Michigan Compiled Laws

Mich. Comp. Laws § 440.2501 (2026)

Special property and insurable interest in goods; identification of goods.

✓ current as of July 2026

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UNIFORM COMMERCIAL CODE

Act 174 of 1962

440.2501 Special property and insurable interest in goods; identification of goods.

Sec. 2501.

(1) The buyer obtains a special property and an insurable interest in goods by identification of existing goods as goods to which the contract refers even though the goods so identified are nonconforming and he has an option to return or reject them. Such identification can be made at any time and in any manner explicitly agreed to by the parties. In the absence of explicit agreement identification occurs

(a) when the contract is made if it is for the sale of goods already existing and identified;

(b) if the contract is for the sale of future goods other than those described in paragraph (c), when goods are shipped, marked or otherwise designated by the seller as goods to which the contract refers;

(c) when the crops are planted or otherwise becoming growing crops or the young are conceived if the contract is for the sale of unborn young to be born within 12 months after contracting or for the sale of crops to be harvested within 12 months or the next normal harvest season after contracting whichever is longer.

(2) The seller retains an insurable interest in goods so long as title to or any security interest in the goods remains in him and where the identification is by the seller alone he may until default or insolvency or notification to the buyer that the identification is final substitute other goods for those identified.

(3) Nothing in this section impairs any insurable interest recognized under any other statute or rule of law.

History: 1962, Act 174, Eff. Jan. 1, 1964

Notes of Decisions

Cited in 10 cases (1 in the last 5 years), 1971–2022 · leading case: Nashville Eagle, Inc. v. Ford Motor Credit Co. (In Re Superior Ground Support, Inc.), 140 B.R. 878 (Bankr. W.D. Mich. 1992).

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Nashville Eagle, Inc. v. Ford Motor Credit Co. (In Re Superior Ground Support, Inc.), 140 B.R. 878 (Bankr. W.D. Mich. 1992). · cites it 4× “§ 440.2501 identification can occur in any manner explicitly agreed to by the parties.”

Grogan v. Chesebrough-Ponds, Inc. (In Re Advance Glove Mfg. Co.), 25 B.R. 521 (Bankr. E.D. Mich. 1982). “§ 440.2501. The debtor obtained a property interest in the goods on December 11, 1980, when the goods were shipped.”

Arthur Glick Truck Sales, Inc. v. Stuphen East Corp., 914 F. Supp. 2d 529 (S.D.N.Y. 2012). · cites it 2× “” See Mich. Comp. Laws Ann. § 440.2501 (1); N.Y.”

Comber Tool & Mold Eng'g, Inc. v. Gen. Motors Corp., 853 F. Supp. 238 (E.D. Mich. 1994). · cites it 2× “§ 440.2501. In this case, GM and Dynaplast’s contract explicitly identifies the goods, and GM participated in the identification.”

Hayward v. Postma, 188 N.W.2d 31 (Mich. Ct. App. 1971). · cites it 2× “1 See MCLA § 440.2501 (Stat Ann 1964 Rev § 19.2501).”

W. Dist. of Michigan Trs., Inc. v. First of Am. Bank—Ludington, N.A. (In re Pierce), 63 B.R. 740 (W.D. Mich. 1986). · cites it 2× “Mich.Comp. Laws § 440.2501 (1961) (Mich.Stat.”

Russell v. Transamerica Ins., 322 N.W.2d 178 (Mich. Ct. App. 1982). · cites it 2× “See MCL 440.2501(1); MSA 19.2501, MCL 440.2401; MSA 19.”

United States v. Stephenson, 490 F. Supp. 619 (E.D. Mich. 1979). “Vukson argues that under the Uniform Commercial Code, 2-501(1), Mich. Comp.Laws Ann. 440.2501(1), a special property interest arose in his favor when the chemicals were identified or when specific *622 cans were identified as the ones that he would receive.”

Prod. Solutions Int'l Inc v. PB Prods. LLC (E.D. Mich. 2022). · cites it 2× “” Mich. Comp. Laws § 440.2501 (1)(b). PSI is not entitled to the contract price of the unpurchased travel bags.”

Solomon v. Nat'l Serv. Indus., Inc. (In re Klein's Dep't Store, Inc.), 42 B.R. 393 (E.D. Mich. 1984). “Identification merely gives the buyer an insurable interest in the goods, § 440.2501, and the right to recover the goods from an insolvent seller where the buyer has prepaid all or a portion of the purchase price.”

— Mich. Comp. Laws § 440.2501(1) — 3 cases

Comber Tool & Mold Eng'g, Inc. v. Gen. Motors Corp., 853 F. Supp. 238 (E.D. Mich. 1994). “§ 440.2501. In this case, GM and Dynaplast’s contract explicitly identifies the goods, and GM participated in the identification.”

Russell v. Transamerica Ins., 322 N.W.2d 178 (Mich. Ct. App. 1982). “See MCL 440.2501(1); MSA 19.2501, MCL 440.2401; MSA 19.”

— Mich. Comp. Laws § 440.2501(3)(b) — 1 case

Russell v. Transamerica Ins., 322 N.W.2d 178 (Mich. Ct. App. 1982). “See MCL 440.2501(1); MSA 19.2501, MCL 440.2401; MSA 19.”

— Mich. Comp. Laws § 440.2501(l)(a) — 1 case

Nashville Eagle, Inc. v. Ford Motor Credit Co. (In Re Superior Ground Support, Inc.), 140 B.R. 878 (Bankr. W.D. Mich. 1992). “§ 440.2501 identification can occur in any manner explicitly agreed to by the parties.”

— Mich. Comp. Laws § 440.2501(l)(b) — 1 case

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