Michigan Compiled Laws

Mich. Comp. Laws § 438.101 (2026)

Interest on due and unpaid interest; rate.

✓ current as of July 2026
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INTEREST ON DUE AND UNPAID INTEREST


Act 11 of 1869


438.101 Interest on due and unpaid interest; rate.

Sec. 1.

    That when any installment of interest upon any note, bond, mortgage or other written contract shall have become due and the same shall remain unpaid, interest may be computed and collected on any such installment so due and unpaid, from the time at which it became due at the same rate as specified in any such note bond, mortgage or other written contract, not exceeding 10 per cent and if no rate of interest be specified in such instrument, then at the rate of 7 per centum per annum.

History: 1869, Act 11, Eff. July 5, 1869 ;-- CL 1871, 1637 ;-- How. 1599 ;-- CL 1897, 4859 ;-- CL 1915, 6001 ;-- CL 1929, 9243 ;-- CL 1948, 438.101

Notes of Decisions
Cited in 6 cases, 1953–1999 · leading case: In Re Dow Corning Corp., 237 B.R. 380 (Bankr. E.D. Mich. 1999).
In Re Dow Corning Corp., 237 B.R. 380 (Bankr. E.D. Mich. 1999). · cites it 2× “61 (loans to business entities made by a regulated lender can carry any rate of interest agreed to by the parties); Mich.Comp.Laws § 438.101 (interest on unpaid interest accrues at 7%, though parties can agree to pay up to 10%); Mich.”
Barbour v. Handlos Real Est. & Bldg. Corp., 393 N.W.2d 581 (Mich. Ct. App. 1986). · cites it 2× “MCL 438.101; MSA 19.21 provides that, when an installment of interest on a mortgage is due and unpaid, interest may be charged on the due and unpaid interest at the rate specified in the mortgage, not exceeding ten percent.”
Wilson Leasing Co. v. Seaway Pharmacal Corp., 220 N.W.2d 83 (Mich. Ct. App. 1974). · cites it 2× “MCLA 438.101; MSA 19.21. Expenses Under UCC 9-504(1)(a) [3] a secured creditor forced to dispose of collateral is entitled to recover the "reasonable expenses" of such disposition.”
Matter of Stratton, 30 B.R. 44 (Bankr. W.D. Mich. 1983). “§ 438.101]. Further, interest is required here under § 1325(a)(5)(B) of the Bankruptcy Code to give the creditor the present value of his money.”
Visioneering Inc. Profit Sharing Trust v. Belle River Jt. Venture, 386 N.W.2d 185 (Mich. Ct. App. 1986). “MCL 438.101; MSA 19.21 permits the computing of interest at a rate not exceeding ten percent (or the amount specified in the mortgage) on any due and unpaid installments of interest, but not principal.”
Faber v. Glashagen's Est., 61 N.W.2d 34 (Mich. 1953). “In urging reversal of the trial court’s judgment and a remand with instructions, appellant asks for statutory interest on his claim as provided in CL 1948, §438.101 (Stat Ann §19.21). The difficulty with that argument is that payment of interest was specifically waived in the…”
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