Michigan Laws 554.1057 – Appointment of receiver; petition; priority of receivers
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Terms Used In Michigan Laws 554.1057
- 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
- Document: means information that is inscribed on a tangible medium or that is stored on an electronic or other medium and is retrievable in perceivable form. See Michigan Laws 554.1052
- 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.
- Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government, or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. See Michigan Laws 554.1052
- 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.
- Rents: means any of the following:
(i) Sums payable for the right to possess or occupy, or for the actual possession or occupation of, real property of another person. See Michigan Laws 554.1052Secured 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 State: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See Michigan Laws 554.1052
(1) An assignee is entitled to the appointment of a receiver for the real property subject to the assignment of rents if either of the following applies:
(a) The assignor is in default and any of the following apply:
(i) The assignor has agreed in a signed document to the appointment of a receiver in the event of the assignor’s default.
(ii) It appears likely that the real property and any other collateral granted by the assignor to the assignee may not be sufficient to satisfy the secured obligation.
(iii) The assignor has failed to turn over to the assignee proceeds that the assignee was entitled to collect under this act.
(iv) A subordinate assignee of rents obtains the appointment of a receiver for the real property.
(b) Other circumstances exist that would justify the appointment of a receiver under law of this state other than this act.
(2) An assignee may file a petition for the appointment of a receiver if any of the following apply:
(a) The petition is filed in connection with an action to foreclose the security instrument.
(b) The petition is filed in connection with an action for specific performance of the assignment.
(c) The petition is filed in connection with an action seeking a remedy on account of waste or threatened waste of the real property subject to the assignment.
(d) The petition is filed in connection with an action to otherwise enforce the secured obligation or the assignee’s remedies arising from the assignment.
(e) Other circumstances exist that would justify the appointment of a receiver under law of this state other than this act.
(3) An assignee that files a petition for the appointment of a receiver shall also give a copy of the petition in the manner specified in section 3 to any other person that, 10 days before the date the petition is filed, held a recorded assignment of rents arising from the real property.
(4) If an assignee enforces an assignment of rents by seeking the appointment of a receiver, the date of enforcement is the date on which the assignee files a petition to appoint a receiver as to the assignment of rents if the court enters an order appointing a receiver for the real property subject to the assignment.
(5) From the date of its appointment, a receiver is entitled to collect rents as provided in section 6(2). The receiver also has the authority provided in the order of appointment and law of this state other than this act.
(6) The following rules govern priority among receivers:
(a) If more than 1 assignee qualify under this section for the appointment of a receiver, a receivership requested by an assignee entitled to priority in rents under this act has priority over a receivership requested by a subordinate assignee, even if a court has previously appointed a receiver for the subordinate assignee.
(b) If a subordinate assignee obtains the appointment of a receiver, the receiver may collect the rents and apply the proceeds in the manner specified in the order appointing the receiver until a receiver is appointed under a senior assignment of rents.