The bill amends the Uniform Commercial Code, specifically section 9201, to clarify the effectiveness of security agreements and their applicability against purchasers and creditors. It specifies that a security agreement is effective according to the terms agreed upon by the parties involved. Additionally, it outlines that transactions under this article are subject to various applicable laws that may establish different rules for consumers, including the regulatory loan act, the motor vehicle sales finance act, and the Michigan consumer protection act, among others.

The bill also includes several deletions and insertions to update the legal language, such as changing "its" to "the" in reference to the terms of the security agreement and updating the references to specific laws and acts. For instance, it replaces the 1963 regulatory loan act with the 1939 version and adds new references to the special tools lien act and other statutes. Furthermore, it clarifies that in case of any conflict between this article and the specified laws, the latter will take precedence, and it does not validate any agreements that violate these laws. The enactment of this bill is contingent upon the passage of Senate Bill No. 739.

Statutes affected:
Senate Introduced Bill: 440.9201