HB-4452, As Passed House, April 27, 2005

SUBSTITUTE FOR

HOUSE BILL NO. 4452

                      (As amended April 26, 2005)

     A bill to amend 1987 PA 96, entitled

"The mobile home commission act,"

by amending section 30d (MCL 125.2330d).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 30d. (1)  If All of the following apply if an owner

named in a certificate of title creates a security interest in the

mobile home described in the certificate:

     (a) The owner shall immediately execute an application in the

form prescribed by the department showing the name and address of

the holder of the security interest and deliver the certificate of

title, the application,  and [a fee of $1.00 ]  together with and a

copy of the application which need not be signed, to the holder of

the security interest.

     (b) The holder of the security interest shall cause the

certificate of title, the application,  and the required fee, and

the copy of the application to be mailed or delivered to the

department.

     (c) The department shall indicate on the copy of the

application the date and place of filing of the application and

return the copy to the person presenting it.

     (d) Upon receipt of the certificate of title, application, and

the required fee, the department shall issue a new certificate in

the form provided  by in section 30b, setting forth the name and

address of each holder of a security interest in the mobile home

for which a termination statement has not been filed and the date

on which the application first stating the security interest was

filed, and mail the certificate to the owner.

     (2) A holder of a security interest may assign, absolutely or

otherwise, the security interest to a person other than the owner

without affecting the interest of the owner or the validity of the

security interest, but a person without notice of the assignment is

protected in dealing with the holder of the security interest as

the holder of the security interest. The assignee may have  the

certificate of title indorsed with the assignee named its interest

as the holder of the security interest shown on the certificate of

title by providing the department with a copy of the assignment

instrument but the failure of the assignee to do so  shall does

not affect the validity of the security interest or the assignment

of the security interest.

     (3) The filing  under this section or under section 30a  of an

application for a certificate of title  showing the name and

address of the holder of indicating a security interest in a

mobile home under this act is required to perfect the security

interest under this act and is equivalent to the filing of a

financing statement with respect to the security interest under

article 9 of the uniform commercial code,  Act No. 174 of the

Public Acts of 1962, being sections 440.9101 to 440.9994 of the

Michigan Compiled Laws 1962 PA 174, MCL 440.9101 to 440.9994. A

security interest in a mobile home perfected under this act has

priority rights over the rights of a lien creditor.

     (4)  When If there is not an outstanding obligation or

commitment to make advances, incur obligations, or otherwise give

value, secured or to be secured by a security interest in a mobile

home, the secured party shall, within 10  30 days after

satisfaction of the obligation, and, in any event within 30 days,

execute a termination statement in the form prescribed by the

department and mail or deliver the termination statement to the

owner or other person as the owner may direct.  The owner other

than An owner who is not a dealer holding the mobile home for

resale, shall promptly cause the certificate, all termination

statements, [and] an application for certificate of title,

accompanied by [ a fee of $1.00] to be mailed or delivered to the

department.  , which The department shall issue a new certificate.