Section 570.559 - Sale of special tool at public auction; notice; information; notice nondeliverable; dispute. - Michigan Statutes

SPECIAL TOOLS LIEN ACT (EXCERPT)
Act 481 of 2002

570.559 Sale of special tool at public auction; notice; information; notice nondeliverable; dispute.

Sec. 19.

(1) Before an end user may sell the special tool, the end user shall notify, by registered mail, return receipt requested, the customer and any person whose security interest is perfected by filing. The notice shall include the following information:

(a) The end user's intention to sell the special tool 60 days after the customer's receipt of the notice.

(b) A description of the special tool to be sold.

(c) The time and place of the sale.

(d) An itemized statement for the amount due.

(e) A statement that the product produced by the special tool complies with the quality and quantity ordered.

(2) If there is not a return of the receipt of the mailing or if the postal service returns the notice as being nondeliverable, the end user shall publish notice of the end user's intention to sell the special tool in a newspaper of general circulation in the place where the special tool is being held for sale by the end user and in the place of the customer's last known address. The notice shall include a description of the special tool and the name of the customer.

(3) If a customer disagrees with the notice described in subsection (1), the customer shall notify the end user in writing by registered mail, return receipt requested, that the product produced by the special tool did not meet the quality or quantity ordered. An end user who receives this notice shall not sell the special tool until the dispute is resolved.

History: 2002, Act 481, Imd. Eff. June 27, 2002