In 2018, Michigan adopted the Uniform Commercial Real Estate Receivership Act (the “Act”), which only applied to receiverships over commercial real estate. In October 2020, Michigan enacted an amendment to the Act. The amendment changed the name of the Act to the “Receivership Act” and makes the Act applicable to all operating businesses in Michigan and to commercial and industrial loans with no real estate collateral. The amendment became effective October 15, 2020. Below is a summary of the key changes to the Act.
A copy of the amendment with track changes is available here. The amendment ultimately expands the application of the Act and provides for a more structured appointment process. For more information, please contact your Foley relationship partner or the authors listed below.
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