Sec. 1309.
A term providing that 1 party or that party's successor in interest may accelerate payment or performance or require collateral or additional collateral "at will" or when the party "deems itself insecure", or words of similar import, means that the party has power to do so only if that party in good faith believes that the prospect of payment or performance is impaired. The burden of establishing lack of good faith is on the party against which the power has been exercised.
History: Add. 2012, Act 86, Eff. July 1, 2013
Structure Michigan Compiled Laws
Chapter 440 - Uniform Commercial Code
Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102)
Article 1 - General Provisions (440.1101...440.1310)
174-1962-1-3 - Part 3 Territorial Applicability and General Rules (440.1301...440.1310)
Section 440.1302 - Agreements; "Unless Otherwise Agreed"; Implication.
Section 440.1303 - Course of Performance, Course of Dealing, or Usage of Trade.
Section 440.1304 - Good Faith Obligation.
Section 440.1305 - Administration of Remedies; Enforcement of Right or Obligation.
Section 440.1306 - Claim or Right Arising Out of Alleged Breach; Discharge.
Section 440.1307 - Prima Facie Evidence of Certain Documents.