Michigan Laws 440.1309 – Accelerating payment or performance or requiring collateral or additional collateral
Current as of: 2023 | Check for updates
|
Other versions
Terms Used In Michigan Laws 440.1309
- Good faith: except as otherwise provided in article 5, means honesty in fact and the observance of reasonable commercial standards of fair dealing. See Michigan Laws 440.1201
- Term: means a portion of an agreement that relates to a particular matter. See Michigan Laws 440.1201
A term providing that 1 party or that party’s successor in interest may accelerate payment or performance or require collateral or additional collateral “at will” or when the party “deems itself insecure”, or words of similar import, means that the party has power to do so only if that party in good faith believes that the prospect of payment or performance is impaired. The burden of establishing lack of good faith is on the party against which the power has been exercised.