LAW GOVERNING PERFECTION AND PRIORITY

MCL ch. 440, subtit. Act 174 of 1962, art. 9, pt. 3, subpt. 1.

in effect

MCL 440.9301 Law governing perfection and priority of security interests.

440.9301. Law governing perfection and priority of security interests. Sec. 9301. Except as otherwise provided in sections 9303 through 9306, the following rules determine the law governing perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral: (a) Except as otherwise provided in this section, while a debtor is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral. (b) While collateral is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a possessory security interest in that collateral. (c) Except as otherwise provided in subdivision (d), while tangible negotiable documents, goods, instruments, money, or tangible chattel paper is located in a jurisdiction, the local law of that jurisdiction governs perfection of a security interest in the goods by filing a fixture filing, perfection of a security interest in timber to be cut, and the effect of perfection or nonperfection and the priority of a nonpossessory security interest in the collateral. (d) The local law of the jurisdiction in which the wellhead or minehead is located governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in as-extracted collateral. 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. 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 440.9302 Law governing perfection and priority of agricultural liens.

440.9302. Law governing perfection and priority of agricultural liens. Sec. 9302. While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of an agricultural lien on the farm products. 1962, Act 174, Eff. Jan. 1, 1964; Am. 1964, Act 235, Eff. Aug. 28, 1964; Am. 1976, Act 27, Imd. Eff. Mar. 4, 1976; Am. 1978, Act 369, Eff. Jan. 1, 1979; Am. 1978, Act 607, Eff. Jan. 6, 1979; Am. 1987, Act 16, Imd. Eff. Apr. 24, 1987; Am. 1996, Act 72, Imd. Eff. Feb. 26, 1996; Am. 1998, Act 278, Imd. Eff. July 27, 1998; Am. 2000, Act 348, Eff. July 1, 2001

MCL 440.9303 Law governing perfection and priority of security interests in goods covered by certificate of title.

440.9303. Law governing perfection and priority of security interests in goods covered by certificate of title. Sec. 9303. (1) This section applies to goods covered by a certificate of title, even if there is no other relationship between the jurisdiction under whose certificate of title the goods are covered and the goods or the debtor. (2) Goods become covered by a certificate of title when a valid application for the certificate of title and the applicable fee are delivered to the appropriate authority. Goods cease to be covered by a certificate of title at the earlier of the time the certificate of title ceases to be effective under the law of the issuing jurisdiction or the time the goods become covered subsequently by a certificate of title issued by another jurisdiction. (3) The local law of the jurisdiction under whose certificate of title the goods are covered governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in goods covered by a certificate of title from the time the goods become covered by the certificate of title until the goods cease to be covered by the certificate of title. 1962, Act 174, Eff. Jan. 1, 1964; Am. 1998, Act 278, Imd. Eff. July 27, 1998; Am. 2000, Act 348, Eff. July 1, 2001

MCL 440.9304 Law governing perfection and priority of security interests in deposit accounts.

440.9304. Law governing perfection and priority of security interests in deposit accounts. Sec. 9304. (1) The local law of a bank's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit account maintained with that bank. (2) The following rules determine a bank's jurisdiction for purposes of this part: (a) If an agreement between the bank and the debtor governing the deposit account expressly provides that a particular jurisdiction is the bank's jurisdiction for the purpose of this part, this article, or this act, that jurisdiction is the bank's jurisdiction. (b) If subdivision (a) does not apply and an agreement between the bank and its customer governing the deposit account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the bank's jurisdiction. (c) If neither subdivision (a) nor (b) applies and an agreement between the bank and its customer governing the deposit account expressly provides that the deposit account is maintained at an office in a particular jurisdiction, that jurisdiction is the bank's jurisdiction. (d) If none of the preceding subdivisions apply, the bank's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the customer's account is located. (e) If none of the preceding subdivisions apply, the bank's jurisdiction is the jurisdiction in which the chief executive office of the bank is located. 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. 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

MCL 440.9305 Law governing perfection and priority of security interests in investment property.

440.9305. Law governing perfection and priority of security interests in investment property. Sec. 9305. (1) Except as otherwise provided in subsection (3), the following rules apply: (a) While a security certificate is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in the certificated security represented thereby. (b) The local law of the issuer's jurisdiction as specified in section 8110(4) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in an uncertificated security. (c) The local law of the securities intermediary's jurisdiction as specified in section 8110(5) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a security entitlement or securities account. (d) The local law of the commodity intermediary's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a commodity contract or commodity account. (2) The following rules determine a commodity intermediary's jurisdiction for purposes of this part: (a) If an agreement between the commodity intermediary and commodity customer governing the commodity account expressly provides that a particular jurisdiction is the commodity intermediary's jurisdiction for purposes of this part, this article, or this act, that jurisdiction is the commodity intermediary's jurisdiction. (b) If subdivision (a) does not apply and an agreement between the commodity intermediary and commodity customer governing the commodity account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the commodity intermediary's jurisdiction. (c) If neither subdivision (a) nor (b) applies and an agreement between the commodity intermediary and commodity customer governing the commodity account expressly provides that the commodity account is maintained at an office in a particular jurisdiction, that jurisdiction is the commodity intermediary's jurisdiction. (d) If none of the preceding subdivisions apply, the commodity intermediary's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the commodity customer's account is located. (e) If none of the preceding subdivisions apply, the commodity intermediary's jurisdiction is the jurisdiction in which the chief executive office of the commodity intermediary is located. (3) The local law of the jurisdiction in which the debtor is located governs perfection of a security interest in investment property by filing, automatic perfection of a security interest in investment property created by a broker or securities intermediary, and automatic perfection of a security interest in a commodity contract or commodity account created by a commodity intermediary. 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. 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

MCL 440.9306 Law governing perfection and priority of security interests in letter-of-credit rights.

440.9306. Law governing perfection and priority of security interests in letter-of-credit rights. Sec. 9306. (1) Subject to subsection (3), the local law of the issuer's jurisdiction or a nominated person's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a letter-of-credit right if the issuer's jurisdiction or nominated person's jurisdiction is a state. (2) For purposes of this part, an issuer's jurisdiction or nominated person's jurisdiction is the jurisdiction whose law governs the liability of the issuer or nominated person with respect to the letter-of-credit right as provided in section 5116. (3) This section does not apply to a security interest that is perfected only under section 9308(4). 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. 2000, Act 348, Eff. July 1, 2001

MCL 440.9307 "Place of business" defined; location of debtor.

440.9307. "Place of business" defined; location of debtor. Sec. 9307. (1) As used in this section, "place of business" means a place where a debtor conducts its affairs. (2) Except as otherwise provided in this section, the following rules determine a debtor's location: (a) A debtor who is an individual is located at the individual's principal residence. (b) A debtor that is an organization and has only 1 place of business is located at its place of business. (c) A debtor that is an organization and has more than 1 place of business is located at its chief executive office. (3) Subsection (2) applies only if a debtor's residence, place of business, or chief executive office, as applicable, is located in a jurisdiction whose law generally requires information concerning the existence of a nonpossessory security interest to be made generally available in a filing, recording, or registration system as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the collateral. If subsection (2) does not apply, the debtor is located in the District of Columbia. (4) A person that ceases to exist, have a residence, or have a place of business continues to be located in the jurisdiction specified by subsections (2) and (3). (5) A registered organization that is organized under the law of a state is located in that state. (6) Except as otherwise provided in subsection (9), a registered organization that is organized under the law of the United States and a branch or agency of a bank that is not organized under the law of the United States or a state are located in 1 of the following: (a) In the state that the law of the United States designates, if the law designates a state of location. (b) In the state that the registered organization, branch, or agency designates, if the law of the United States authorizes the registered organization, branch, or agency to designate its state of location, including by designating its main office, home office, or other comparable office. (c) In the District of Columbia, if neither subdivision (a) nor (b) applies. (7) A registered organization continues to be located in the jurisdiction specified by subsection (5) or (6) notwithstanding the occurrence of 1 of the following: (a) The suspension, revocation, forfeiture, or lapse of the registered organization's status as such in its jurisdiction of organization. (b) The dissolution, winding up, or cancellation of the existence of the registered organization. (8) The United States is located in the District of Columbia. (9) A branch or agency of a bank that is not organized under the law of the United States or a state is located in the state in which the branch or agency is licensed, if all branches and agencies of the bank are licensed in only 1 state. (10) A foreign air carrier is located at the designated office of the agent upon which service of process may be made on behalf of the carrier under section 46103 of title 49 of the United States Code, 49 USC 46103. (11) This section applies only for purposes of this part. 1962, Act 174, Eff. Jan. 1, 1964; Am. 1978, Act 369, Eff. Jan. 1, 1979; Am. 1984, Act 170, Eff. Apr. 1, 1985; Am. 1985, Act 199, Eff. Jan. 1, 1986; 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