Michigan Compiled Laws

Mich. Comp. Laws § 600.5201 (2026)

Common law assignments for the benefit of creditors; requirements for validity; bond of assignee; filing; approval; attachment or execution on assigned property; acknowledgment; inventory.

✓ current as of July 2026

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REVISED JUDICATURE ACT OF 1961

Act 236 of 1961

600.5201 Common law assignments for the benefit of creditors; requirements for validity; bond of assignee; filing; approval; attachment or execution on assigned property; acknowledgment; inventory.

Sec. 5201.

(1) All assignments commonly called common law assignments for the benefit of creditors are void unless the same are without preferences as between such creditors and are of all the property of the assignor not exempt from execution, and the instrument of assignment (or a duplicate thereof), a list of creditors of the assignor, and a bond for the faithful performance of the trust by the assignee are filed in the office of the clerk of the circuit court where said assignor resides, or if he is not a resident of the state, then of the county where the assigned property is principally located, within 10 days after the making thereof.

(2) No such assignment is effectual to convey the title to the property to the assignee until such bond is filed with and approved by said clerk.

(3) No attachment or execution levied upon any assigned property of such assignor after such assignment and before the expiration of the time provided herein for filing such bond, is valid, and does not create any lien upon such property.

(4) Such assignment shall be acknowledged before some officer authorized to take acknowledgments. Such inventory shall be a detailed statement as near as may be of the general description, value and location of all the property and rights assigned, and in cases of persons engaged in business, specifying the original cost of any goods, wares, merchandise, fixtures and furniture. Such list of creditors shall, as far as the assignor can state the same, contain the name and post office address of each creditor, the amount due as near as may be over and above all defenses, the actual consideration for the debt, when contracted, and all securities and the value thereof held by each creditor. Such inventory and list of creditors shall be sworn by the assignor to be full, true and correct to the best of his knowledge, information and belief.

(5) Such bond shall be to the assignor for the joint and several use and benefit of himself and each, any and all of the creditors of such assignor in a penal sum at least double the value of the assigned property as shown by such inventory, and conditioned for the prompt and faithful administration of the trust by the assignee and shall be signed by the assignee and sufficient surety or sureties, who shall, under oath endorsed on said bond, testify that they are worth in the aggregate over and above all exemptions, incumbrances and debts, the penal sum of said bond.

History: 1961, Act 236, Eff. Jan. 1, 1963

Notes of Decisions

Cited in 5 cases (1 in the last 5 years), 1971–2025 · leading case: Advisory Opinion Re Constitutionality of 1972 PA 294, 1972 PA 294 (Mich. 1973).

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Advisory Opinion Re Constitutionality of 1972 PA 294, 1972 PA 294 (Mich. 1973). · cites it 2× “, now MCLA 600.5201; MSA 27A.5201; assignments of accounts receivable, 1945 PA 309 ; 1948 CL 691.”

In Re Est. of the Assignment for the Benefit of Creditors of May, 405 B.R. 443 (Bankr. E.D. Mich. 2008). · cites it 3× “” Mich. Comp. Laws. Ann. § 600.5201(1). The parties in this case agree that the Assignment created a trust, and that it was a voluntary conveyance by May to Findling of title to all of May’s property, to be held in trust for the sole purpose of liquidating May’s assets for the…”

B a Tyler v. David M Findling (Mich. Ct. App. 2020). “The order appointing Findling as Receiver granted Findling the ordinary powers under MCL 600.5201 et seq. to identify and harness the assets of the estate so as to carry out the probate court’s orders.”

20251114_C369872_38_369872.Opn_Order.Pdf (Mich. Ct. App. 2025). “5 Additionally, plaintiff argued that defendant’s assertion that his claim did not accrue until Doris Katkin died is contradicted by caselaw holding that a claim accrues when the alleged wrong is committed, relying 5 Plaintiff also argued that the statute upon which defendant…”

Maguire v. United States, 328 F. Supp. 411 (E.D. Mich. 1971). “§ 600.5201. § 27A.5201 M.S.A. requires the trustee-assignee to file with the Clerk of the appropriate Circuit Court, within ten days of execution of an assignment for the benefit of creditors, a surety bond, a list of the trustee-assignee’s creditors as well as the creditors of…”

— Mich. Comp. Laws § 600.5201(1) — 1 case

In Re Est. of the Assignment for the Benefit of Creditors of May, 405 B.R. 443 (Bankr. E.D. Mich. 2008). “” Mich. Comp. Laws. Ann. § 600.5201(1). The parties in this case agree that the Assignment created a trust, and that it was a voluntary conveyance by May to Findling of title to all of May’s property, to be held in trust for the sole purpose of liquidating May’s assets for the…”

— Mich. Comp. Laws § 600.5201(3) — 1 case

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.