MI SB0551

Allows courts to order or restrain collection, enforcement, or disposition of collateral when a secured party fails to comply with article 9 of the Uniform Commercial Code.

Establishes minimum damages of $500 per violation for failures to comply with sections 9208, 9209, 9509, 9513, 9616, or section 9210 requests, in addition to actual damages recoverable.

For consumer goods, debtors or secondary obligors can recover at minimum the credit service charge paid plus 10% of the principal amount, or time-price differential plus 10% of the cash price, if a secured party fails to comply.

Shifts burden of proof to secured parties to establish compliance with article 9 procedures once a debtor or secondary obligor raises the issue in a deficiency action.

Limits deficiency liability to the difference between the secured obligation plus expenses and attorney fees versus either actual proceeds or the proceeds that would have resulted from compliant procedures, whichever is greater.