Terms Used In Michigan Laws 440.9402

  • Collateral: means the property subject to a security interest or agricultural lien. See Michigan Laws 440.9102
  • Contract: A legal written agreement that becomes binding when signed.
  • Debtor: means 1 of the following:
  (i) A person having an interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor. See Michigan Laws 440.9102
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Secured party: means 1 or more of the following:
  •   (i) A person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding. See Michigan Laws 440.9102
  • Security interest: means an interest in personal property or fixtures which secures payment or performance of an obligation. See Michigan Laws 440.1201
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
  •    The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor’s acts or omissions.