HOUSE BILL No. 6693

 

November 19, 2008, Introduced by Reps. Brandenburg, Sheen, Pastor, Agema, Calley, Moss, Hoogendyk, Horn, Acciavatti and Garfield and referred to the Committee on Commerce.

 

     A bill to amend 1981 PA 155, entitled

 

"An act to provide for ownership rights in dies, molds, and forms

for use in the fabrication of plastic parts under certain

conditions and to establish a lien on certain dies, molds, and

forms,"

 

by amending sections 9, 10a, and 10c (MCL 445.619, 445.620a, and

 

445.620c), as added by 2002 PA 17, and by adding section 9a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 9. (1) A moldbuilder shall permanently record on every

 

die, mold, or form that the moldbuilder fabricates, repairs, or

 

modifies the moldbuilder's name, street address, city, and state.

 

     (1) (2) A moldbuilder shall file a financing statement in

 

accordance with the requirements of section 9502 of the uniform

 

commercial code, 1962 PA 174, MCL 440.9502.

 

     (2) (3) A moldbuilder has a lien on any die, mold, or form

 

identified pursuant to subsection (1) that the moldbuilder


 

fabricates, repairs, or modifies. The amount of the lien is the

 

amount that a customer or molder owes the moldbuilder for the

 

fabrication, repair, or modification of the die, mold, or form. The

 

information that the moldbuilder is required to record on the die,

 

mold, or form under subsection (1) and the financing statement

 

required under subsection (2) shall constitute (1) constitutes

 

actual and constructive notice of the moldbuilder's lien on the

 

die, mold, or form.

 

     (3) (4) The A moldbuilder's lien created under this act

 

attaches when actual or constructive notice is received the

 

financing statement is filed under subsection (1). The moldbuilder

 

retains the lien that attaches under this section even if the

 

moldbuilder is not in physical possession of the die, mold, or form

 

for which the lien is claimed.

 

     (4) (5) The A lien created under this act remains valid until

 

the first of the following events takes place:

 

     (a) The moldbuilder is paid the amount owed by the customer or

 

molder.

 

     (b) The customer receives a verified statement from the molder

 

that the molder has paid the amount for which the lien is claimed.

 

     (c) The financing statement is terminated.

 

     (5) (6) The priority of a lien created under this act on the

 

same die, mold, or form shall be determined by the time the lien

 

attaches. The first lien to attach shall have has priority over

 

liens that attach subsequent to after the first lien.

 

     Sec. 9a. (1) A provision of a contract that waives a

 

moldbuilder's right or an obligation of a person established by


 

sections 9 to 10c is void and unenforceable as against public

 

policy.

 

     (2) A provision of a contract that requires the application of

 

the law of another state rather than sections 9 to 10c is void and

 

unenforceable as against public policy.

 

     Sec. 10a. Subject to section 10b, if the moldbuilder has not

 

been paid the amount claimed in the notice required under section

 

10 within 90 45 days after the notice required under section 10 has

 

been received by the customer and the molder, the moldbuilder has a

 

right to immediate possession of the die, mold, or form and may

 

enforce the right to immediate possession of the die, mold, or form

 

by judgment, foreclosure, or any available judicial procedure,

 

including a motion allowed under the court rules. The moldbuilder

 

may do 1 or more both of the following:

 

     (a) Take immediate possession of the mold, die, or form. The

 

moldbuilder may take immediate possession without judicial process

 

if this can be done without breach of the peace.

 

     (b) Sell the die, mold, or form in a public auction.

 

     Sec. 10c. (1) If the proceeds of the a sale under section 10a

 

are greater than the amount of the lien, the proceeds shall first

 

be paid to the moldbuilder in the amount necessary to satisfy the

 

lien and any attorney fees, court costs, and expenses awarded under

 

subsection (3). All proceeds in excess of the lien amount paid to

 

the moldbuilder shall be paid to the customer.

 

     (2) A sale shall not be made or possession shall not be

 

obtained under section 10a if it would be in violation of any right

 

of a customer or molder under federal patent, bankruptcy, or


 

copyright law.

 

     (3) If a moldbuilder prevails in an action to enforce a

 

perfected lien created under section 9, the court shall award the

 

moldbuilder reasonable attorney fees, court costs, and expenses

 

related to the enforcement of the lien and sale.