reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.413 - Business of Debt Management as Financial Planning Service Requiring License; Exception.

451.413 Business of debt management as financial planning service requiring license; exception.
Sec. 3.
(1) Except as provided in subsection (2), a person engaged in the business of debt management is rendering a financial planning service and must obtain a license under this act.
(2) Subsection (1) does not apply to the following when engaged in the regular course of their respective businesses and professions:
(a) An attorney at law, if providing debt management advice incidental to his or her law practice.
(b) A certified public accountant, if providing debt management advice incidental to his or her accounting practice.
(c) A bank, fiduciary, savings and loan institution, or credit union duly authorized and admitted to transact business in this state and performing credit and financial adjusting service in the regular course of its principal business.
(d) A title insurer or abstract company, while doing an escrow business.
(e) An employee or agent of a licensee, acting solely in the capacity of agent for the licensee.
(f) A judicial officer or person acting under court order.
History:
1975, Act 148, Eff. Mar. 31, 1976 ;-- Am. 2000, Act 255, Imd. Eff. June 29, 2000
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.414 - License Required; Contract Made by Unlicensed Person Void; Persons Eligible for Exemption.

451.414 License required; contract made by unlicensed person void; persons eligible for exemption.
Sec. 4.
(1) A person located within or outside of the boundaries of this state shall not engage in the business of debt management without first obtaining a license under this act. A contract to provide debt management made by a person without a license is null and void.
(2) The department may grant a person that provides debt management services and receives compensation primarily from governmental organizations, governmentally sponsored organizations, charitable trusts, or foundations that have tax-exempt status under section 501(c) of the internal revenue code of 1986, 26 USC 501, an exemption from any provision of this act if the person demonstrates that the person has safeguards in the handling of debtor funds and the department finds that the exemption is in the public interest.
History:
1975, Act 148, Eff. Mar. 31, 1976 ;-- Am. 2000, Act 255, Imd. Eff. June 29, 2000 ;-- Am. 2014, Act 362, Eff. Mar. 16, 2015
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.417 - Applicability of Examination Provisions.

451.417 Applicability of examination provisions.
Sec. 7.
Except as provided in this act, the examination provisions of this act shall not apply to the existing officers, directors, partners, or individual owners of currently licensed debt management businesses unless any of those persons cease to be engaged in the debt management business with their currently licensed firm. To reenter the business at a subsequent time, a person shall satisfy the examination provisions of this act.
History:
1975, Act 148, Eff. Mar. 31, 1976
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.418 - License Renewal; Application; Fee; Financial Statements; Failure to Pay Fee or Penalty.

451.418 License renewal; application; fee; financial statements; failure to pay fee or penalty.
Sec. 8.
(1) Before December 1 of each year, a licensee shall file an application with the department for renewal of its license. The application shall be on the form prescribed by the department. The licensee shall include with the application a renewal fee of $50.00 for each office and a surety bond in the same manner as an original application. The application shall cover each branch office that is under the ownership and control of the applying entity.
(2) A licensee shall file statements with an application for renewal of a license under this section. The director may require that the financial statements be audited or reviewed by an independent certified public accountant.
(3) If a debt management license renewal fee described in subsection (1) is not received by the department on or before December 31, the licensee is subject to a penalty of $25.00 for each day the fee is delinquent, or $1,000.00, whichever is less.
(4) If a licensee does not pay a fee or penalty that the licensee is required to pay under this act, or does not pay that fee or penalty within any time period established under this act for payment of that fee or penalty, the director may maintain an action against the delinquent licensee for the recovery of the fees or penalties together with interest and costs.
History:
1975, Act 148, Eff. Mar. 31, 1976 ;-- Am. 2000, Act 255, Imd. Eff. June 29, 2000 ;-- Am. 2014, Act 362, Eff. Mar. 16, 2015
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.419 - License; Grounds for Denial, Revocation, Suspension, or Postponement; Notice; Proceedings.

451.419 License; grounds for denial, revocation, suspension, or postponement; notice; proceedings.
Sec. 9.
(1) The director may deny, revoke, suspend, or postpone a license issued or applied for under this act for any of the following:
(a) Conviction of a felony or of a misdemeanor involving moral turpitude.
(b) Violating any of the provisions of this act or rules promulgated under this act, or any order or condition of license.
(c) Fraud or deceit in procuring the issuance of a license under this act.
(d) Indulging in dishonest or unethical conduct.
(e) Insolvency, either in the sense that liabilities of the licensee exceed its assets or if the licensee is unable to pay its debts as they mature, or filing in bankruptcy, receivership, or assignment for the benefit of creditors by a licensee or applicant for a license under this act.
(f) Failure to reasonably supervise agents or employees.
(2) Before the commencement of proceedings for suspension, revocation, annulment, withdrawal, recall, cancellation or amendment of a license, the department shall give notice, personally or by certified mail, to the licensee of facts or conduct which warrant the intended action. The licensee shall be given an opportunity to show compliance with the requirements of this act for retention of the license. If the department finds that the public health, safety, or welfare requires emergency action and incorporates this finding in its order, summary suspension of a license may be ordered effective on the date specified in the order or on service of a certified copy of the order on the licensee, whichever is later, and effective during the proceedings. The proceedings shall be promptly commenced and determined.
History:
1975, Act 148, Eff. Mar. 31, 1976
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.420 - Rules; Rights, Remedies, and Procedures.

451.420 Rules; rights, remedies, and procedures.
Sec. 10.
Act No. 306 of the Public Acts of 1969, as amended, being sections 24.201 to 24.315 of the Michigan Compiled Laws, shall wherever applicable herein, govern the rules promulgated and rights, remedies, and procedures respecting the administration of this act.
History:
1975, Act 148, Eff. Mar. 31, 1976
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.421 - License; Applicable Provisions.

451.421 License; applicable provisions.
Sec. 11.
All of the following apply to a license:
(a) The director shall prescribe the form and size of a license.
(b) A license shall show the name of the licensee and the address at which the business of debt management is to be conducted.
(c) A license shall show the date of expiration of the license as December 31, and show any other information prescribed by the director.
(d) While the license is in force, the licensee shall at all times conspicuously display the license in the outer office of the licensee or branch office of the licensee, if that office offers in-person services to consumers, and state on an internet website that is available to the public that the licensee is licensed in this state.
(e) A license is not transferable or assignable.
(f) A licensee shall surrender a license to the department within 5 business days after the date that the licensee either ceases to engage in the business of debt management or the date the license is revoked.
History:
1975, Act 148, Eff. Mar. 31, 1976 ;-- Am. 2000, Act 255, Imd. Eff. June 29, 2000 ;-- Am. 2014, Act 362, Eff. Mar. 16, 2015
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.422 - Budget Analysis.

451.422 Budget analysis.
Sec. 12.
(1) A licensee may enter into a contract or agreement to provide debt management services to a debtor only if the licensee has conducted a written and thorough budget analysis of the debtor and made a determination, based on the analysis of the information provided by the debtor or otherwise available to the licensee, that a debt management plan is a suitable solution for the debtor and that the debtor will be able to meet the payment obligations under the plan. If the licensee determines that a plan is suitable for a debtor whose current monthly expense and debt payments exceed the debtor's net income, the licensee must establish a written plan outlining how the debtor will meet the payment obligations under the plan before entering into a contract or agreement to provide debt management services to the debtor.
(2) A budget analysis described in subsection (1) shall contain all of the following information about the debtor:
(a) Name and address.
(b) Number of dependents.
(c) Amount of all employment compensation, payments from government programs, child support and alimony payments, and other income and the debtor's net monthly income. Except as provided in this subdivision, a debtor is only required to provide information to a licensee about the amount of his or her income and is not required to provide any information about the source of that income.
(d) Monthly home mortgage or rental payment, if any. If the home mortgage payment does not include an escrow for real estate taxes, the budget analysis shall contain an estimate of the annual amount of the real estate taxes on the property, if the amount is available from the debtor or public source.
(e) Type and amount of all of the debtor's obligations included in the debt management plan, including, but not limited to, a description of and amount owed for any outstanding garnishments and judgments, and the type and amount of the debtor's obligations that are known to the debtor and are not included in the debt management plan.
(f) Amount of household expenses, including, but not limited to, expenses for food, utilities, vehicles, insurance, and other living expenses.
(g) A list of the creditors to which payments will be made under the plan.
History:
1975, Act 148, Eff. Mar. 31, 1976 ;-- Am. 2000, Act 255, Imd. Eff. June 29, 2000 ;-- Am. 2014, Act 362, Eff. Mar. 16, 2015
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.423 - Initial Fee; Consent of Creditor; Presumption.

451.423 Initial fee; consent of creditor; presumption.
Sec. 13.
(1) When a licensee establishes a debt management plan for a debtor, the licensee may charge and receive an initial fee of $50.00.
(2) A licensee shall attempt to obtain consent to participate in a debt management plan from at least 51%, in number or dollar amount, of the debtor's creditors within 90 days after establishing the debt management plan. If the required consent is not actually received by the licensee, the licensee shall provide notice to the debtor of the lack of required consent and the debtor may, at its option, close the account. If the debtor decides to close the account, any unexpended funds shall be returned to the debtor or disbursed as directed by the debtor.
(3) For purposes of subsection (2), a licensee may seek the consent of a creditor to participate in a debt management plan by sending a notice of a debt management plan to the creditor by an appropriate means including by telephone, facsimile, electronic means, or first-class mail. If the creditor does not respond within 14 days after the notice is sent, the licensee may presume that the creditor has given consent. However, this subsection does not require that a licensee send notice of a debt management plan to all of a debtor's creditors.
(4) If a payment under the debt management plan is sent to the creditor, the licensee may presume acceptance of the payment and plan by the creditor 7 days after sending the payment. As an alternative to sending notice under subsection (3), a licensee may seek the consent of a creditor for purposes of subsection (2) by sending a payment to the creditor under the terms of the debt management plan.
History:
1975, Act 148, Eff. Mar. 31, 1976 ;-- Am. 2000, Act 255, Imd. Eff. June 29, 2000 ;-- Am. 2014, Act 362, Eff. Mar. 16, 2015
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.424 - Contract Between Licensee and Debtor; Requirements.

451.424 Contract between licensee and debtor; requirements.
Sec. 14.
(1) A contract between a licensee and debtor shall include all of the following:
(a) Each creditor to which payments will be made and the amount owed each creditor. A licensee may rely on records of the debtor and other information available to it to determine the amount owed to a creditor.
(b) The total amount of the licensee's charges.
(c) The beginning and termination dates of the contract.
(d) The principal amount and approximate interest charges of the debtor's obligations to be paid under the debt management plan.
(e) The name and address of the licensee and of the debtor.
(f) Any other provisions or disclosures that the director determines are necessary for the protection of the debtor and the proper conduct of business by a licensee.
(2) Unless otherwise approved by the department and except for an amount due for 1 or more monthly fees, a closeout fee, credit reports, or educational products or materials, a licensee shall distribute to the creditors of the debtor, at least monthly, all money received from a debtor or on behalf of a debtor unless otherwise directed by the debtor.
(3) By submitting a written request to the licensee, a debtor may add or remove 1 or more debt obligations from a contract at any time. If the licensee determines after preparing an updated budget analysis that the debtor can reasonably fulfill the requirements of the debt management plan, the licensee may amend the contract as requested by the debtor.
(4) If a debtor's contract with a licensee expires and 1 or more debt obligations included in that contract are not yet liquidated, the licensee may extend or enter into an additional contract with the debtor if the licensee determines that the debt management plan is suitable for the debtor.
History:
1975, Act 148, Eff. Mar. 31, 1976 ;-- Am. 2000, Act 255, Imd. Eff. June 29, 2000 ;-- Am. 2014, Act 362, Eff. Mar. 16, 2015
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.427 - Examination of Licensee.

451.427 Examination of licensee.
Sec. 17.
The department may examine, without notice, the condition and affairs of a licensee. In connection with an examination, the department may examine under oath a licensee and any director, officer, employee, customer, creditor, manager, member, partner, or stockholder of a licensee concerning the affairs and business of the licensee. The department shall ascertain whether the licensee transacts its business in the manner required under this act and the rules promulgated under this act. The licensee shall pay an examination fee, in an amount equal to the actual cost of the examination as determined by the department, and the department shall deposit that fee in the state treasury to the credit of the department. Failure to pay the examination fee within 30 days after receiving a demand for payment from the department shall automatically suspend the license of the licensee until the fee is paid.
History:
1975, Act 148, Eff. Mar. 31, 1976 ;-- Am. 2000, Act 255, Imd. Eff. June 29, 2000 ;-- Am. 2014, Act 362, Eff. Mar. 16, 2015
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.430 - Advertisement.

451.430 Advertisement.
Sec. 20.
(1) This act does not impose any liability, civil or criminal, on a person or publisher that is regularly engaged in the business of publishing a bona fide newspaper or operating a radio or television station and that, acting solely in the course of that business, publishes an advertisement in good faith and without knowledge that the advertisement or publication constitutes a violation of section 19(k), (l), or (m).
(2) A person shall not publish an advertisement concerning the offer of debt management services in this state after the department by order finds that the advertisement contains a statement that is false or misleading or omits to make any necessary statement in order to make the statements made, in light of the circumstances under which they were made, not misleading and notifies the person of that finding in writing. The department may give this notification summarily, without notice of hearing. At any time after the issuance of a notification under this section, the person that desires to use the advertisement may request in writing that the department rescind the order. If it receives a written request under this subsection, the department shall schedule a hearing on the matter to commence within 45 days unless the person that made the request consents to a later date. After the hearing the department shall determine whether to affirm and continue or to rescind the order.
History:
1975, Act 148, Eff. Mar. 31, 1976 ;-- Am. 2014, Act 362, Eff. Mar. 16, 2015
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.431 - Assignment of Wages.

451.431 Assignment of wages.
Sec. 21.
This act shall not be construed as prohibiting the assignment of wages by a debtor to a licensee, if the assignment is otherwise in accordance with the law of this state.
History:
1975, Act 148, Eff. Mar. 31, 1976
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.432 - Rules; Decisions, Orders, and Rulings; Electronic Filing.

451.432 Rules; decisions, orders, and rulings; electronic filing.
Sec. 22.
(1) The director may promulgate rules pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, make specific decisions, make orders and rulings that include demands and findings, and take other necessary action for the implementation and enforcement of this act.
(2) The director may in his or her discretion provide for electronic filing of any document filed with the director or department under this act.
History:
1975, Act 148, Eff. Mar. 31, 1976 ;-- Am. 2000, Act 255, Imd. Eff. June 29, 2000
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Admin Rule:
R 451.1221 et seq. of the Michigan Administrative Code.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.434 - Violations; Penalties; Jurisdiction; Remedies.

451.434 Violations; penalties; jurisdiction; remedies.
Sec. 24.
(1) A licensee who violates a provision of this act is guilty of a felony and shall be fined not more than $5,000.00, or imprisoned not more than 2 years, or both.
(2) A person who violates an injunction or a cease and desist order issued pursuant to this act shall be guilty of criminal contempt. For the purpose of this act the court issuing an injunction shall retain jurisdiction, and the cause shall be continued, and in those cases the attorney general acting in the name of the state may seek appropriate remedies.
History:
1975, Act 148, Eff. Mar. 31, 1976
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.435 - Statute of Limitations.

451.435 Statute of limitations.
Sec. 25.
An action brought pursuant to this act shall be commenced within 6 years after the cause of action accrues, except that chapter 58 of Act No. 236 of the Public Acts of 1961, as amended, being sections 600.5801 to 600.5869 of the Michigan Compiled Laws, shall apply wherever possible.
History:
1975, Act 148, Eff. Mar. 31, 1976
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.436 - Disposition of Fees.

451.436 Disposition of fees.
Sec. 26.
The fees collected under this act shall be paid promptly into the state treasury to the credit of the department.
History:
1975, Act 148, Eff. Mar. 31, 1976 ;-- Am. 2014, Act 362, Eff. Mar. 16, 2015
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 148 of 1975 - Debt Management Act (451.411 - 451.437) › Section 451.437 - Repeal of MCL 451.451 to 451.468.

451.437 Repeal of MCL 451.451 to 451.468.
Sec. 27.
Act No. 135 of the Public Acts of 1961, being sections 451.451 to 451.468 of the Compiled Laws of 1970, is repealed.
History:
1975, Act 148, Eff. Mar. 31, 1976
Compiler's Notes:
For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Repealed - Act 135 of 1961 - Debt Management Business (451.451 - 451.468)

DEBT MANAGEMENT BUSINESS
Act 135 of 1961
451.451-451.468 Repealed. 1975, Act 148, Eff. Mar. 31, 1976.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Repealed - Act 433 of 1996 - Security Registered in Beneficiary Form (451.471 - 451.481)

SECURITY REGISTERED IN BENEFICIARY FORM
Act 433 of 1996
451.471-451.481 Repealed. 1998, Act 386, Eff. Apr. 1, 2000.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Repealed - Act 265 of 1964 - Uniform Securities Act (451.501 - 451.818)

UNIFORM SECURITIES ACT
Act 265 of 1964
451.501-451.818 Repealed. 2008, Act 551, Eff. Oct. 1, 2009
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Repealed - Act 179 of 1976 - Take-Over Offers (451.901 - 451.917)

TAKE-OVER OFFERS
Act 179 of 1976
451.901-451.917 Repealed. 1988, Act 58, Eff. Apr. 1, 1988.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 87 of 2009 - Uniform Prudent Management of Institutional Funds Act (451.921 - 451.931) › Section 451.921 - Short Title.

451.921 Short title.
Sec. 1.
This act shall be known and may be cited as the "uniform prudent management of institutional funds act".
History:
2009, Act 87, Imd. Eff. Sept. 10, 2009
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 87 of 2009 - Uniform Prudent Management of Institutional Funds Act (451.921 - 451.931) › Section 451.922 - Definitions.

451.922 Definitions.
Sec. 2.
As used in this act:
(a) "Charitable purpose" means the relief of poverty, the advancement of education or religion, the promotion of health, the promotion of a governmental purpose, or any other purpose the achievement of which is beneficial to the community.
(b) "Endowment fund" means an institutional fund or part of an institutional fund that, under the terms of a gift instrument, is not wholly expendable by the institution on a current basis. Endowment fund does not include assets that an institution designates as an endowment fund for its own use.
(c) "Gift instrument" means a record or records, including an institutional solicitation, under which property is granted to, transferred to, or held by an institution as an institutional fund.
(d) "Institution" means any of the following:
(i) A person, other than an individual, organized and operated exclusively for charitable purposes.
(ii) A government or governmental subdivision, agency, or instrumentality, to the extent that it holds funds exclusively for a charitable purpose.
(iii) A trust that had both charitable and noncharitable interests, after all noncharitable interests have terminated.
(e) "Institutional fund" means a fund held by an institution exclusively for charitable purposes. Institutional fund does not include any of the following:
(i) Program-related assets.
(ii) A fund held for an institution by a trustee that is not an institution, unless the fund is held by the trustee as a component trust or fund of a community trust or foundation.
(iii) A fund in which a beneficiary that is not an institution has an interest, other than an interest that could arise on violation or failure of the purposes of the fund.
(f) "Person" means an individual, corporation, business trust, estate, trust, partnership, association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.
(g) "Program-related asset" means an asset held by an institution primarily to accomplish a charitable purpose of the institution and not primarily for investment.
(h) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
History:
2009, Act 87, Imd. Eff. Sept. 10, 2009
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 87 of 2009 - Uniform Prudent Management of Institutional Funds Act (451.921 - 451.931) › Section 451.924 - Endowment Fund Assets; Appropriation or Accumulation; Determination; Limitation; Designation.

451.924 Endowment fund assets; appropriation or accumulation; determination; limitation; designation.
Sec. 4.
(1) Subject to the intent of a donor expressed in the gift instrument, an institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration for which the endowment fund is established. Unless stated otherwise in the gift instrument, the assets in an endowment fund are donor-restricted assets until appropriated for expenditure by the institution. In making a determination to appropriate or accumulate, the institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, and shall consider, if relevant, all of the following factors:
(a) The duration and preservation of the endowment fund.
(b) The purposes of the institution and the endowment fund.
(c) General economic conditions.
(d) The possible effect of inflation or deflation.
(e) The expected total return from income and the appreciation of investments.
(f) Other resources of the institution.
(g) The investment policy of the institution.
(2) To limit the authority to appropriate for expenditure or accumulate under subsection (1), a gift instrument must specifically state the limitation.
(3) Terms in a gift instrument designating a gift as an endowment, or a direction or authorization in the gift instrument to use only "income", "interest", "dividends", "rents, issues, or profits", or "to preserve the principal intact", or words of similar import, do both of the following:
(a) Create an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purpose of the fund.
(b) Do not otherwise limit the authority to appropriate for expenditure or accumulate under subsection (1).
History:
2009, Act 87, Imd. Eff. Sept. 10, 2009
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 87 of 2009 - Uniform Prudent Management of Institutional Funds Act (451.921 - 451.931) › Section 451.925 - Management and Investment; Delegation to External Agent; Duty to Exercise Reasonable Care; Liability; Delegation to Committees, Officers, or Employees.

451.925 Management and investment; delegation to external agent; duty to exercise reasonable care; liability; delegation to committees, officers, or employees.
Sec. 5.
(1) Subject to any specific limitation set forth in a gift instrument or in law other than this act, an institution may delegate to an external agent the management and investment of an institutional fund to the extent that an institution could prudently delegate under the circumstances. An institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, in doing any of the following:
(a) Selecting an agent.
(b) Establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund.
(c) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation.
(2) In performing a delegated function, an agent owes a duty to the institution to exercise reasonable care to comply with the scope and terms of the delegation.
(3) An institution that complies with subsection (1) is not liable for the decisions or actions of an agent to which the function was delegated.
(4) By accepting delegation of a management or investment function from an institution that is subject to the laws of this state, an agent submits to the jurisdiction of the courts of this state in all proceedings arising from or related to the delegation or the performance of the delegated function.
(5) An institution may delegate management and investment functions to its committees, officers, or employees as authorized by law of this state other than this act.
History:
2009, Act 87, Imd. Eff. Sept. 10, 2009
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 87 of 2009 - Uniform Prudent Management of Institutional Funds Act (451.921 - 451.931) › Section 451.926 - Release or Modification of Restriction.

451.926 Release or modification of restriction.
Sec. 6.
(1) If the donor consents in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund. A donor may give prior consent to an institution for release or modification of a restriction or charitable purpose in a gift instrument that also includes a restriction or stated charitable purpose subject to this section. A release or modification shall not allow a fund to be used for a purpose other than a charitable purpose of the institution.
(2) A court, on application of an institution, may modify a restriction contained in a gift instrument regarding the management or investment of an institutional fund if the restriction has become impracticable or wasteful, if it impairs the management or investment of the fund, or if, because of circumstances not anticipated by the donor, a modification of a restriction will further the purposes of the fund. The institution shall notify the attorney general of the application, and the attorney general shall be given an opportunity to be heard. To the extent practicable, any modification shall be made in accordance with the donor's probable intention.
(3) If a particular charitable purpose or a restriction contained in a gift instrument on the use of an institutional fund becomes unlawful, impracticable, impossible to achieve, or wasteful, a court, upon application of an institution, may modify the purpose of the fund or the restriction on the use of the fund in a manner consistent with the charitable purposes expressed in the gift instrument. The institution shall notify the attorney general of the application, and the attorney general shall be given an opportunity to be heard.
(4) If an institution determines that a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund is unlawful, impracticable, impossible to achieve, or wasteful, the institution, 60 days after notification to the attorney general, may release or modify the restriction, in whole or in part, if all of the following apply:
(a) The institutional fund subject to the restriction has a total value of less than $25,000.00.
(b) More than 20 years have elapsed since the fund was established.
(c) The institution uses the property in a manner consistent with the charitable purposes expressed in the gift instrument.
(5) This section does not affect the right of a governing body of an institution to exercise the power to modify restrictions contained in a gift instrument as conferred by the institution's governing instruments or by a gift instrument.
History:
2009, Act 87, Imd. Eff. Sept. 10, 2009
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 87 of 2009 - Uniform Prudent Management of Institutional Funds Act (451.921 - 451.931) › Section 451.927 - Compliance With Act; Existing Facts and Circumstances.

451.927 Compliance with act; existing facts and circumstances.
Sec. 7.
Compliance with this act shall be determined in light of the facts and circumstances existing at the time a decision is made or action is taken and not by hindsight.
History:
2009, Act 87, Imd. Eff. Sept. 10, 2009
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 87 of 2009 - Uniform Prudent Management of Institutional Funds Act (451.921 - 451.931) › Section 451.928 - Applicability of Act.

451.928 Applicability of act.
Sec. 8.
This act applies to institutional funds existing on or established after the effective date of this act. As applied to institutional funds existing on the effective date of this act, this act governs only decisions made or actions taken on or after that date.
History:
2009, Act 87, Imd. Eff. Sept. 10, 2009
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 87 of 2009 - Uniform Prudent Management of Institutional Funds Act (451.921 - 451.931) › Section 451.929 - Electronic Signatures.

451.929 Electronic signatures.
Sec. 9.
This act modifies, limits, and supersedes the electronic signatures in the global and national commerce act, 15 USC 7001 to 7031, but does not modify, limit, or supersede 15 USC 7001(c) or authorize electronic delivery of any of the notices described in 15 USC 7003(b).
History:
2009, Act 87, Imd. Eff. Sept. 10, 2009
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 87 of 2009 - Uniform Prudent Management of Institutional Funds Act (451.921 - 451.931) › Section 451.930 - Uniformity of Law.

451.930 Uniformity of law.
Sec. 10.
In applying and construing this uniform act, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
History:
2009, Act 87, Imd. Eff. Sept. 10, 2009
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 87 of 2009 - Uniform Prudent Management of Institutional Funds Act (451.921 - 451.931) › Section 451.931 - Applicability; Scope.

451.931 Applicability; scope.
Sec. 11.
This act applies only to matters included within the meaning of the terms "institution", "institutional fund", and "person" as defined in this act. This act does not apply to or affect the validity, construction, interpretation, effect, administration, or management of any other trust, estate, or applicable governing instrument.
History:
2009, Act 87, Imd. Eff. Sept. 10, 2009
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Repealed - Act 157 of 1976 - Uniform Management of Institutional Funds Act (451.1201 - 451.1210)

UNIFORM MANAGEMENT OF INSTITUTIONAL FUNDS ACT
Act 157 of 1976
451.1201-451.1210 Repealed. 2009, Act 87, Imd. Eff. Sept. 10, 2009.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 551 of 2008 - Uniform Securities Act (2002) (451.2101 - 451.2703) › Article 1 - General Provisions (451.2101...451.2105) › Section 451.2101 - Short Title.

451.2101 Short title.
Sec. 101.
This act shall be known and may be cited as the "uniform securities act (2002)".
History:
2008, Act 551, Eff. Oct. 1, 2009
Compiler's Notes:
For transfer of securities division of office of finance and insurance regulation from office of finance and insurance regulation to department of licensing and regulatory affairs, see E.R.O. No. 2012-6, compiled at MCL 445.2034.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 551 of 2008 - Uniform Securities Act (2002) (451.2101 - 451.2703) › Article 1 - General Provisions (451.2101...451.2105) › Section 451.2102b - Definitions; N to R.

451.2102b Definitions; N to R.
Sec. 102b.
As used in this act, unless the context otherwise requires:
(a) "Nonissuer transaction" or "nonissuer distribution" means a transaction or distribution not directly or indirectly for the benefit of the issuer.
(b) "Offer to purchase" includes an attempt or offer to obtain, or solicitation of an offer to sell, a security or interest in a security for value. The term does not include a tender offer that is subject to section 14(d) of title I of the securities exchange act of 1934, 15 USC 78n.
(c) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, limited liability partnership, association, joint venture, or government; a governmental subdivision, agency, or instrumentality; a public corporation; or any other legal or commercial entity.
(d) "Place of business" of a broker-dealer, an investment adviser, or a federal covered investment adviser means any of the following:
(i) An office at which the broker-dealer, investment adviser, or federal covered investment adviser regularly provides brokerage or investment advice, or solicits, meets with, or otherwise communicates with customers or clients.
(ii) Any other location that is held out to the general public as a location at which the broker-dealer, investment adviser, or federal covered investment adviser provides brokerage or investment advice, or solicits, meets with, or otherwise communicates with customers or clients.
(e) "Predecessor act" means former 1964 PA 265.
(f) "Price amendment" means the amendment to a registration statement filed under the securities act of 1933 or, if an amendment is not filed, the prospectus or prospectus supplement filed under the securities act of 1933 that includes a statement of the offering price, underwriting and selling discounts or commissions, amount of proceeds, conversion rates, call prices, and other matters dependent upon the offering price.
(g) "Principal place of business" of a broker-dealer or an investment adviser means the executive office of the broker-dealer or investment adviser from which the officers, partners, or managers of the broker-dealer or investment adviser direct, control, and coordinate the activities of the broker-dealer or investment adviser.
(h) "Record," except in the phrases "of record," "official record," and "public record," means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
History:
2008, Act 551, Eff. Oct. 1, 2009
Compiler's Notes:
For transfer of securities division of office of finance and insurance regulation from office of finance and insurance regulation to department of licensing and regulatory affairs, see E.R.O. No. 2012-6, compiled at MCL 445.2034.
2023 Michigan Compiled Laws › Chapter 451 - Securities, Real Estate, and Debt Management › Act 551 of 2008 - Uniform Securities Act (2002) (451.2101 - 451.2703) › Article 1 - General Provisions (451.2101...451.2105) › Section 451.2103 - Additional Definitions.

451.2103 Additional definitions.
Sec. 103.
(1) Subject to subsection (2), as used in this act:
(a) "Commodity exchange act" means the commodity exchange act, 7 USC 1 to 27f.
(b) "Electronic signatures in global and national commerce act" means the electronic signatures in global and national commerce act, 15 USC 7001 to 7031.
(c) "Employee retirement income security act of 1974" means the employee retirement income security act of 1974, Public Law 93-406.
(d) "Internal revenue code" means the internal revenue code of 1986, 26 USC 1 to 9833.
(e) "Investment advisers act of 1940" means the investment advisers act of 1940, 15 USC 80b-1 to 80b-21.
(f) "Investment company act of 1940" means the investment company act of 1940, 15 USC 80a-1 to 80a-64.
(g) "National housing act" means the national housing act, 12 USC 1701 to 1750g.
(h) "Public utility holding company act of 1935" means the public utility holding company act of 1935, 15 USC 79 to 79z-6.
(i) "Securities act of 1933" means the securities act of 1933, 15 USC 77a to 77aa.
(j) "Securities exchange act of 1934" means the securities exchange act of 1934, 15 USC 78a to 78nn.
(k) "Securities investor protection act of 1970" means the securities investor protection act of 1970, 15 USC 78aaa to 78lll.
(l) "Securities litigation uniform standards act of 1998" means the securities litigation uniform standards act of 1998, Public Law 105-353, 112 Stat. 3227.
(m) "Small business investment act of 1958" means the small business investment act of 1958, Public Law 85-699.
(2) A reference in this act to a federal statute defined in subsection (1) includes that statute and the rules and regulations adopted under that statute. The administrator may, by rule or order, adopt an amendment or successor to a federal statute defined in subsection (1) or rules and regulations adopted under a federal statute defined in subsection (1), a federal statute that is similar to a federal statute defined in subsection (1), or a rule or regulation that is similar to a rule or regulation adopted under a federal statute defined in subsection (1).
History:
2008, Act 551, Eff. Oct. 1, 2009
Compiler's Notes:
For transfer of securities division of office of finance and insurance regulation from office of finance and insurance regulation to department of licensing and regulatory affairs, see E.R.O. No. 2012-6, compiled at MCL 445.2034.