Michigan Compiled Laws
174-1962-2A-5 - Part 5 Default (440.2951...440.2982)
Section 440.2972 - Insolvency of Lessor; Recovery of Conforming Goods After Receipt of First Installment of Rent and Security.

Sec. 2A522.
(1) Subject to subsection (2) and even though the goods have not been shipped, a lessee who has paid a part or all of the rent and security for goods identified to a lease contract (section 2A217) on making and keeping good a tender of any unpaid portion of the rent and security due under the lease contract may recover the goods identified from the lessor if the lessor becomes insolvent within 10 days after receipt of the first installment of rent and security.
(2) A lessee acquires the right to recover goods identified to a lease contract only if they conform to the lease contract.
History: Add. 1992, Act 101, Eff. Sept. 30, 1992

Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 440 - Uniform Commercial Code

Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102)

Article 2A - Leases (440.2801...440.2982)

174-1962-2A-5 - Part 5 Default (440.2951...440.2982)

Section 440.2951 - Default; Rights and Remedies; Self-Help; Enforcement Covering Real Property and Goods.

Section 440.2952 - Notice of Default or Enforcement.

Section 440.2953 - Default; Rights and Remedies Provided in Lease Agreement; Optional Remedies; Liquidation, Limitation, Alteration or Exclusion of Consequential Damages; Collateral or Ancillary Obligations and Promises.

Section 440.2954 - Liquidation of Damages; Reasonableness; Restitution; Setoff.

Section 440.2955 - Cancellation or Termination of Lease Contract; Discharge of Executory Obligations; Material Misrepresentation or Fraud; Rescission, Rejection, or Return of Goods as Bar to Rights or Remedies.

Section 440.2956 - Default; Commencement and Accrual of Action; Effect of Termination; Applicability of Section to Tolling of Statute of Limitations or Causes of Action Accrued Before Effective Date of Article.

Section 440.2957 - Damages Based on Market Rent.

Section 440.2958 - Default by Lessor; Rights and Remedies; Breach of Warranty; Security Interest for Rent, Security, and Expenses; Deduction of Damages From Rent Due.

Section 440.2959 - Failure of Goods or Tender or Delivery to Conform to Lease Contract; Rights of Lessee; Effectiveness of Rejection of Goods.

Section 440.2960 - Installment Lease Contract; Rejecting Nonconforming Delivery; Conditions Requiring Acceptance; Reinstatement of Lease Contract.

Section 440.2961 - Rejection of Goods in Merchant Lessee's Possession or Control; Duties of Merchant Lessee; Right to Reimbursement; Good Faith Conduct; Purchaser in Good Faith.

Section 440.2962 - Rejection of Goods in Lessee's Possession; Rights and Obligations of Lessee.

Section 440.2963 - Rejection of Goods Before Expiration of Time for Performance; Rights of Lessor or Supplier.

Section 440.2964 - Rejection of Goods; Failure of Lessee to State Particular Defect or Reserve Rights When Paying Consideration Against Documents; Effect.

Section 440.2965 - Acceptance of Goods; Opportunity to Inspect; Conduct; Accepting Part of Unit.

Section 440.2966 - Acceptance of Goods; Rent; Revocation Prohibited; Exception; Acceptance of Tender; Effect of Suit Against Lessee for Breach of Warranty or Other Obligation; Infringement.

Section 440.2967 - Revoking Acceptance of Nonconforming Lot or Commercial Unit; Conditions; Notification; Rights and Duties of Lessee.

Section 440.2968 - Default by Lessor; Cover; Damages.

Section 440.2969 - Nondelivery or Repudiation by Lessor; Rejection or Revocation of Acceptance by Lessee; Damages; Measure of Damages for Market Rent, Nonconforming Tender or Delivery, or Breach of Warranty.

Section 440.2970 - Default by Lessor; Incidental and Consequential Damages.

Section 440.2971 - Specific Performance.

Section 440.2972 - Insolvency of Lessor; Recovery of Conforming Goods After Receipt of First Installment of Rent and Security.

Section 440.2973 - Wrongful Rejection or Revocation; Failure to Make Payment; Repudiation; Default; Rights of Lessor; Damages; Cancellation of Lease.

Section 440.2974 - Additional Rights of Lessor Aggrieved Under MCL 440.2973(1).

Section 440.2975 - Insolvency of Lessee; Refusal to Deliver Goods; Possession, Availability, or Disposition of Goods; Proceeding Without Judicial Process.

Section 440.2976 - Insolvency of Lessee; Stopping Delivery of Goods in Possession of Bailee; Conditions; Notification; Liability for Charges or Damages; Obligation of Carrier.

Section 440.2977 - Default; Disposition of Goods; Damages Based on New Lease Agreement; Rights of Subsequent Good Faith Buyer or Lessee; Accounting for Profit.

Section 440.2978 - Retention or Disposition of Goods by Lessor; Damages.

Section 440.2979 - Default by Lessee; Damages; Holding Identified Goods for Remaining Lease Term; Disposition of Goods by Lessor; Use and Possession of Goods by Lessee; Rent.

Section 440.2980 - Incidental Damages.

Section 440.2981 - Third Party Causing Injury.

Section 440.2982 - Additional Damages.