Uniform Assignment of Rents Legislation Proposed
Legislation introduced in October in the Michigan House of Representatives would provide for a uniform act covering assignment of rents. House Bill 5086, sponsored by Rep. Brandt Iden (R-Kalamazoo), would create the “Michigan Uniform Assignment of Rents Act.” The purpose of the legislation is to create one act providing for the creation, perfection, and enforcement of security interests in rents, while at the same time repealing other sections of law currently covering this. The basis for this legislation comes from the Uniform Law Commission (ULC), which in 2005 released a model version for proposed adoption by every state in the U.S. The ULC is an organization made up of practicing lawyers, judges, legislators and law professors, all of whom are appointed by state governments. ULC seeks to draft model legislation for certain areas of critical state law in an effort to create uniformity and save states from the cost of preparing legislation themselves. The bill has been referred to the House Judiciary Committee for action.