Michigan Laws 440.9109 – Scope
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(1) Except as otherwise provided in subsections (3) and (4), this article applies to all of the following:
(a) A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract.
Terms Used In Michigan Laws 440.9109
- Account debtor: means a person obligated on an account, chattel paper, or general intangible. See Michigan Laws 440.9102
- Agricultural lien: means an interest, other than a security interest, in farm products that meets all of the following requirements:
(i) The interest secures payment or performance of an obligation for 1 or more of the following:
(A) Goods or services furnished in connection with a debtor's farming operation. See Michigan Laws 440.9102Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC Chattel paper: means a record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods, or a lease of specific goods and license of software used in the goods. See Michigan Laws 440.9102 Collateral: means the property subject to a security interest or agricultural lien. See Michigan Laws 440.9102 Commercial tort claim: means a claim arising in tort with respect to which of the following applies:
(i) The claimant is an organization. See Michigan Laws 440.9102Consignment: means a transaction, regardless of its form, in which a person delivers goods to a merchant for the purpose of sale and that meets all of the following:
(i) The merchant deals in goods of that kind under a name other than the name of the person making delivery, is not an auctioneer, and is not generally known by its creditors to be substantially engaged in selling the goods of others. See Michigan Laws 440.9102Consumer: means an individual who enters into a transaction primarily for personal, family, or household purposes. See Michigan Laws 440.1201 Contract: A legal written agreement that becomes binding when signed. Deposit account: means a demand, time, savings, passbook, or similar account maintained with a bank. See Michigan Laws 440.9102 Fixtures: means goods that have become so related to particular real property that an interest in them arises under real property law. See Michigan Laws 440.9102 Governmental unit: means a subdivision, agency, department, county, parish, municipality, or other unit of the government of the United States, a state, or a foreign country. See Michigan Laws 440.9102 Health-care-insurance receivable: means an interest in or claim under a policy of insurance which is a right to payment of a monetary obligation for health-care goods or services provided. See Michigan Laws 440.9102 Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC Lien: A claim against real or personal property in satisfaction of a debt. Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period. Payment intangible: means a general intangible under which the account debtor's principal obligation is a monetary obligation. See Michigan Laws 440.9102 Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, public corporation, or any other legal or commercial entity. See Michigan Laws 440.1201 Personal property: All property that is not real property. Proceeds: means , except as used in section 9609(2), 1 or more of the following property:
(i) Whatever is acquired upon the sale, lease, license, exchange, or other disposition of collateral. See Michigan Laws 440.9102Promissory note: means an instrument that evidences a promise to pay a monetary obligation, does not evidence an order to pay, and does not contain an acknowledgment by a bank that the bank has received for deposit a sum of money or funds. See Michigan Laws 440.9102 Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land. Right: includes remedy. See Michigan Laws 440.1201 Security interest: means an interest in personal property or fixtures which secures payment or performance of an obligation. See Michigan Laws 440.1201 State: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See Michigan Laws 440.9102 Statute: A law passed by a legislature. 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. United States: shall be construed to include the district and territories. See Michigan Laws 8.3o
(b) An agricultural lien.
(c) A sale of accounts, chattel paper, payment intangibles, or promissory notes.
(d) A consignment.
(e) A security interest arising under section 2401, 2505, 2711(3), or 2A508(5), as provided in section 9110.
(f) A security interest arising under section 4210 or 5118.
(2) The application of this article to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this article does not apply.
(3) This article does not apply to the extent that 1 or more of the following apply:
(a) A statute, regulation, or treaty of the United States preempts this article.
(b) Another statute of this state expressly governs the creation, perfection, priority, or enforcement of a security interest created by this state or a governmental unit of this state.
(c) A statute of another state, a foreign country, or a governmental unit of another state or foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by that state, country, or governmental unit.
(d) The rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under section 5114.
(4) This article does not apply to any of the following:
(a) A landlord’s lien, other than an agricultural lien.
(b) A lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but section 9333 applies with respect to priority of the lien.
(c) An assignment of a claim for wages, salary, or other compensation of an employee.
(d) A sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose.
(e) An assignment of accounts, chattel paper, payment intangibles, or promissory notes that is for the purpose of collection only.
(f) An assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract.
(g) An assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness.
(h) A transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health-care provider of a health-care-insurance receivable and any subsequent assignment of the right to payment, but section 9315 and 9322 apply with respect to proceeds and priorities in proceeds.
(i) An assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral.
(j) A right of recoupment of set-off, but section 9340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts and section 9404 applies with respect to defenses or claims of an account debtor.
(k) The creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for 1 or more of the following:
(i) Liens on real property in section 9203 and 9308.
(ii) Fixtures in section 9334.
(iii) Fixture filings in sections 9501, 9502, 9512, 9516, and 9519.
(iv) Security agreements covering personal and real property in section 9604.
(l) The creation of or transfer of an interest in or lien on a land contract mortgage governed by section 6 through 11 of 1879 PA 237, MCL 565.356 to 565.361.
(m) A transfer by a governmental unit or governmental subdivision or agency.
(n) An assignment of a claim arising in tort, other than a commercial tort claim, but section 9315 and 9322 apply with respect to proceeds and priorities in proceeds.
(o) An assignment of a deposit account in a consumer transaction, but section 9315 and 9322 apply with respect to proceeds and priorities in proceeds.