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

Mich. Comp. Laws § 440.9617 (2026)

Rights of transferee of collateral.

✓ current as of July 2026
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UNIFORM COMMERCIAL CODE


Act 174 of 1962


440.9617 Rights of transferee of collateral.

Sec. 9617.

    (1) A secured party's disposition of collateral after default does all of the following:

    (a) Transfers to a transferee for value all of the debtor's rights in the collateral.

    (b) Discharges the security interest under which the disposition is made.

    (c) Discharges any subordinate security interest or other subordinate lien.

    (2) A transferee that acts in good faith takes free of the rights and interests described in subsection (1), even if the secured party fails to comply with this article or the requirements of any judicial proceeding.

    (3) If a transferee does not take free of the rights and interests described in subsection (1), the transferee takes the collateral subject to all of the following:

    (a) The debtor's rights in the collateral.

    (b) The security interest or agricultural lien under which the disposition is made.

    (c) Any other security interest or other lien.

History: Add. 2000, Act 348, Eff. July 1, 2001

Notes of Decisions
Cited in 3 cases, 2003–2017 · leading case: Am. BioCare Inc. v. Howard & Howard Attorneys PLLC, 702 F. App'x 416 (6th Cir. 2017).
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Am. BioCare Inc. v. Howard & Howard Attorneys PLLC, 702 F. App'x 416 (6th Cir. 2017). “See Mich. Comp. Laws § 440.9617 (2)-(3). Michigan law holds that where a party to a foreclosure sale acts in bad faith, the purchaser (i.”
In Re Sanders, 291 B.R. 97 (Bankr. E.D. Mich. 2003). “§ 440.9617 states that the secured creditor’s disposition of the collateral “[transfers to a transferee for value all of the debtor’s rights in the collateral.”
Boyd v. Direct Capital Corp. (In Re Pizzano), 439 B.R. 445 (Bankr. W.D. Mich. 2010). “§ 440.9617(l)(a) (disposition transfers debtor’s interest in collateral); id.”
— Mich. Comp. Laws § 440.9617(l)(a) — 1 case
Boyd v. Direct Capital Corp. (In Re Pizzano), 439 B.R. 445 (Bankr. W.D. Mich. 2010). “§ 440.9617(l)(a) (disposition transfers debtor’s interest in collateral); id.”
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