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Terms Used In Michigan Laws 554.1061

  • Assignee: means a person entitled to enforce an assignment of rents. See Michigan Laws 554.1052
  • Assignment of rents: means a transfer of an interest in rents in connection with an obligation secured by real property located in this state and from which the rents arise. See Michigan Laws 554.1052
  • Assignor: means a person that makes an assignment of rents or the successor owner of the real property from which the rents arise. See Michigan Laws 554.1052
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Proceeds: means personal property that is received or collected on account of a tenant's obligation to pay rents. See Michigan Laws 554.1052
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Secured obligation: means an obligation the performance of which is secured by an assignment of rents. See Michigan Laws 554.1052
  • Security instrument: means a document, however denominated, that creates or provides for a security interest in real property, including a land contract, whether or not it also creates or provides for a security interest in personal property. See Michigan Laws 554.1052
    The enforcement of an assignment of rents by 1 or more of the methods identified in sections 7, 8, and 9, the application of proceeds by the assignee under section 12 after enforcement, the payment of expenses under section 13, or an action under section 14(4) does not do any of the following:
    (a) Make the assignee a mortgagee in possession of the real property.
    (b) Make the assignee an agent of the assignor.
    (c) Constitute an election of remedies that precludes a later action to enforce the secured obligation or the security instrument.
    (d) Make the secured obligation or the security instrument unenforceable.
    (e) Limit any right available to the assignee with respect to the secured obligation.