HB-4452, As Passed Senate, May 12, 2005

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4452

     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 a security interest in a mobile home 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.

     (3) Receipt by the department of a properly tendered

application for a certificate of title on which a security interest

in a mobile home is to be indicated, whether the application is

tendered under this act, is a condition of perfection of a security

interest in the mobile home and is equivalent to filing a financing

statement under the uniform commercial code, 1962 PA 174, MCL

440.1101 to 440.11102, with respect to the mobile home. When a

security interest in a mobile home is perfected, it has priority

over the rights of a lien creditor, as defined in section 9102 of

the uniform commercial code, 1962 PA 174, MCL 440.9102.

     (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.