| Perfection
|| Possession and Sale || New Title
and Plates || Other Issues
|| Kelley Blue Book | |
|
| LAWDOG™ Michigan Repossession |
|
|
|
|
| Security Interest An
application for a certificate of title that indicates the existence of a security interest
in vehicle or accessory, if requested by security interest holder, must be accompanied by
unsigned copy of security agreement. The request may be made of seller on an annual basis.
The secretary of state indicates on copy the date and place of filing of application, and
returns copy to person submitting application, who must forward it to holder of security
interest named in application. If seller does not prepare the credit information, contract
note, and mortgage, and holder, finance company, credit union, or banking institution
requires installment seller to record lien on title, holder, finance company, credit
union, or banking institution must pay seller a service fee of not more than $10.00. The
service fee may not be charged to buyer in addition to finance charges. Notation On Check The holder, finance company,
credit union, or banking institution must issue its check or bank draft for principal
amount financed, payable jointly to buyer and seller, and the following must appear on
back of check or bank:
"Under Michigan law, the seller must record a first lien in favor of (name of
lender) on the vehicle with vehicle identification number (VIN Here) and title the vehicle
only in the name(s) shown on the reverse side." On the front of sales check or draft,
holder, finance company, credit union, or banking institution must name the prospective
owners. Failure to comply with requirements frees seller from any obligation to record
lien or from any liability that may arise as a result of failure to record lien. A service
fee may not be charged to buyer. See 949 PA 300, entitled
"Michigan vehicle code," section 217, (MCL 257.217), section 217 as amended |
|
| Various Michigan Code Sections AdmnCode from Governor John Engler's Office |
|
|
|
| Collection Agency and Repossession Rules available from Consumer and Industry Services |
| Possession After Default Without Breach of
Peace Unless otherwise agreed, secured party has, on default, right
to take possession of the collateral. In taking possession a secured party may proceed
without judicial process, only if this can be done without breach of the peace. If not, a
legal action may proceed. Michigan UCC MCL 440-9503 |
| Right to Redeem At any time
before secured party has disposed of collateral or entered into a contract for disposition
under section 440-9504 or before discharge under section 440-9505, debtor or any other
secured party may, unless otherwise agreed in writing after default, redeem the collateral
by tendering fulfillment of all obligations secured by collateral, expenses reasonably
incurred by secured party in retaking, holding and preparing collateral for disposition,
arranging for sale, and to extent provided in agreement and not prohibited by law,
reasonable attorneys' fees and legal expenses. Michigan UCC MCL 440-9506 |
| Compulsory Sale Under the
Uniform Commercial code, where debtor has paid 60% of the cash price in case of a purchase
money security interest in consumer goods, or 60% of the loan in case of another security
interest in consumer goods, secured party who has taken possession of vehicle must sell
vehicle at either public or private proceedings and must give reasonable notice of time
and place of any public sale or of time after which any private sale is to be made, unless
debtor has signed, after default, a statement renouncing or modifying these rights. 9-506 |
| Acceptance and Satisfaction
Where debtor has paid less than 60% of the cash price of cosumer loan, secured party in
possession may, after default, propose to retain the collateral in satisfaction of the
obligation. Written notice of proposal must be sent to debtor. If debtor or other person
entitled to receive notice objects in writing within twenty one days after notice sent,
secured party must dispose of the vehicle by sale under Section 440-9504 of the Uniform
Commercial Code. Michigan UCC MCL 440-9505 |
|
|
|
| "Certification
of Repossession Form and Instructions" from Secretary of State (PDF format) |
| Give date of notice and type of notice, whether personal service,
first-class mail, certified mail, etc. The Certificate of Title in name of the prior owner
should be submitted with application. If the Certificate of Title is not available, the
reason should be given in the space provided. |
|
|
|
|
|
|
|
| Copyright © 1996-2001 by LAWDOG.COM
Publishing, Inc. |
|
|
|
