Sec. 5235.
In all cases of mutual debts or mutual credits between the estate of an assignor and a creditor, the account shall be stated and 1 debt shall be set off against the other and the balance only shall be allowed or paid. A set-off or counter claim shall not be allowed in favor of any debtor of the assignor which is not provable against his estate, or which was purchased by or transferred to such debtor after the filing of the assignment or prior to the filing thereof with a view to such use and with knowledge or notice that such assignor was insolvent.
History: 1961, Act 236, Eff. Jan. 1, 1963
Structure Michigan Compiled Laws
Chapter 600 - Revised Judicature Act of 1961
Act 236 of 1961 - Revised Judicature Act of 1961 (600.101 - 600.9948)
236-1961-52 - Chapter 52 Assignments for the Benefit of Creditors (600.5201...600.5265)
Section 600.5205 - Property Conveyed; General Powers of Assignee.
Section 600.5211 - Specific Powers of Assignee.
Section 600.5215 - Appraisal of Property; Sale; Notice.
Section 600.5221 - Proof of Claims; Notice; Filing; List of Creditors.
Section 600.5225 - Proof of Claims; Contents; Verification.
Section 600.5231 - Contest of Claims; Procedure, Costs; Filing Fee.
Section 600.5235 - Set-Off of Mutual Debts and Credits.
Section 600.5245 - Assignee; Accounts; Reports; Completion of Duties; Extension of Time; Notice.
Section 600.5251 - Payment of Claims; Order; Method; Time.
Section 600.5255 - Compensation of Assignee; Application; Notice to Creditors.