Michigan Compiled Laws

Mich. Comp. Laws § 440.3307 (2026)

Fiduciary duty; breach.

✓ current as of July 2026

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UNIFORM COMMERCIAL CODE

Act 174 of 1962

440.3307 Fiduciary duty; breach.

Sec. 3307.

(1) As used in this section:

(a) "Fiduciary" means an agent, trustee, partner, corporate officer or director, or other representative owing a fiduciary duty with respect to an instrument.

(b) "Represented person" means the principal, beneficiary, partnership, corporation, or other person to whom the duty stated in subdivision (a) is owned.

(2) If (i) an instrument is taken from a fiduciary for payment or collection or for value, (ii) the taker has knowledge of the fiduciary status of the fiduciary, and (iii) the represented person makes a claim to the instrument or its proceeds on the basis that the transaction of the fiduciary is a breach of fiduciary duty, the following rules apply:

(a) Notice of breach of fiduciary duty by the fiduciary is notice of the claim of the represented person.

(b) In the case of an instrument payable to the represented person or the fiduciary as such, the taker has notice of the breach of fiduciary duty if the instrument is (i) taken in payment of or as security for a debt known by the taker to be the personal debt of the fiduciary, (ii) taken in a transaction known by the taker to be for the personal benefit of the fiduciary, or (iii) deposited to an account other than an account of the fiduciary, as such, or an account of the represented person.

(c) If an instrument is issued by the represented person or the fiduciary as such, and made payable to the fiduciary personally, the taker does not have notice of the breach of fiduciary duty unless the taker knows of the breach of fiduciary duty.

(d) If an instrument is issued by the represented person or the fiduciary as such, to the taker as payee, the taker has notice of the breach of fiduciary duty if the instrument is (i) taken in payment of or as security for a debt known by the taker to be the personal debt of the fiduciary, (ii) taken in a transaction known by the taker to be for the personal benefit of the fiduciary, or (iii) deposited to an account other than an account of the fiduciary, as such, or an account of the represented person.

History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993

Notes of Decisions

Cited in 5 cases, 1971–2014 · leading case: Grand Rapids Auto Sales, Inc. v. MBNA Am. Bank, 227 F. Supp. 2d 721 (W.D. Mich. 2002).

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Grand Rapids Auto Sales, Inc. v. MBNA Am. Bank, 227 F. Supp. 2d 721 (W.D. Mich. 2002). · cites it 3× “§ 440.3307(2). Assuming for purposes of this motion that Stewart qualifies as a fiduciary, see M.”

Dawda, Mann, Mulcahy & Sadler, P.L.C. v. Bank of Am., N.A., 62 F. Supp. 3d 651 (E.D. Mich. 2014). · cites it 32× “Mich. Comp. Laws § 440.3307 . Defendant also seeks refuge in another section of the UCC, claiming that Mich.”

Antoine F. Harik, ph.d. v. Salim Harik, ph.d., 861 F.2d 139 (6th Cir. 1988). “See Mich.Comp.Laws Ann. § 440.3307 (West 1967).”

Behrens v. Apessos, 197 N.W.2d 886 (Mich. Ct. App. 1972). · cites it 4× “MCLA 440.3307(2); MSA 19.3307(2). This *429 plaintiffs did during the direct examination of Jack Behrens.”

Gutherie v. Thomas Built Homes, Inc., 185 N.W.2d 405 (Mich. Ct. App. 1971). “Rather, its purpose was to attack plaintiff’s claimed status as a holder in due course under MOLA §440.3307 (Stat Ann 1964 Rev § 19.3307). Subsection 3 of this section of the Uniform Commercial Code clearly calls for a fact determination of plaintiff’s status.”

— Mich. Comp. Laws § 440.3307(2) — 2 cases

Grand Rapids Auto Sales, Inc. v. MBNA Am. Bank, 227 F. Supp. 2d 721 (W.D. Mich. 2002). “§ 440.3307(2). Assuming for purposes of this motion that Stewart qualifies as a fiduciary, see M.”

Behrens v. Apessos, 197 N.W.2d 886 (Mich. Ct. App. 1972). “MCLA 440.3307(2); MSA 19.3307(2). This *429 plaintiffs did during the direct examination of Jack Behrens.”

— Mich. Comp. Laws § 440.3307(2)(b) — 1 case

Grand Rapids Auto Sales, Inc. v. MBNA Am. Bank, 227 F. Supp. 2d 721 (W.D. Mich. 2002). “§ 440.3307(2). Assuming for purposes of this motion that Stewart qualifies as a fiduciary, see M.”

— Mich. Comp. Laws § 440.3307(l)(a) — 1 case

Grand Rapids Auto Sales, Inc. v. MBNA Am. Bank, 227 F. Supp. 2d 721 (W.D. Mich. 2002). “§ 440.3307(2). Assuming for purposes of this motion that Stewart qualifies as a fiduciary, see M.”

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