Detached Garage existing wiring, will it meet code?

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jbradley2093

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Location
Mid-Michigan
Occupation
Real Estate Investor
I am rehabbing a 75 year old house. At some point more recently (than 75 years) a detached garage was built and a single 12/2 UF wire was directly buried in the ground and running from the panel inside the house directly a disconnect in the garage and then to the outlets and light in the garage, there is no sub-panel. This is the only part of the entire electrical system I had intended to leave alone. My only intended modification was to install a 20a GFCI breaker at the panel. Does this configuration meet existing code?

Also, the UF wire comes out of the ground at the garage (its buried about 2 feet deep it appears) and is unprotected as extends from the ground and up about 8 inches up the wall before going into the garage. I assume I need to protect this portion in conduit on the outside of the garage?
 
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