Sec. 16.
(1) As used in this section, "good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(2) With court approval, a receiver may use receivership property other than in the ordinary course of business.
(3) With court approval, and after notice and an opportunity for a hearing is given to all creditors and other known interested parties unless the court orders otherwise for cause, a receiver may transfer receivership property other than in the ordinary course of business by sale, lease, license, exchange, or other disposition. Unless the agreement of sale provides otherwise, a sale under this section is free and clear of a lien of the person that obtained appointment of the receiver, any subordinate lien, and any right of redemption but is subject to a senior lien.
(4) A lien on receivership property that is extinguished by a transfer under subsection (3) attaches to the proceeds of the transfer with the same validity, perfection, and priority the lien had on the property immediately before the transfer, even if the proceeds are not sufficient to satisfy all obligations secured by the lien.
(5) A transfer under subsection (3) may occur by means other than a public auction sale. A creditor holding a valid lien on the property to be transferred may purchase the property and offset against the purchase price part or all of the allowed amount secured by the lien, if the creditor tenders funds sufficient to satisfy in full the reasonable expenses of transfer and the obligation secured by any senior lien extinguished by the transfer.
(6) A reversal or modification of an order approving a transfer under subsection (3) does not affect the validity of the transfer to a person that acquired the property in good faith or revive against the person any lien extinguished by the transfer, whether the person knew before the transfer of the request for reversal or modification, unless the court stayed the order before the transfer.
History: 2018, Act 16, Eff. May 7, 2018 ;-- Am. 2020, Act 210, Imd. Eff. Oct. 15, 2020
Structure Michigan Compiled Laws
Chapter 554 - Real and Personal Property
Act 16 of 2018 - Receivership Act (554.1011 - 554.1040)
Section 554.1011 - Short Title.
Section 554.1012 - Definitions.
Section 554.1013 - Court Order; Issuance; Notice and Hearing; Circumstances.
Section 554.1014 - Applicability of Act; Scope; Limitation.
Section 554.1017 - Appointment of Receiver; Objection; Requirements; Disqualifications.
Section 554.1018 - Bond; Alternative Security.
Section 554.1019 - Status of Receiver as Lien Creditor.
Section 554.1020 - Acquisition of Property After Appointment as Receiver; Security Agreement.
Section 554.1022 - Powers and Duties of Receiver.
Section 554.1023 - Duties of Owner.
Section 554.1024 - Stay or Injunction.
Section 554.1025 - Engagement of Professional; Compensation.
Section 554.1027 - "Timeshare Interest" Defined; Executory Contract.
Section 554.1028 - Defenses and Immunities of Receiver.
Section 554.1029 - Quarterly Interim Report of Receiver.
Section 554.1031 - Fees and Expenses.
Section 554.1032 - Removal of Receiver; Replacement; Discharge; Termination.
Section 554.1033 - Final Report of Receiver; Contents; Discharge.
Section 554.1034 - Receivership in Another State; Rights, Powers, and Duties of Ancillary Receiver.
Section 554.1035 - Enforcement by Secured Party; Effect.
Section 554.1036 - Uniformity of Law.
Section 554.1037 - Electronic Signatures in Global and National Commerce Act.
Section 554.1038 - Receiver Appointed Before Effective Date of Act.