool under part 5 of arti…
Mich. Comp. Laws § 570.571
Sale of special tool; use of excess proceeds; prohibition.
(1) If the proceeds of the sale are greater than the amount of the lien, the proceeds shall first be paid to the special tool builder in the amount necessary to satisfy the lien. All proceeds in excess of the lien shall be paid to the customer. (2) A sale shall not be made or possession shall not be obtained under sect…