UNIFORM COMMERCIAL CODE
Act 174 of 1962
440.9610 Disposition of collateral after default.
Sec. 9610.
(1) After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.
(2) Every aspect of a disposition of collateral, including the method, manner, time, place, and other terms, must be commercially reasonable. If commercially reasonable, a secured party may dispose of collateral by public or private proceedings, by 1 or more contracts, as a unit or in parcels, and at any time and place and on any terms.
(3) A secured party may purchase collateral either at a public disposition, or at a private disposition only if the collateral is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard price quotations.
(4) A contract for sale, lease, license, or other disposition includes the warranties relating to title, possession, quiet enjoyment, and the like which by operation of law accompany a voluntary disposition of property of the kind subject to the contract.
(5) A secured party may disclaim or modify warranties under subsection (4) either in a manner that would be effective to disclaim or modify the warranties in a voluntary disposition of property of the kind subject to the contract of disposition, or by communicating to the purchaser a record evidencing the contract for disposition and including an express disclaimer or modification of the warranties.
(6) A record is sufficient to disclaim warranties under subsection (5) if it indicates "There is no warranty relating to title, possession, quiet enjoyment, or the like in this disposition" or uses words of similar import.
History: Add. 2000, Act 348, Eff. July 1, 2001
Notes of Decisions
Fodale v. Waste Mgmt. of Michigan, Inc, 718 N.W.2d 827 (Mich. Ct. App. 2006).
· cites it 4× “9504(3) stated, in pertinent part: Unless collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, reasonable notification of the time and place of any public sale or reasonable notification of the time after…”
Prime Fin. Servs. LLC v. Vinton, 761 N.W.2d 694 (Mich. Ct. App. 2008).
“MCL 440.9610(1) (2001). When Bank One asserted this right, it took ownership of the notes, the underlying mortgages transferred to Bank One by operation of law, and the assignments to Prime of the mortgages securing these notes became nullities.”
In Re Sanders, 291 B.R. 97 (Bankr. E.D. Mich. 2003).
· cites it 2× “§ 440.9610(1) provides that “the secured party may sell, lease, license, or otherwise dispose of any or all of the collateral.”
Steinberg v. Young, 641 F. Supp. 2d 637 (E.D. Mich. 2009).
· cites it 2× “§ 440.9610(1), in an effort to recoup its loss.”
Americorp Fin., L.L.C. v. Lansing Pharmacy, L.C., 923 F. Supp. 2d 1023 (E.D. Mich. 2013).
· cites it 2× “Because Plaintiff was obligated to proceed in a “commercially reasonable” manner in selling this equipment, see Mich. Comp. Laws § 440.9610 (2), Defendants argue that no judgment may be entered until they are given an opportunity to raise any desired challenges to Plaintiffs…”
Boyd v. Direct Capital Corp. (In Re Pizzano), 439 B.R. 445 (Bankr. W.D. Mich. 2010).
“§§ 440.9610 or 440.9620. Without a disposition under the UCC, the Debtor’s interest in the Corvette had not been transferred either to Direct Capital or a purchaser at a foreclosure sale, and therefore remained vested in the Debtor, subject to Direct Capital’s security interest.”
Tir Capital LLC v. Hush Ent. Inc (Mich. Ct. App. 2026).
· cites it 4× “First, defendants argue that plaintiff’s sale of Hush Entertainment’s secured assets was not “commercially reasonable” as required by MCL 440.9610. This is significant, according to defendants, because MCL 440.”
Dow Chem. Employees' Credit Union v. Brenda Geiling (Mich. Ct. App. 2018).
· cites it 2× “Article 9 provides that, after a default, a secured party may “dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.”
Dow Chem. Employees' Credit Union v. Brenda Geiling (Mich. Ct. App. 2018).
· cites it 2× “Article 9 provides that, after a default, a secured party may “dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.”
Bank of the West v. Hardrock Hdd Inc (Mich. Ct. App. 2019).
““A disposition of collateral is made in a commercially reasonable manner if the disposition is made in the usual manner on any recognized market, at the price current in any recognized market at the time of the disposition, or otherwise in conformity with reasonable commercial…”
C Igcfco III LLC v. One Way Loans LLC (Mich. Ct. App. 2024).
“2 Despite the acknowledgment that the consent judgment was at issue, defendants alleged that Michigan’s Uniform Commercial Code (UCC) governed interests in “personal property” and that disposition of collateral must be in a commercially reasonable form, including the method,…”
— Mich. Comp. Laws § 440.9610(1) — 7 cases
Fodale v. Waste Mgmt. of Michigan, Inc, 718 N.W.2d 827 (Mich. Ct. App. 2006).
“9504(3) stated, in pertinent part: Unless collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, reasonable notification of the time and place of any public sale or reasonable notification of the time after…”
Prime Fin. Servs. LLC v. Vinton, 761 N.W.2d 694 (Mich. Ct. App. 2008).
“MCL 440.9610(1) (2001). When Bank One asserted this right, it took ownership of the notes, the underlying mortgages transferred to Bank One by operation of law, and the assignments to Prime of the mortgages securing these notes became nullities.”
Steinberg v. Young, 641 F. Supp. 2d 637 (E.D. Mich. 2009).
“§ 440.9610(1), in an effort to recoup its loss.”
In Re Sanders, 291 B.R. 97 (Bankr. E.D. Mich. 2003).
“§ 440.9610(1) provides that “the secured party may sell, lease, license, or otherwise dispose of any or all of the collateral.”
Dow Chem. Employees' Credit Union v. Brenda Geiling (Mich. Ct. App. 2018).
“Article 9 provides that, after a default, a secured party may “dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.”
— Mich. Comp. Laws § 440.9610(2) — 4 cases
Dow Chem. Employees' Credit Union v. Brenda Geiling (Mich. Ct. App. 2018).
“Article 9 provides that, after a default, a secured party may “dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.”
Dow Chem. Employees' Credit Union v. Brenda Geiling (Mich. Ct. App. 2018).
“Article 9 provides that, after a default, a secured party may “dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.”
C Igcfco III LLC v. One Way Loans LLC (Mich. Ct. App. 2024).
“2 Despite the acknowledgment that the consent judgment was at issue, defendants alleged that Michigan’s Uniform Commercial Code (UCC) governed interests in “personal property” and that disposition of collateral must be in a commercially reasonable form, including the method,…”
Tir Capital LLC v. Hush Ent. Inc (Mich. Ct. App. 2026).
“First, defendants argue that plaintiff’s sale of Hush Entertainment’s secured assets was not “commercially reasonable” as required by MCL 440.9610. This is significant, according to defendants, because MCL 440.”
— Mich. Comp. Laws § 440.9610(3) — 1 case
In Re Sanders, 291 B.R. 97 (Bankr. E.D. Mich. 2003).
“§ 440.9610(1) provides that “the secured party may sell, lease, license, or otherwise dispose of any or all of the collateral.”
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