Michigan § 440.2809 - Power to accelerate payment or performance or require collateral; good faith.
Full text of Michigan Michigan Compiled Laws § 440.2809 — Power to accelerate payment or performance or require collateral; good faith., with citation guidance and answers to common questions.
§ 440.2809. Power to accelerate payment or performance or require collateral; good faith.
A term providing that 1 party or his or her successor in interest may accelerate payment or performance or require collateral or additional collateral "at will" or when he or she deems himself or herself insecure or in words of similar import must be construed to mean that he or she has power to do so only if he or she in good faith believes that the prospect of payment or performance is impaired.
With respect to a consumer lease, the burden of establishing good faith under subsection (1) is on the party who exercised the power; otherwise, the burden of establishing lack of good faith is on the party against whom the power has been exercised.
Source: official Michigan text · Last verified 2026-08-27
Frequently Asked Questions About Michigan § 440.2809
What does Michigan Compiled Laws § 440.2809 cover?
Section 440.2809 ("Power to accelerate payment or performance or require collateral; good faith.") is part of the Michigan Compiled Laws, the codified statutory law of Michigan. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Michigan § 440.2809?
A common citation format is "Michigan Compiled Laws § 440.2809" (Michigan). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Michigan law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Michigan official source linked on this page or consult a licensed Michigan attorney.
How does Michigan § 440.2809 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Michigan can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Michigan.