Mich. Comp. Laws » Michigan Compiled Laws / Chapter 440 / Act 174 of 1962
Michigan Compiled Laws

Mich. Comp. Laws § 440.9607 (2026)

Collection and enforcement by secured party.

✓ current as of July 2026
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UNIFORM COMMERCIAL CODE


Act 174 of 1962


440.9607 Collection and enforcement by secured party.

Sec. 9607.

    (1) If so agreed, and in any event after default, a secured party may do 1 or more of the following:

    (a) Notify an account debtor or other person obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party.

    (b) Take any proceeds to which the secured party is entitled under section 9315.

    (c) Enforce the obligations of an account debtor or other person obligated on collateral and exercise the rights of the debtor with respect to the obligation of the account debtor or other person obligated on collateral to make payment or otherwise render performance to the debtor, and with respect to any property that secures the obligations of the account debtor or other person obligated on the collateral.

    (d) If it holds a security interest in a deposit account perfected by control under section 9104(1)(a), apply the balance of the deposit account to the obligation secured by the deposit account.

    (e) If it holds a security interest in a deposit account perfected by control under section 9104(1)(b) or (c), instruct the bank to pay the balance of the deposit account to or for the benefit of the secured party.

    (2) If necessary to enable a secured party to exercise under subsection (1)(c) the right of a debtor to enforce a mortgage nonjudicially, the secured party may record both of the following in the office in which a record of the mortgage is recorded:

    (a) A copy of the security agreement that creates or provides for a security interest in the obligation secured by the mortgage.

    (b) The secured party's sworn affidavit in recordable form stating both of the following:

    (i) That a default has occurred with respect to the obligation secured by the mortgage.

    (ii) That the secured party is entitled to enforce the mortgage nonjudicially.

    (3) A secured party shall proceed in a commercially reasonable manner if the secured party meets both of the following:

    (a) Undertakes to collect from or enforce an obligation of an account debtor or other person obligated on collateral.

    (b) Is entitled to charge back uncollected collateral or otherwise to full or limited recourse against the debtor or a secondary obligor.

    (4) A secured party may deduct from the collections made pursuant to subsection (3) reasonable expenses of collection and enforcement, including reasonable attorney fees and legal expenses incurred by the secured party.

    (5) This section does not determine whether an account debtor, bank, or other person obligated on collateral owes a duty to a secured party.

History: Add. 2000, Act 348, Eff. July 1, 2001 ;-- Am. 2012, Act 88, Eff. July 1, 2013

Notes of Decisions
Cited in 8 cases (3 in the last 5 years), 2011–2024 · leading case: In re Lundy Est., 804 N.W.2d 773 (Mich. Ct. App. 2011).
Sort: Relevance Newest Treatment
In re Lundy Est., 804 N.W.2d 773 (Mich. Ct. App. 2011). · cites it 2× “Specifically, MCL 440.9607(1) of the UCC provides: If so agreed, and in any event after default, a secured party may do 1 or more of the following: (d) If it holds a security interest in a deposit account perfected by control under [MCL 440.”
Ladd v. Motor City Plastics Co., 842 N.W.2d 388 (Mich. Ct. App. 2013). “” MCL 440.9607(l)(d). UBT did not waive its right to a setoff.”
Perkins v. Auto-Owners Ins., 301 Mich. App. 658 (Mich. Ct. App. 2013). “” MCL 440.9607(l)(a). Notably, the UCC does not require a secured party to foreclose, to order an account debtor to pay the secured party, or to enforce the claim by judicial procedure.”
Zf Chassis Components LLC v. Saint Jean Indus. Inc (Mich. Ct. App. 2017). · cites it 4× “MCL 440.9607, dealing with remedies after default, provides alternative avenues for a secured party to collect a debt.”
Zf Chassis Components LLC v. Saint Jean Indus. Inc (Mich. Ct. App. 2017). · cites it 4× “MCL 440.9607, dealing with remedies after default, provides alternative avenues for a secured party to collect a debt.”
Navient Solutions v. BPG Off. Partners (Del. Super. Ct. 2024). “, quoting MCL §440.9607(1)(a)). 103 Id., at 652 (emphasis in original).”
Evangelista v. Silver (Bankr. E.D. Mich. 2022). “§ 440.9607(1)(b)(“after default a secured party may .”
Orleans Int'l Inc v. ALTERNA CAPITAL SOLUTIONS (E.D. Mich. 2024). “In its previous Order, the Court found that Alterna, as a secured creditor of RBG, was entitled to notify end-customers regarding payments owed to RBG and collect on its invoices.”
— Mich. Comp. Laws § 440.9607(1) — 1 case
In re Lundy Est., 804 N.W.2d 773 (Mich. Ct. App. 2011). “Specifically, MCL 440.9607(1) of the UCC provides: If so agreed, and in any event after default, a secured party may do 1 or more of the following: (d) If it holds a security interest in a deposit account perfected by control under [MCL 440.”
— Mich. Comp. Laws § 440.9607(1)(a) — 3 cases
Zf Chassis Components LLC v. Saint Jean Indus. Inc (Mich. Ct. App. 2017). “MCL 440.9607, dealing with remedies after default, provides alternative avenues for a secured party to collect a debt.”
Zf Chassis Components LLC v. Saint Jean Indus. Inc (Mich. Ct. App. 2017). “MCL 440.9607, dealing with remedies after default, provides alternative avenues for a secured party to collect a debt.”
Navient Solutions v. BPG Off. Partners (Del. Super. Ct. 2024). “, quoting MCL §440.9607(1)(a)). 103 Id., at 652 (emphasis in original).”
— Mich. Comp. Laws § 440.9607(1)(b) — 1 case
Evangelista v. Silver (Bankr. E.D. Mich. 2022). “§ 440.9607(1)(b)(“after default a secured party may .”
— Mich. Comp. Laws § 440.9607(1)(c) — 2 cases
Zf Chassis Components LLC v. Saint Jean Indus. Inc (Mich. Ct. App. 2017). “MCL 440.9607, dealing with remedies after default, provides alternative avenues for a secured party to collect a debt.”
Zf Chassis Components LLC v. Saint Jean Indus. Inc (Mich. Ct. App. 2017). “MCL 440.9607, dealing with remedies after default, provides alternative avenues for a secured party to collect a debt.”
— Mich. Comp. Laws § 440.9607(3)(a) — 2 cases
Zf Chassis Components LLC v. Saint Jean Indus. Inc (Mich. Ct. App. 2017). “MCL 440.9607, dealing with remedies after default, provides alternative avenues for a secured party to collect a debt.”
Zf Chassis Components LLC v. Saint Jean Indus. Inc (Mich. Ct. App. 2017). “MCL 440.9607, dealing with remedies after default, provides alternative avenues for a secured party to collect a debt.”
— Mich. Comp. Laws § 440.9607(l)(a) — 1 case
Perkins v. Auto-Owners Ins., 301 Mich. App. 658 (Mich. Ct. App. 2013). “” MCL 440.9607(l)(a). Notably, the UCC does not require a secured party to foreclose, to order an account debtor to pay the secured party, or to enforce the claim by judicial procedure.”
— Mich. Comp. Laws § 440.9607(l)(d) — 2 cases
Ladd v. Motor City Plastics Co., 842 N.W.2d 388 (Mich. Ct. App. 2013). “” MCL 440.9607(l)(d). UBT did not waive its right to a setoff.”
In re Lundy Est., 804 N.W.2d 773 (Mich. Ct. App. 2011). “Specifically, MCL 440.9607(1) of the UCC provides: If so agreed, and in any event after default, a secured party may do 1 or more of the following: (d) If it holds a security interest in a deposit account perfected by control under [MCL 440.”
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