PERFECTION

MCL ch. 440, subtit. Act 174 of 1962, art. 9, pt. 3, subpt. 2.

in effect

MCL 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. 1962, Act 174, Eff. Jan. 1, 1964; Am. 1978, Act 369, Eff. Jan. 1, 1979; Am. 2000, Act 348, Eff. July 1, 2001

MCL 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. 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

MCL 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. 1962, Act 174, Eff. Jan. 1, 1964; Am. 2000, Act 348, Eff. July 1, 2001; Am. 2012, Act 87, Eff. July 1, 2013

MCL 440.9311 Perfection of security interests in property subject to certain statutes, regulations, and treaties.

440.9311. Perfection of security interests in property subject to certain statutes, regulations, and treaties. Sec. 9311. (1) Except as otherwise provided in subsection (4), the filing of a financing statement is not necessary or effective to perfect a security interest in property subject to 1 or more of the following: (a) A statute, regulation, or treaty of the United States whose requirements for a security interest's obtaining priority over the rights of a lien creditor with respect to the property preempt section 9310(1). (b) The following statutes of this state: (i) Chapter II of the Michigan vehicle code, 1949 PA 300, MCL 257.201 to 257.259. (ii) Part 803 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.80301 to 324.80322. (iii) Part 811 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.81101 to 324.81150. (iv) Sections 30 through 30i of the mobile home commission act, 1987 PA 96, MCL 125.2330 to 125.2330i. (c) A statute of another jurisdiction that provides for a security interest to be indicated on a certificate of title as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the property. (2) Compliance with the requirements of a statute, regulation, or treaty described in subsection (1) for obtaining priority over the rights of a lien creditor is equivalent to the filing of a financing statement under this article. Except as otherwise provided in subsection (4) and sections 9313 and 9316(4) and (5) for goods covered by a certificate of title, a security interest in property subject to a statute, regulation, or treaty described in subsection (1) may be perfected only by compliance with those requirements, and a security interest so perfected remains perfected notwithstanding a change in the use or transfer of possession of the collateral. (3) Except as otherwise provided in subsection (4) and section 9316(4) and (5), duration and renewal of perfection of a security interest perfected by compliance with the requirements prescribed by a statute, regulation, or treaty described in subsection (1) are governed by the statute, regulation, or treaty. In other respects, the security interest is subject to this article. (4) During any period in which collateral subject to a statute specified in subsection (1)(b) is inventory held for sale or lease by a person or leased by that person as lessor and that person is in the business of selling goods of that kind, this section does not apply to a security interest in that collateral created by that person. 1962, Act 174, Eff. Jan. 1, 1964; Am. 2000, Act 348, Eff. July 1, 2001; Am. 2001, Act 145, Eff. Jan. 1, 2002; Am. 2005, Act 25, Imd. Eff. May 23, 2005; Am. 2012, Act 88, Eff. July 1, 2013

MCL 440.9312 Perfection of security interests in chattel paper, deposit accounts, documents, goods covered by documents, instruments, investment property, letter-of-credit rights, and money; perfection by permissive filing; temporary perfection without filing or transfer of possession.

440.9312. Perfection of security interests in chattel paper, deposit accounts, documents, goods covered by documents, instruments, investment property, letter-of-credit rights, and money; perfection by permissive filing; temporary perfection without filing or transfer of possession. Sec. 9312. (1) A security interest in chattel paper, negotiable documents, instruments, or investment property may be perfected by filing. (2) Except as otherwise provided in section 9315(3) and (4) for proceeds, a security interest in a deposit account, a letter-of-credit right, or money may be perfected only as follows: (a) A security interest in a deposit account may be perfected only by control under section 9314. (b) Except as otherwise provided in section 9308(4), a security interest in a letter-of-credit right may be perfected only by control under section 9314. (c) A security interest in money may be perfected only by the secured party's taking possession under section 9313. (3) While goods are in the possession of a bailee that has issued a negotiable document covering the goods, a security interest in the goods may be perfected by perfecting a security interest in the document, and a security interest perfected in the document has priority over any security interest that becomes perfected in the goods by another method during that time. (4) While goods are in the possession of a bailee that has issued a nonnegotiable document covering the goods, a security interest in the goods may be perfected by 1 or more of the following: (a) Issuance of a document in the name of the secured party. (b) The bailee's receipt of notification of the secured party's interest. (c) Filing as to the goods. (5) A security interest in certificated securities, negotiable documents, or instruments is perfected without filing or the taking of possession or control for a period of 20 days from the time it attaches to the extent that it arises for new value given under an authenticated security agreement. (6) A perfected security interest in a negotiable document or goods in possession of a bailee, other than one that has issued a negotiable document for the goods, remains perfected for 20 days without filing if the secured party makes available to the debtor the goods or documents representing the goods for the purpose of ultimate sale or exchange, or for the purpose of loading, unloading, storing, shipping, transshipping, manufacturing, processing, or otherwise dealing with them in a manner preliminary to their sale or exchange. (7) A perfected security interest in a certificated security or instrument remains perfected for 20 days without filing if the secured party delivers the security certificate or instrument to the debtor for the purpose of ultimate sale or exchange or for the purpose of presentation, collection, enforcement, renewal, or registration of transfer. (8) After the 20-day period specified in subsection (5), (6), or (7) expires, perfection depends upon compliance with this article. 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. 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; Am. 2012, Act 87, Eff. July 1, 2013

MCL 440.9313 Possession by or delivery to secured party perfecting security interest without filing.

440.9313. Possession by or delivery to secured party perfecting security interest without filing. Sec. 9313. (1) Except as otherwise provided in subsection (2), a secured party may perfect a security interest in tangible negotiable documents, goods, instruments, money, or tangible chattel paper by taking possession of the collateral. A secured party may perfect a security interest in certificated securities by taking delivery of the certificated securities under section 8301. (2) With respect to goods covered by a certificate of title issued by this state, a secured party may perfect a security interest in the goods by taking possession of the goods only in the circumstances described in section 9316(5). (3) With respect to collateral other than certificated securities and goods covered by a document, a secured party takes possession of collateral in the possession of a person other than the debtor, the secured party, or a lessee of the collateral from the debtor in the ordinary course of the debtor's business, when the person in possession authenticates a record acknowledging that it holds possession of the collateral for the secured party's benefit, or the person takes possession of the collateral after having authenticated a record acknowledging that it will hold possession of collateral for the secured party's benefit. (4) If the perfection of a security interest depends upon possession of the collateral by a secured party, perfection occurs no earlier than the time the secured party takes possession and continues only while the secured party retains possession. (5) A security interest in a certificated security in registered form is perfected by delivery when delivery of the certificated security occurs under section 8301 and remains perfected by delivery until the debtor obtains possession of the security certificate. (6) A person in possession of collateral is not required to acknowledge that it holds possession for a secured party's benefit. (7) If a person acknowledges that it holds possession for the secured party's benefit, the acknowledgment is effective under subsection (3) or section 8301(1), even if the acknowledgment violates the rights of a debtor, and unless the person otherwise agrees or law other than this article otherwise provides, the person does not owe any duty to the secured party and is not required to confirm the acknowledgment to another person. (8) A secured party having possession of collateral does not relinquish possession by delivering the collateral to a person other than the debtor or a lessee of the collateral from the debtor in the ordinary course of the debtor's business if the person was instructed before the delivery or is instructed contemporaneously with the delivery to hold possession of the collateral for the secured party's benefit, or to redeliver the collateral to the secured party. (9) A secured party does not relinquish possession, even if a delivery under subsection (8) violates the rights of a debtor. A person to which collateral is delivered under subsection (8) does not owe any duty to the secured party and is not required to confirm the delivery to another person unless the person otherwise agrees or law other than this article otherwise provides. 1962, Act 174, Eff. Jan. 1, 1964; Am. 1978, Act 369, Eff. Jan. 1, 1979; Am. 1980, Act 53, Imd. Eff. Mar. 27, 1980; Am. 2000, Act 348, Eff. July 1, 2001; Am. 2012, Act 87, Eff. July 1, 2013

MCL 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. 1962, Act 174, Eff. Jan. 1, 1964; Am. 2000, Act 348, Eff. July 1, 2001; Am. 2012, Act 87, Eff. July 1, 2013

MCL 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. 1962, Act 174, Eff. Jan. 1, 1964; Am. 2000, Act 348, Eff. July 1, 2001

MCL 440.9316 Continued perfection of security interest following change in governing law.

440.9316. Continued perfection of security interest following change in governing law. Sec. 9316. (1) A security interest perfected pursuant to the law of the jurisdiction designated in section 9301(a) or 9305(3) remains perfected until the earliest of the following: (a) The time perfection would have ceased under the law of that jurisdiction. (b) The expiration of 4 months after a change of the debtor's location to another jurisdiction. (c) The expiration of 1 year after a transfer of collateral to a person that thereby becomes a debtor and is located in another jurisdiction. (2) If a security interest described in subsection (1) becomes perfected under the law of the other jurisdiction before the earliest time or event described in that subsection, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earliest time or event, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value. (3) A possessory security interest in collateral, other than goods covered by a certificate of title and as-extracted collateral consisting of goods, remains continuously perfected if all of the following are met: (a) The collateral is located in 1 jurisdiction and subject to a security interest perfected under the law of that jurisdiction. (b) Thereafter, the collateral is brought into another jurisdiction. (c) Upon entry of the collateral into the other jurisdiction, the security interest is perfected under the law of the other jurisdiction. (4) Except as otherwise provided in subsection (5), a security interest in goods covered by a certificate of title that is perfected by any method under the law of another jurisdiction when the goods become covered by a certificate of title from this state remains perfected until the security interest would have become unperfected under the law of the other jurisdiction had the goods not become so covered. (5) A security interest described in subsection (4) becomes unperfected as against a purchaser of the goods for value and is deemed never to have been perfected as against a purchaser of the goods for value if the applicable requirements for perfection under section 9311(2) or 9313 are not satisfied before the earlier of the following: (a) The time the security interest would have become unperfected under the law of the other jurisdiction had the goods not become covered by a certificate of title from this state. (b) The expiration of 4 months after the goods had become so covered. (6) A security interest in deposit accounts, letter-of-credit rights, or investment property that is perfected under the law of the bank's jurisdiction, the issuer's jurisdiction, a nominated person's jurisdiction, the securities intermediary's jurisdiction, or the commodity intermediary's jurisdiction, as applicable, remains perfected until the earlier of the following: (a) The time the security interest would have become unperfected under the law of that jurisdiction. (b) The expiration of 4 months after a change of the applicable jurisdiction to another jurisdiction. (7) If a security interest described in subsection (6) becomes perfected under the law of the other jurisdiction before the earlier of the time or the end of the period described in that subsection, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earlier of that time or the end of that period, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value. (8) The following rules apply to collateral to which a security interest attaches within 4 months after the debtor changes its location to another jurisdiction: (a) A financing statement filed before the change pursuant to the law of the jurisdiction designated in section 9301(a) or 9305(3) is effective to perfect a security interest in the collateral if the financing statement would have been effective to perfect a security interest in the collateral had the debtor not changed its location. (b) If a security interest perfected by a financing statement that is effective under subdivision (a) becomes perfected under the law of the other jurisdiction before the earlier of the time the financing statement would have become ineffective under the law of the jurisdiction designated in section 9301(a) or 9305(3) or the expiration of the 4-month period, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earlier time or event, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value. (9) If a financing statement naming an original debtor is filed pursuant to the law of the jurisdiction designated in section 9301(a) or 9305(3) and the new debtor is located in another jurisdiction, the following rules apply: (a) The financing statement is effective to perfect a security interest in collateral acquired by the new debtor before, and within 4 months after, the new debtor becomes bound under section 9203(4), if the financing statement would have been effective to perfect a security interest in the collateral had the collateral been acquired by the original debtor. (b) A security interest perfected by the financing statement and which becomes perfected under the law of the other jurisdiction before the earlier of the time the financing statement would have become ineffective under the law of the jurisdiction designated in section 9301(a) or 9305(3) or the expiration of the 4-month period remains perfected thereafter. A security interest that is perfected by the financing statement but which does not become perfected under the law of the other jurisdiction before the earlier time or event becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value. 1962, Act 174, Eff. Jan. 1, 1964; Am. 2000, Act 348, Eff. July 1, 2001; Am. 2012, Act 88, Eff. July 1, 2013

Source: Michigan Legislature (legislature.mi.gov)URL: https://legislature.mi.gov/documents/mcl/Chapter%20440.xmlFetched: 10/20/2026