Michigan Collections Manager License Practice Test

What is the time frame within which a secured party may request records of all holders regarding a notice of disposition?

1. Not later than 20 days but before 30 days

2. Not later than 10 days but before 15 days

3. Not later than 15 days but before 20 days

4. Not later than 30 days but before 60 days

The correct answer is: Not later than 20 days but before 30 days

The timeframe specified for a secured party to request records from all holders regarding a notice of disposition is critical for ensuring that the process follows applicable legal guidelines. According to the relevant laws, a secured party must make their request for these records within a specified period that balances the interests of both the secured party and the holders. Choosing the first option aligns with the legal framework that stipulates the secured party should not wait beyond 20 days after a notice of disposition has been issued, while also ensuring that the request is made before 30 days have passed. This timeframe allows for a timely response from the holders, facilitating the necessary due diligence while also providing a reasonable window for compliance. The time limit ensures efficient communication among parties involved in the secured transaction and helps protect the interests of all stakeholders by allowing adequate time for record keeping and responses without unnecessary delay. Other timeframes, such as 10 to 15 days or 15 to 20 days, do not adequately support this process, as they may not provide sufficient time for holders to prepare and respond to requests, ultimately hindering the collection process. The maximum of 30 to 60 days also extends beyond what is necessary, potentially complicating communications and obstructing prompt action, thus diminishing the secured party