Mich. Comp. Laws § 700.3809: Secured claims.

Sec. 3809.

A personal representative shall pay a secured claim on the basis of the amount allowed if the creditor surrenders the security. Otherwise, the personal representative shall pay on the basis of 1 of the following:

If the creditor exhausts the security before receiving payment, upon the amount of the claim allowed less the fair value of the security.

If the creditor does not have the right to exhaust the security or has not done so, upon the amount of the claim allowed less the value of the security determined by converting it into money according to the terms of the agreement under which the security was delivered to the creditor or by the creditor and personal representative by agreement, arbitration, compromise, or litigation.