Michigan Compiled Laws
Mich. Comp. Laws § 440.9402 (2026)
Secured party not obligated on contract of debtor or in tort.
✓ current as of July 2026
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UNIFORM COMMERCIAL CODE
Act 174 of 1962
440.9402 Secured party not obligated on contract of debtor or in tort.
Sec. 9402.
The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor's acts or omissions.
History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1978, Act 369, Eff. Jan. 1, 1979 ;-- Am. 1980, Act 53, Imd. Eff. Mar. 27, 1980 ;-- Am. 1988, Act 130, Eff. Sept. 1, 1988 ;-- Am. 1989, Act 216, Imd. Eff. Nov. 27, 1989 ;-- Am. 1998, Act 489, Imd. Eff. Jan. 4, 1999 ;-- Am. 2000, Act 348, Eff. July 1, 2001
Notes of Decisions
Cited in 27
cases (1 in the last 5 years), 1969–2024 · leading case: Cont'l Oil Co. v. Citizens Trust & Sav. Bank, 244 N.W.2d 243 (Mich. 1976).
Cont'l Oil Co. v. Citizens Trust & Sav. Bank, 244 N.W.2d 243 (Mich. 1976). “II —Duty Under the Code of a Secured Creditor Where the Debtor Subsequently Changes Its Name a) Duty Imposed Under MCLA 440.9402; MSA 19.9402. The formal requisites for perfection of a security interest through the filing of a financing statement are laid out in MCLA 440.”
Matter of Cliff's Ridge Skiing Corp., 123 B.R. 753 (Bankr. W.D. Mich. 1991). “Mich.Comp.Laws Ann. § 440.9402(1). In addition, a financing statement covering fixtures or goods to become fixtures must: (6) state that it covers this type of collateral; (7) recite it is to be recorded in the real estate records; (8) contain a description of the real estate…”
In Re Damon J. & Regina M. Kroskie, Debtors. James W. Boyd, Chapter 7 Tr. v. Chase Manhattan Mortg. Corp., 315 F.3d 644 (6th Cir. 2003). “Because the UCC recognizes that a security interest in a fixture can be perfected by a mortgage on the subject real estate in lieu of an Article 9 financing statement, Mich. Comp. Laws § 440.9402 (6) (amended 2000), the district court determined that this alternative is equally…”
In Re Darling Lumber, Inc., 56 B.R. 669 (Bankr. E.D. Mich. 1986). “The Michigan Supreme Court affirmed a decision of the appeals court holding that the bank’s interest was superior to Continental Oil’s notwithstanding the fact that the name of the debtor had changed substantially subsequent to the filing of the first financing statement.”
Cont'l Oil Co. v. Citizens Trust & Sav. Bank, 225 N.W.2d 209 (Mich. Ct. App. 1974). “See MCLA 440.9402; MSA 19.9402-form 1. In June of 1966, debtor amended its articles of incorporation and changed its corporate name to Blossom Trail Growers, Inc.”
Yamaha Motor Corp., USA v. Tri-City Motors & Sports, Inc., 429 N.W.2d 871 (Mich. Ct. App. 1988). “MCL 440.9402; MSA 19.9402. Apparently, the protective measures were either never proposed or never consummated.”
Peterson v. Old Kent Bank & Trust Co. (In Re Beefeaters, Inc.), 27 B.R. 848 (Bankr. W.D. Mich. 1983). “§ 440.9402(5) ] generally. In his brief filed on July 2, 1982, the trustee specifically set forth all the arguments he now raised.”
In Re Nat'l Welding of Michigan, Inc., 61 B.R. 314 (W.D. Mich. 1986). “See Mich.Comp.Laws Ann. § 440.9402(5). The security interests in question in the Skyland and National Welding appeals were both properly perfected.”
Robbins v. Prod. Credit Ass'n of Lansing (In Re Walkington), 62 B.R. 989 (Bankr. W.D. Mich. 1986). “§ 440.9402(7)] by adopting the 1972 U.C.C.”
Pillsbury Co. v. Herbolsheimer (In Re Herbolsheimer), 63 B.R. 118 (Bankr. E.D. Mich. 1985). “§ 440.9402, Official Comment, Par. 2 (1962 Text); In re Kalamazoo Steel Process, Inc.”
Boyd v. NBD Bank (In Re Thomas), 231 B.R. 8 (Bankr. W.D. Mich. 1999). “See Mich.Comp.Laws Ann. § 440.9402(8) (“A financing statement substantially complying with the requirements of this section is effective even though it contains minor errors which are not seriously misleading.”
NBD-Sandusky Bank v. Ritter, 446 N.W.2d 340 (Mich. Ct. App. 1989). “Further, filing of the financing statement was accomplished *593 before August 15, as permitted by MCL 440.9402(1); MSA 19.9402(1). John Deere's purchase money security interest was therefore perfected on August 15, the date the "debtor," Ritter, received "possession of the…”
Mich. Comp. Laws § 440.9402(1): 6 cases
Matter of Cliff's Ridge Skiing Corp., 123 B.R. 753 (Bankr. W.D. Mich. 1991). “Mich.Comp.Laws Ann. § 440.9402(1). In addition, a financing statement covering fixtures or goods to become fixtures must: (6) state that it covers this type of collateral; (7) recite it is to be recorded in the real estate records; (8) contain a description of the real estate…”
NBD-Sandusky Bank v. Ritter, 446 N.W.2d 340 (Mich. Ct. App. 1989). “Further, filing of the financing statement was accomplished *593 before August 15, as permitted by MCL 440.9402(1); MSA 19.9402(1). John Deere's purchase money security interest was therefore perfected on August 15, the date the "debtor," Ritter, received "possession of the…”
Int'l Harvester Credit Corp. v. Vos, 290 N.W.2d 401 (Mich. Ct. App. 1980).
Cont'l Oil Co. v. Citizens Trust & Sav. Bank, 225 N.W.2d 209 (Mich. Ct. App. 1974). “See MCLA 440.9402; MSA 19.9402-form 1. In June of 1966, debtor amended its articles of incorporation and changed its corporate name to Blossom Trail Growers, Inc.”
Shinville Leasing, Inc. v. Miller Equip. Co. (In Re Shinville Leasing, Inc.), 46 B.R. 352 (Bankr. W.D. Mich. 1985).
Mich. Comp. Laws § 440.9402(14): 1 case
Grabscheid v. Calvert Sales, Inc., 157 B.R. 600 (E.D. Mich. 1993).
Mich. Comp. Laws § 440.9402(15): 1 case
Grabscheid v. Calvert Sales, Inc., 157 B.R. 600 (E.D. Mich. 1993).
Mich. Comp. Laws § 440.9402(4): 1 case
Pillsbury Co. v. Herbolsheimer (In Re Herbolsheimer), 63 B.R. 118 (Bankr. E.D. Mich. 1985). “§ 440.9402, Official Comment, Par. 2 (1962 Text); In re Kalamazoo Steel Process, Inc.”
Mich. Comp. Laws § 440.9402(5): 5 cases
Cont'l Oil Co. v. Citizens Trust & Sav. Bank, 244 N.W.2d 243 (Mich. 1976). “II —Duty Under the Code of a Secured Creditor Where the Debtor Subsequently Changes Its Name a) Duty Imposed Under MCLA 440.9402; MSA 19.9402. The formal requisites for perfection of a security interest through the filing of a financing statement are laid out in MCLA 440.”
Matter of Cliff's Ridge Skiing Corp., 123 B.R. 753 (Bankr. W.D. Mich. 1991). “Mich.Comp.Laws Ann. § 440.9402(1). In addition, a financing statement covering fixtures or goods to become fixtures must: (6) state that it covers this type of collateral; (7) recite it is to be recorded in the real estate records; (8) contain a description of the real estate…”
In Re Nat'l Welding of Michigan, Inc., 61 B.R. 314 (W.D. Mich. 1986). “See Mich.Comp.Laws Ann. § 440.9402(5). The security interests in question in the Skyland and National Welding appeals were both properly perfected.”
Peterson v. Old Kent Bank & Trust Co. (In Re Beefeaters, Inc.), 27 B.R. 848 (Bankr. W.D. Mich. 1983). “§ 440.9402(5) ] generally. In his brief filed on July 2, 1982, the trustee specifically set forth all the arguments he now raised.”
Cont'l Oil Co. v. Citizens Trust & Sav. Bank, 225 N.W.2d 209 (Mich. Ct. App. 1974). “See MCLA 440.9402; MSA 19.9402-form 1. In June of 1966, debtor amended its articles of incorporation and changed its corporate name to Blossom Trail Growers, Inc.”
Mich. Comp. Laws § 440.9402(6): 4 cases
Matter of Cliff's Ridge Skiing Corp., 123 B.R. 753 (Bankr. W.D. Mich. 1991). “Mich.Comp.Laws Ann. § 440.9402(1). In addition, a financing statement covering fixtures or goods to become fixtures must: (6) state that it covers this type of collateral; (7) recite it is to be recorded in the real estate records; (8) contain a description of the real estate…”
In Re Damon J. & Regina M. Kroskie, Debtors. James W. Boyd, Chapter 7 Tr. v. Chase Manhattan Mortg. Corp., 315 F.3d 644 (6th Cir. 2003). “Because the UCC recognizes that a security interest in a fixture can be perfected by a mortgage on the subject real estate in lieu of an Article 9 financing statement, Mich. Comp. Laws § 440.9402 (6) (amended 2000), the district court determined that this alternative is equally…”
Chase Manhattan Mortg. Corp. v. Boyd (In re Damon J.), 270 B.R. 446 (W.D. Mich. 2001).
In Re Kroskie, 270 B.R. 446 (W.D. Mich. 2001).
Mich. Comp. Laws § 440.9402(6)(a): 1 case
Matter of Cliff's Ridge Skiing Corp., 123 B.R. 753 (Bankr. W.D. Mich. 1991). “Mich.Comp.Laws Ann. § 440.9402(1). In addition, a financing statement covering fixtures or goods to become fixtures must: (6) state that it covers this type of collateral; (7) recite it is to be recorded in the real estate records; (8) contain a description of the real estate…”
Mich. Comp. Laws § 440.9402(7): 3 cases
In Re Darling Lumber, Inc., 56 B.R. 669 (Bankr. E.D. Mich. 1986). “The Michigan Supreme Court affirmed a decision of the appeals court holding that the bank’s interest was superior to Continental Oil’s notwithstanding the fact that the name of the debtor had changed substantially subsequent to the filing of the first financing statement.”
Robbins v. Prod. Credit Ass'n of Lansing (In Re Walkington), 62 B.R. 989 (Bankr. W.D. Mich. 1986). “§ 440.9402(7)] by adopting the 1972 U.C.C.”
Indus. Mach. & Equip. Co. v. Lapeer Cnty. Bank & Trust Co., 540 N.W.2d 781 (Mich. Ct. App. 1995).
Mich. Comp. Laws § 440.9402(8): 4 cases
Boyd v. NBD Bank (In Re Thomas), 231 B.R. 8 (Bankr. W.D. Mich. 1999). “See Mich.Comp.Laws Ann. § 440.9402(8) (“A financing statement substantially complying with the requirements of this section is effective even though it contains minor errors which are not seriously misleading.”
Peterson v. Old Kent Bank & Trust Co. (In Re Beefeaters, Inc.), 27 B.R. 848 (Bankr. W.D. Mich. 1983). “§ 440.9402(5) ] generally. In his brief filed on July 2, 1982, the trustee specifically set forth all the arguments he now raised.”
Matter of Skyland, Inc., 28 B.R. 354 (Bankr. W.D. Mich. 1983).
Indus. Mach. & Equip. Co. v. Lapeer Cnty. Bank & Trust Co., 540 N.W.2d 781 (Mich. Ct. App. 1995).
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