Sec. 3809.
A personal representative shall pay a secured claim on the basis of the amount allowed if the creditor surrenders the security. Otherwise, the personal representative shall pay on the basis of 1 of the following:
(a) If the creditor exhausts the security before receiving payment, upon the amount of the claim allowed less the fair value of the security.
(b) If the creditor does not have the right to exhaust the security or has not done so, upon the amount of the claim allowed less the value of the security determined by converting it into money according to the terms of the agreement under which the security was delivered to the creditor or by the creditor and personal representative by agreement, arbitration, compromise, or litigation.
History: 1998, Act 386, Eff. Apr. 1, 2000 Popular Name: EPIC
Structure Michigan Compiled Laws
Chapter 700 - Estates and Protected Individuals Code
Act 386 of 1998 - Estates and Protected Individuals Code (700.1101 - 700.8206)
Article III - Probate of Wills and Administration (700.3101...700.3988)
386-1998-III-8 - Part 8 Creditors' Claims (700.3801...700.3815)
Section 700.3801 - Notice of Creditors.
Section 700.3802 - Statute of Limitations.
Section 700.3803 - Limitations on Time for Presentation of Claims.
Section 700.3805 - Priority of Claim Payments; Insufficient Assets.
Section 700.3806 - Allowance and Disallowance of Claims.
Section 700.3807 - Payment of Claims.
Section 700.3808 - Individual Liability of Personal Representative.
Section 700.3809 - Secured Claims.
Section 700.3810 - Claims Not Due and Contingent or Unliquidated Claims.
Section 700.3811 - Counterclaims.
Section 700.3812 - Limitation on Execution or Levy Against Property of Estate.
Section 700.3813 - Settlement of Claims.
Section 700.3814 - Encumbered Assets.
Section 700.3815 - Effect of Administration in More Than One State.