554.1062 Collection of rent proceeds; use of funds.
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554.1062 Collection of rent proceeds; use of funds.
Sec. 12.
Unless otherwise agreed, an assignee that collects rents under this act or collects upon a judgment in an action under section 14(4) shall apply the sums collected in the following order:
(a)To the assignee's reasonable expenses of enforcing its assignment of rents, including, to the extent provided for by agreement and not prohibited by law of this state other than this act, reasonable attorney fees and costs incurred by the assignee.
(b)To reimbursement of any expenses incurred by the assignee to protect or maintain the real property subject to the assignment.
(c)To payment of the secured obligation.
(d)To payment of any obligation secured by a subordinate security interest or other lien on the rents if, before distribution of the proceeds, the assignor and assignee receive a notification from the holder of the interest or lien demanding payment of the proceeds.
(e)To the assignor.
History: 2022, Act 115 , Eff. Sept. 22, 2022