Michigan Laws 205.423a – Sale of tobacco product by creditor with security interest; application; “creditor” and “security interest” defined
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Terms Used In Michigan Laws 205.423a
- Department: means the department of treasury. See Michigan Laws 205.422
- Person: means an individual, partnership, fiduciary, association, limited liability company, corporation, or other legal entity. See Michigan Laws 205.422
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
- Tobacco product: means a product containing any amount of tobacco regardless of form including, but not limited to, cigarettes, cigars, noncigarette smoking tobacco, or smokeless tobacco. See Michigan Laws 205.422
- Unclassified acquirer: means a person, except a transportation company or a purchaser at retail from a retailer licensed under the general sales tax act, 1933 PA 167, MCL 205. See Michigan Laws 205.422
- Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
- Wholesaler: means a person who purchases all or part of its tobacco products from a manufacturer and who sells 75% or more of those tobacco products to others for resale. See Michigan Laws 205.422
(1) A creditor that acquires a tobacco product in this state as a result of exercising a security interest may sell that tobacco product without being licensed under this act if both of the following requirements are met:
(a) The creditor receives written approval from the department.
(b) The creditor sells or transfers the tobacco product to a person in this state licensed under this act as either a wholesaler or unclassified acquirer.
(2) A creditor shall apply for approval under this section on a form and in a manner prescribed by the department.
(3) As used in this section, “creditor” and “security interest” mean those terms as defined in section 1201 of the uniform commercial code, 1962 PA 174, MCL 440.1201.