Sec. 3814.
If property of the estate is encumbered by mortgage, pledge, lien, or other security interest and it appears to be in the estate's best interest, the personal representative may pay the encumbrance or a part of the encumbrance, renew or extend an obligation secured by the encumbrance, or convey or transfer the property to the creditor in satisfaction of the lien, in whole or in part, whether or not the encumbrance holder has presented a claim. Payment of an encumbrance does not increase the share of the distributee entitled to the encumbered property unless the distributee is entitled to exoneration.
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.