June 22, 2001

To: County Register of Deeds, County Treasurers, County Clerks, County Administrators, Controllers, and Managers

From: Richard L. Baldermann, CPA, CGFM Administrator Local Audit and Finance Division

RE: New Fee Schedule under Public Act 348 of 2000

Public Act 348 of 2000 was signed into law by the Governor on December 27, 2000 and becomes effective July 1, 2001. Michigan Compiled Law Sections 440.9401 through 440.9409 of the Uniform Commercial Code (Article 9) was repealed and replaced by sections 440.9501 through 440.9527. The new law makes several changes related to the UCC Financing Statement Filing fees charged for different services that affect the register of deeds’ office.

The primary and principal method for perfecting a security interest under the new Uniform Commercial Code (Article 9) is to file a financing statement with the filing authority. The new system of filing is designed to create a more uniform system that is understandable and easier to use. Under the new uniform law, the central filing authority is the Secretary of State's Office. The only exception would be for fixture filings, which continue to be made (and searched) in the real estate records (register of deeds’ office).

The filing office is described in MCL 440.9501, which reads as follows:

(1) Except as otherwise provided in subsection (2), the office in which to file a financing statement to perfect the security interest or agricultural liens is one of the following:

(a) The office designated for filing or recording of a record of a mortgage on the related real property, if the collateral is as-extracted collateral or timber to be cut, or the financing statement is filed as a fixture filing and the collateral is goods that are or are to become fixtures.

(b) The Office of Secretary of State in all other cases, including a case in which the collateral is goods that are or are to become fixtures and the financing statement is not filed as fixture filing.

(3) Any financing statement filed under subsection (1)(a) with a register of deeds and any continuation, termination statement, amendment, or assignment relating to the financing statement and meeting the formal requisites of this part shall be recorded by the register of the deeds, notwithstanding the provisions for the witnessing and acknowledging instruments to be recorded in the real property records contained in section 47 of 1846 RS 65, MCL 565.47.

The format of the financing statements to be filed with the register of deeds has substantially changed. The new format of the financing statement is contained in MCL 440.9521. We suggest that section MCL 440.9521 be read carefully for the correct format of the financing statement.

Following is the schedule of the new fees applicable to different records mentioned in section MCL 440.9525. Please note that this numbered letter is only to identify the fees associated with the UCC financing statements related to the register of deeds’ office.

Please note that we are not attorneys, and are not rendering a legal opinion. We advise that you consult with the county prosecuting attorney or legal representation. This letter is our interpretation of what the act states in the above matter. You may also review the Michigan Department of State UCC web site, which has been updated with new UCC fees and form information.

Please call (517) 373-3227 or write our office if you have any questions.

Michigan Department of Treasury
Local Audit and Finance Division
P.O. Box 30728
Lansing, Michigan 48909-8228

Filings
Fee for filing and indexing a record (two (2) names or more) provided the record is a financing statement in a form contained in section 9521(1) and 9521(2)-----$10.00

If filing office is required to index more than two (2) names-----Additional fee of $10.00 for each name more than two

If record contains more than 100 pages-----Additional fee of $12.00

If the record is in form other than described in section 9521(1) and section 9521(2)-----Additional fee of $7.00

Searches
Fee for responding to a request for a search of records filed with a filing office concerning debtor, including issuance of a certificate describing each presently effective record filed-----$6.00

If the person requests a certificate mentioned above and the search discloses more than 100 presently effective records filed concerning the debtor-----Additional fee of $6.00

If the person requests an expediting of the regular search process (Secretary of State only)-----Additional fee of $25.00

If the person requests copies of presently effective records disclosed by search-----Additional fee of $2.00 per page