2017 Michigan Compiled Laws
Chapter 554 - Real and Personal Property
Act 16 of 2018 UNIFORM COMMERCIAL REAL ESTATE RECEIVERSHIP ACT (554.1011.new - 554.1040.new)
Section 554.1018.new Bond; alternative security.
***** 554.1018.new THIS NEW SECTION IS EFFECTIVE MAY 7, 2018 *****
554.1018.new Bond; alternative security.Sec. 8.
(1) Except as otherwise provided in subsection (2), a receiver shall post with the court a bond that meets all of the following requirements:
(a) The bond is conditioned on the faithful discharge of the receiver's duties.
(b) The bond has 1 or more sureties approved by the court.
(c) The bond is in an amount the court specifies.
(d) The bond is effective as of the date of the receiver's appointment.
(2) The court may approve the posting by a receiver with the court of alternative security, such as a letter of credit or deposit of funds. The receiver may not use receivership property as alternative security. Interest that accrues on deposited funds must be paid to the receiver on the receiver's discharge.
(3) The court may authorize a receiver to act before the receiver posts the bond or alternative security required by this section.
(4) A claim against a receiver's bond or alternative security must be made not later than 1 year after the date the receiver is discharged.
History: 2018, Act 16, Eff. May 7, 2018
