reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.105 - Bond to Accompany First License Application; Bond Applicable to Principal Place of Business; Form; Penal Sum; Execution; Condition; Action on Bond; Filing New Bond or Renewal Certificate.

492.105 Bond to accompany first license application; bond applicable to principal place of business; form; penal sum; execution; condition; action on bond; filing new bond or renewal certificate.
Sec. 5.
(a) Except as provided in subdivision (b), a bond, in the form prescribed by the administrator, in the penal sum of $20,000.00 shall accompany the first application by a person for license as a sales finance company and shall apply only to the principal place of business of the licensee. A bond, in the form prescribed by the administrator, in the penal sum of $10,000.00 shall accompany each application by a licensee for an additional location to transact business as a sales finance company.
(b) Each bond required under subdivision (a) shall be in the penal sum of $5,000.00 if the applicant is licensed under the mortgage brokers, lenders, and servicers licensing act, Act No. 173 of the Public Acts of 1987, being sections 445.1651 to 445.1683 of the Michigan Compiled Laws, Act No. 125 of the Public Acts of 1981, being sections 493.51 to 493.81 of the Michigan Compiled Laws, or the regulatory loan act of 1963, Act No. 21 of the Public Acts of 1939, being sections 493.1 to 493.26 of the Michigan Compiled Laws.
(c) The bond required under subdivision (a) shall be executed by a surety company authorized by the laws of this state to transact business within this state. A bond accompanying an application for license as a sales finance company, filed by a financial institution located within this state, may be executed by a financial institution on its own behalf, instead of a bond executed by a surety company. The bond shall be executed to the state of Michigan and shall be for the use of the state and for any person or persons. The condition of the bond shall be that the licensee will comply with and abide by all the provisions of this act, and all the rules and regulations of the administrator lawfully issued, and that the licensee will pay to the state, to the administrator or to any person or persons, any and all money that may become due to the state, to the administrator or to any person or persons from the licensee under the provisions of this act. A person who is aggrieved by the misconduct of a licensee and who has recovered a judgment against a licensee, and whose judgment is not satisfied within 30 days after it becomes final, may maintain an action upon the bond of the licensee in any court having jurisdiction of the amount claimed. Service of process for such an action may be served anywhere within this state.
(d) A new bond or renewal certificate shall accompany every application for renewal license and shall be filed annually at least 15 days before July 1.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951 ;-- Am. 1988, Act 242, Eff. Aug. 1, 1988
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.107 - License Certificate; Issuance; Posting; License Nontransferable and Nonassignable; Change in Business Location; Notice; Amendment of License Certificate; Fee; Operating More Than 1 Place of Business.

492.107 License certificate; issuance; posting; license nontransferable and nonassignable; change in business location; notice; amendment of license certificate; fee; operating more than 1 place of business.
Sec. 7.
(a) Upon approving a license application, the administrator shall issue to the applicant a license certificate showing the name of the person authorized to do business under the license and the business address of the licensee. Upon issuance to a licensee, a license certificate shall be posted in a conspicuous place in the place of business of the licensee in full view of the public at all times.
(b) A license shall not be transferable or assignable.
(c) A licensee may change his or her place of business to another location within the same municipality for which the license certificate was issued. A licensee desiring to change the address of his or her place of business shall give prior written notice to the administrator and shall return the license certificate to the administrator for amendment. The administrator shall amend the license certificate to show the new address and the date of the change, which shall then be the authorized address of the licensee. A licensee shall pay a fee of $10.00 to amend a license certificate.
(d) Only 1 place of business may be operated under the same license. A licensee may operate more than 1 place of business by filing an application on the prescribed form for each additional place of business and complying with the bond and license fee provisions of this act. For an installment seller only, if every place of business is conducted in 1 city under 1 name and all business records are continuously kept in 1 place, only 1 license shall be required for all places of business conducted in that city.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951 ;-- Am. 1988, Act 242, Eff. Aug. 1, 1988
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.108 - License; Application, Rejection, Grounds, Notice; Retention of Fee.

492.108 License; application, rejection, grounds, notice; retention of fee.
Sec. 8.
(a) The administrator may reject any application for license or any application for renewal of a license if he is not satisfied that the financial responsibility and the general fitness of the applicant and of the owners, partners or members thereof, if the applicant be a partnership or association, and of the officers and directors, if the applicant be a corporation, are such as to warrant the belief that the business for which application for license is filed will be operated in accordance with the provisions of this act.
(b) Whenever the administrator rejects an application for license he shall mail a notice of such action to the applicant and the applicant may, within 30 days of the date of such notice, appeal from such action to the circuit court in the manner provided for in section 9, subsection (d) of this act.
(c) Whenever the administrator rejects an application for license, he shall retain the license fee which accompanied the application, to defray costs of investigation.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.109 - License; Revocation or Suspension; Grounds; Appeal.

492.109 License; revocation or suspension; grounds; appeal.
Sec. 9.
(a) The administrator, upon 30 days written notice to the licensee, forwarded by registered mail to the place of business of such licensee, as shown in the application for license or as amended on the license certificate in case of change of address subsequent to issuance of the license certificate, may revoke or suspend any license if he finds that:
1. The licensee has made any material misstatement in the application for license, or that
2. The licensee has violated any provisions of this act, or that
3. The licensee refuses or has refused to permit the administrator or his designated representative to make examinations authorized by this act, or that
4. The licensee in the case of a sales finance company has failed to maintain in effect the bond required under the provisions of this act, or that
5. The licensee has failed to maintain satisfactory records required by this act, or that
6. The licensee has falsified any records required by this act to be maintained in connection with the business contemplated by this act, or that
7. The licensee has after proper notice failed to file any report with the administrator within the time stipulated in this act, or that
8. The licensee has failed to pay the fine required by this act for failure to file reports to the administrator within the time stipulated, or that
9. The licensee has defrauded any retail buyer to the buyer's damage or wilfully failed to perform any written agreement with any retail buyer, or that
10. Any fact or condition exists or is discovered which, if it had existed or had been discovered at the time of filing of the application for such license, would have warranted the administrator in refusing to issue such license.
(b) The administrator may revoke or suspend only the particular license with respect to which grounds for revocation may occur or exist, but if he finds that grounds for revocation are of general application to all places of business or to more than 1 place of business operated by a licensee, he may revoke all of the licenses issued to such licensee or those licenses to which grounds for revocation apply, as the case may be.
(c) Whenever a license has been revoked, the administrator shall not issue another license to the licensee pursuant to the provisions of this act until the expiration of at least 1 year from the effective date of revocation of said license.
(d) Appeals may be taken from the action of the administrator in accordance with procedure prescribed in section 30 of Act No. 319 of the Public Acts of 1969, being section 487.330 of the Compiled Laws of 1948.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951 ;-- Am. 1970, Act 114, Imd. Eff. July 23, 1970
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.110 - Investigation and Examination of Records; Access to Place of Business; Required Witness Attendance; Subpoena; Forms, Rules and Regulations.

492.110 Investigation and examination of records; access to place of business; required witness attendance; subpoena; forms, rules and regulations.
Sec. 10.
(a) The administrator is authorized and empowered to investigate and examine at any time during regular business hours any and all books, accounts, papers, records, documents and files, to the extent that such investigation and examination pertain to matters regulated under the provisions of this act, of any licensee and of any person who shall be engaged in business contemplated by this act. For this purpose the administrator shall have free access to the offices and places of business and any and all books, accounts, papers, records, documents and files of all such persons. A person who is not licensed under this act shall be presumed to be engaged in business contemplated by this act, if he, as principal, agent or broker advertises or solicits business for which a license is required by the provisions of this act, and the administrator and any person designated by him for that purpose is, in such case, hereby empowered to examine the books, accounts, papers, records, documents, files, safes and vaults of such persons for the purpose of discovering violations of this act.
(b) The administrator is empowered to require the attendance and testimony of witnesses and the production of any books, accounts, papers, records, documents and files relating to such business which the administrator has authority by this act to investigate, and for this purpose the administrator or his duly authorized representative may sign subpoenas, administer oaths and affirmations, examine witnesses and receive evidence. In case of disobedience of any subpoena or the contumacy of any witness appearing before the administrator, the administrator may invoke the aid of the circuit court of Ingham county, or any circuit court of the state, and such court shall thereupon issue an order requiring the person subpoenaed to obey the subpoena, or to give evidence, or to produce books, accounts, papers, records, documents and files relative to the matter in question. Any failure to obey such order of the court may be punished by such court as a contempt thereof.
(c) The administrator is hereby authorized and empowered to prescribe the various blank forms to be used by licensees in making reports, and to make rules and regulations relating to the enforcement of this act. A copy of every rule and regulation shall be mailed by the administrator to all licensees under this act at their respective licensed places of business at least 10 days before the effective date thereof.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.111 - Books, Accounts and Records; Maintenance.

492.111 Books, accounts and records; maintenance.
Sec. 11.
(a) Every licensee shall maintain, at the place of business designated in the license certificate, such books, accounts and records of the business conducted under the license issued for such place of business as will enable the administrator to determine whether the business of the licensee contemplated by this act is being operated in accordance with the provisions of this act.
(b) A licensee, operating 1 or more licensed places of business in this state, may maintain the general control records of all such offices at any 1 of such offices, or at any other office maintained by such licensee, upon the filing of a written request with the administrator designating therein the office at which such control records are maintained and upon approval of such request by the administrator.
(c) All books, accounts and records of licensee shall be maintained in the English language.
(d) All books, accounts and records of licensees, including any cards used in a card system, shall be preserved and available for examination by the administrator for at least 2 years after making the final entry therein.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.112 - Installment Sale Contract; Contents; Signatures; Buyer's Copy; Notice; Form; Delivery Acknowledgment; Payments; Applicability.

492.112 Installment sale contract; contents; signatures; buyer's copy; notice; form; delivery acknowledgment; payments; applicability.
Sec. 12.
(a) An installment sale contract shall be in writing, and shall contain all of the agreements between the buyer and the seller relating to the installment sale of the motor vehicle sold, and shall be signed by both the buyer and the seller.
(b) An installment sale contract shall be completed as to all essential provisions prior to the signing of the contract by the buyer and contain such other information as the administrator may require.
(c) An exact copy of the installment sale contract shall be furnished by the seller to the buyer without charge at the time the buyer signs the contract. The buyer's copy of the contract shall contain the signature of the seller identical with the signature on the original contract.
(d) An installment sale contract shall contain the following notice printed prominently and in the form indicated in 12-point type or larger directly above the space provided in the contract form for the signature of the buyer:
"Notice to buyer. Do not sign this contract in blank. You are entitled to 1 true copy of the contract you sign without charge. Keep it to protect your legal rights."
(e) The seller shall obtain from the buyer a written acknowledgment of the delivery of the copy of the contract. The acknowledgment shall be printed in 12-point type or larger and, if attached to the contract, it shall be printed below the buyer's signature to the contract and independently signed.
(f) An installment sale contract shall provide for weekly, semi-monthly, or monthly payments of the time balance in substantially equal periods and amounts. This subdivision does not apply to installment sale contracts made between an installment seller and an installment buyer who is an employee of the installment seller. This subdivision shall not be construed to prohibit installment sales contracts that extend the time for making installment payments for a period of not to exceed 3 months. This subdivision does not preclude the exceptional installment sale contract provided for in section 22 of this act.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951 ;-- Am. 1954, Act 132, Imd. Eff. Apr. 23, 1954 ;-- Am. 1994, Act 2, Imd. Eff. Feb. 17, 1994
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.113a - Installment Sale Transaction; Certain Payments by Seller on Behalf of Buyer.

492.113a Installment sale transaction; certain payments by seller on behalf of buyer.
Sec. 13a.
(1) A seller in an installment sale transaction may pay on behalf of the buyer and agree to finance in the installment sale contract all or part of the balance of any indebtedness secured by a motor vehicle that the seller takes in trade in the installment sale transaction or all or any part of the balance owed under a lease of a motor vehicle that is terminated in connection with the installment sale transaction.
(2) If subsection (1) applies in an installment sale transaction, then the other necessary or incidental costs included in the installment sale contract under section 13(2)(e) shall include the amount the seller agreed to finance under subsection (1).
History:
Add. 2005, Act 319, Imd. Eff. Dec. 27, 2005
Compiler's Notes:
Enacting section 1 of Act 319 of 2005 provides:"Enacting section 1. It is the intent of the legislature that this section be construed as declaring the law as it exists before this section is enacted and not as modifying it."
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.114 - Installment Sale Contract; Condition of Signing; Acceleration Clause; Right of Repossession; Prohibited Provisions.

492.114 Installment sale contract; condition of signing; acceleration clause; right of repossession; prohibited provisions.
Sec. 14.
(a) An installment sale contract shall not be signed by a party to the contract unless it contains all of the information and statements required by this act.
(b) An installment sale contract shall not contain an acceleration clause under which any part or all of the time balance represented by payments, not yet matured, may be declared immediately payable because the seller or holder deems itself to be insecure.
(c) An installment sale contract shall not contain a provision authorizing a person acting on behalf of the seller or holder to enter upon premises of the buyer unlawfully or to commit a breach of the peace in the repossession of the motor vehicle or collateral security. A right of repossession of a motor vehicle provided in an installment sale contract shall be exercised only in the manner provided in part 6 of article 9 of the uniform commercial code, 1962 PA 174, MCL 440.9601 to 440.9628, concerning taking possession of and disposing of collateral.
(d) An installment sale contract shall not contain a provision by which the buyer waives a right of action against the seller, holder, or other person acting on behalf of the holder for an illegal act committed in the collection of the payments under the contract or in the repossession of the motor vehicle or collateral security.
(e) An installment sale contract shall not contain a provision by which the buyer executes a power of attorney appointing the seller, the holder, or the agent of the licensee as the buyer's agent in collection of the payments under the contract or in repossession of the motor vehicle sold or collateral security.
(f) An installment sale contract shall not contain a provision relieving the holder, or other assignee, from liability for legal remedies which the buyer has against the seller under the contract or under a separate instrument executed in connection with the contract.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951 ;-- Am. 1978, Act 149, Eff. Jan. 1, 1979 ;-- Am. 2000, Act 361, Eff. July 1, 2001
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.114a - Evidence of Obligation; Holder Subject to Claims and Defenses of Buyer; Limitation on Buyer's Recovery; Mandatory Provision in Installment Sale Contract; Sales to Which Section Applicable; Action to Collect Debt; Designation of Disinterested Third Party to Receive Payments; Amount and Distribution of Payments.

492.114a Evidence of obligation; holder subject to claims and defenses of buyer; limitation on buyer's recovery; mandatory provision in installment sale contract; sales to which section applicable; action to collect debt; designation of disinterested third party to receive payments; amount and distribution of payments.
Sec. 14a.
(a) A person shall not take a negotiable instrument, other than a currently dated check or draft, as evidence of the obligation of the buyer in a retail sale of a motor vehicle.
(b) A holder of an installment sale contract is subject to all the claims and defenses of the buyer arising out of the installment transaction, but the buyer's recovery shall not exceed the amount paid to the holder thereunder.
(c) An installment sale contract entered into under this act shall contain the following provision in at least 10-point boldface type:
Notice
Any holder of this consumer credit contract is subject to all claims and defenses which the debtor could assert against the seller of goods or services obtained pursuant hereto or with the proceeds hereof. Recovery hereunder by the debtor shall not exceed amounts paid by the debtor hereunder.
(d) This section applies only to sales made pursuant to an installment sale contract.
(e) In an action by the holder to collect a debt from the buyer, the court, after notice to the buyer and a hearing, may designate a disinterested third party to receive payments from the buyer. If the court finds that the buyer will not be unreasonably burdened nor deprived of adequate transportation by making the payments, an amount up to but not greater than the amount of each time balance payment due shall be paid to the disinterested third party as it becomes due during the period of litigation. At the conclusion of the litigation these payments shall be distributed pursuant to the judgment of the court.
History:
Add. 1978, Act 149, Eff. Jan. 1, 1979 ;-- Am. 1980, Act 77, Imd. Eff. Apr. 3, 1980
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.115 - Installment Sale Contract; Sale, Transfer, Assignment; Notice to Buyer; Exception; Assignment Contracts.

492.115 Installment sale contract; sale, transfer, assignment; notice to buyer; exception; assignment contracts.
Sec. 15.
(a) Whenever an installment sale contract is lawfully sold, transferred or assigned to a person who is licensed as a sales finance company, pursuant to the provisions of this act, such new holder shall furnish to the buyer in such contract a written notice of such sale, transfer or assignment, excepting when assignment is made only to secure a bona fide commercial loan or pursuant to a bulk sale of installment sale contracts. Such notices shall set forth the name and address of the new holder and shall notify the buyer of the name and address of the person authorized to receive future payments on such contract. If such notice has not been given, any payment or tender of payment made to and any service of notice on the last known holder by the buyer shall be binding upon any subsequent holder. No installment sales contract shall be sold to any person doing business in this state who is not licensed under the provisions of this act.
(b) The provisions of this section shall not apply to an assignment of an aggregation of installment sale contracts, which is executed by a seller or sales finance company in connection with a bulk sale or as collateral security for a bona fide commercial loan, obtained at lawful rates of interest from a person regularly engaged in the business of lending money on the security of such assigned collateral, and under which, in the absence of default or other bona fide breach of the loan contract, ownership of the assigned contracts remains vested in the assignor and collection of payments on such assigned contracts is made by the assignor: And provided, That such assignment and loan contracts are not for the purpose of evading or circumventing the provisions of this act.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.116a - Unexpired Insurance Premiums; Crediting.

492.116a Unexpired insurance premiums; crediting.
Sec. 16a.
If unexpired insurance premiums received by the seller or holder resulting from the cancellation of insurance which was originally placed by the buyer's expense cannot be used in procuring comparable insurance as in section 16, subsection (g), such unexpired insurance premiums shall be credited to the last maturing installments under the contract.
History:
Add. 1954, Act 132, Imd. Eff. Apr. 23, 1954
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.117 - Installment Sale Contract; Costs; Fees.

492.117 Installment sale contract; costs; fees.
Sec. 17.
(a) In addition to the cost of insurance premiums and travel emergency benefits authorized in the preceding section of this act, the seller of a motor vehicle under an installment sale contract may require the buyer to pay certain other costs incurred in the sale of a motor vehicle under such contract as follows:
1. Fees, payable to the state of Michigan, for filing a lien or encumbrances on the certificate of title to a motor vehicle sold under an installment sale contract or collateral security thereto.
2. Fees, payable to a public official, for filing or recording and satisfying or releasing the installment sale contract or instruments securing the buyer's obligation.
3. Fees for notarization required in connection with the filing and recording or satisfying and releasing a mortgage, judgment lien or encumbrance.
(b) The seller of a motor vehicle under an installment sale contract may also contract with the buyer to pay, on behalf of the buyer, such other costs incidental to the sale of a motor vehicle and contracted for voluntarily by the buyer as follows:
1. Fees in amounts established by and paid to the state of Michigan for titling and registration of the motor vehicle and issuance or transfer of registration plates.
2. If the buyer of a motor vehicle elects to title or register the motor vehicle electronically, fees payable to any third party authorized by the secretary of state and to the seller for electronic titling and registration of the motor vehicle.
(c) The foregoing costs may be charged, contracted for, collected or received by the seller from the buyer independently of the installment sale contract, or the seller may extend credit to the buyer for the amount of such costs and include such amount in the principal amount financed under the installment sale contract.
(d) Such other costs paid or payable by the buyer shall not exceed the amount which the seller expends or intends to expend therefor. Any such costs which the seller has collected from the buyer, or which have been included in the buyer's obligation under the installment sale contract which are not disbursed by the seller, as contemplated, shall be immediately refunded or credited to the buyer.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951 ;-- Am. 2006, Act 302, Imd. Eff. July 20, 2006
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.118 - Finance Charge on Installment Sale Contract; Maximum Rate; Computation.

492.118 Finance charge on installment sale contract; maximum rate; computation.
Sec. 18.
(1) A seller licensed under this act may charge the buyer a finance charge on any installment sale contract covering the retail sale of a motor vehicle in this state. The finance charge shall not exceed the rate permitted by the credit reform act, 1995 PA 162, MCL 445.1851 to 445.1864.
(2) The seller shall compute the finance charge on the principal amount financed as determined under section 13(2)(f).
(3) The seller shall compute the finance charge at the annual rates permitted by subsection (1) on installment sale contracts that are payable by installment payments, extending for a period of 1 year. On installment sale contracts providing for installment payments extending for a period that is less than or greater than 1 year, the seller shall compute the finance charge proportionately. If an installment sale contract provides for payment other than in equal successive weekly, semimonthly, or monthly installments, the finance charge may be at a rate that will provide the same annual percentage rate as is permitted on monthly payment contracts considering the schedule of payments in the contract. The seller shall disclose the annual percentage rate of the installment sales contract in accordance with disclosure requirements of the truth in lending act, title I of the consumer credit protection act, Public Law 90-321, 15 U.S.C. 1601 to 1608, 1610 to 1613, 1615, 1631 to 1635, 1637 to 1648, and 1661 to 1667e, and the regulations promulgated under the truth in lending act.
(4) The seller may compute the finance charge on the basis of a full month for a fractional month period in excess of 10 days.
(5) A seller may charge a minimum finance charge of $15.00 on an installment sale contract in which the finance charge, when computed at the rates indicated, results in a total charge of less than $15.00.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951 ;-- Am. 1974, Act 329, Eff. Apr. 1, 1975 ;-- Am. 1980, Act 79, Imd. Eff. Apr. 7, 1980 ;-- Am. 1981, Act 56, Imd. Eff. June 1, 1981 ;-- Am. 1981, Act 165, Imd. Eff. Dec. 2, 1981 ;-- Am. 1982, Act 320, Imd. Eff. Dec. 2, 1982 ;-- Am. 1983, Act 246, Imd. Eff. Dec. 1, 1983 ;-- Am. 1995, Act 166, Eff. Mar. 28, 1996 ;-- Am. 2002, Act 699, Imd. Eff. Dec. 30, 2002
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.119 - Installment Sale Contract; Extension; Refinance Charges; Maximum Rate; Cash Loans.

492.119 Installment sale contract; extension; refinance charges; maximum rate; cash loans.
Sec. 19.
(a) The holder of an installment sale contract may extend the scheduled due date, defer a payment or payments, or renew the unpaid time balance of the contract.
(b) The holder may contract for, receive, and collect a refinance charge for the extension, deferment, or renewal. The refinance charge shall not exceed the amount ascertained under the rates allowed by section 18(a).
(c) If 1 or more installment payments are extended or deferred, computing the refinance charge on the amount of the installment payment or payments or part of a payment that is refinanced, for the period of time for which each payment or part of a payment is extended or deferred, shall not exceed rates provided for in section 18(a).
The refinance charges may be computed on the basis of a full month for any fractional month period in excess of 10 days.
(d) If the unpaid balance of the contract is refinanced or renewed, a refinance charge may be assessed on the amount obtained by adding to the unpaid time balance of the contract the insurance cost and other costs incidental to refinancing and the unpaid default charges that may be accrued, and by deducting any rebate that may be due to the buyer for prepayment incidental to refinancing, at the rate of the finance charge provided for in section 18(a), but otherwise subject to the provisions of this act governing computation of the original finance charge. The provisions of this act governing minimum finance charges and minimum prepayment rebate do not apply in calculating refinance charges on the contract renewed under this method of computation.
(e) The holder of an installment sale contract shall not include in any contract for refinancing the contract any cash loan to the buyer, nor any credit extended to the buyer incidental to the purchase of goods or services. A loan under this section does not include, nor does this act prohibit, a rearrangement of payments under the installment sale contract by a refinance transaction involving a restoration of certain installment payments made under the contract, but the refinance charge on the amount restored may not be more than that specified in section 18(a). The holder of the contract may embody in the refinance contract the cost of accessories, equipment, and parts for the motor vehicle sold under the contract, and the cost of repairs and services to the motor vehicle including finance charges on the contract.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951 ;-- Am. 1957, Act 216, Eff. Sept. 27, 1957 ;-- Am. 1995, Act 166, Eff. Mar. 28, 1996
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.120 - Installment Sale Contract; Default Charge; Maximum Rate; Computation; Collection.

492.120 Installment sale contract; default charge; maximum rate; computation; collection.
Sec. 20.
A default charge may be collected on each installment payment of an installment sale contract, including a contract subject to section 41, that is not paid on or before the due date of the payment. The default charge shall not exceed the rate permitted in the credit reform act on the amount of each payment in arrears. The default charge may be computed on the basis of a full calendar month for any fractional month period in excess of 10 days. Each default charges may be collected, when earned, during the term of the contract, or may be accumulated and collected at final maturity or at the time of final payment under the contract. The default charge shall not be collected on any payment in default because of an acceleration provision in the contract.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951 ;-- Am. 1993, Act 107, Imd. Eff. July 16, 1993 ;-- Am. 1995, Act 166, Eff. Mar. 28, 1996
Compiler's Notes:
At the beginning of the fourth sentence, “Each default charges may...” evidently should read “Each default charge may... .”
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.121 - Installment Sale Contract; Prepayment of Unpaid Time Balance; Rebate of Unearned Finance Charge.

492.121 Installment sale contract; prepayment of unpaid time balance; rebate of unearned finance charge.
Sec. 21.
(1) The buyer, notwithstanding the provisions of any installment sale contract, may prepay at any time all or a part of the unpaid time balance under an installment sale contract.
(2) Except as provided in section 41, when all of the time balance is liquidated before maturity by prepayment, refinancing, or termination by surrender or repossession and resale of the motor vehicle, the holder of the installment sale contract shall rebate to the buyer immediately the unearned portion of the finance charge. Rebate may be made in cash or credited to the amount due on the obligation of the buyer.
(3) The unearned portion of the finance charge to be rebated to the buyer shall be rebated by the actuarial method. The holder is not required to rebate a portion of the unearned finance charge that results in a net minimum finance charge on the contract less than $15.00. The holder is not required to rebate an unearned finance charge when the amount due, computed as set forth in this section, is less than $1.00.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951 ;-- Am. 1957, Act 216, Eff. Sept. 27, 1957 ;-- Am. 1978, Act 98, Imd. Eff. Apr. 5, 1978 ;-- Am. 1995, Act 166, Eff. Mar. 28, 1996
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.122 - Installment Sale Contract; Payments.

492.122 Installment sale contract; payments.
Sec. 22.
An installment sale contract may provide for a series of weekly, semi-monthly or monthly payments in substantially equal periods and amounts, followed by a single larger payment of the unpaid time balance, in which event the installment buyer shall have the right to an option, at the time such larger payment shall become due, to make such payment or to enter into a second contract, which contract shall conform to all the provisions of this act except that the refinance charge provided for in such second contract shall not exceed the finance charge rate provided for in the first contract.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.122a - Truth in Lending Act; Effect of Compliance.

492.122a Truth in lending act; effect of compliance.
Sec. 22a.
Compliance with the requirements of the truth in lending act, title I of Public Law 90-321, 15 U.S.C. 1601 to 1608, 1610 to 1613, 1615, 1631 to 1635, 1637 to 1638, 1640 to 1647, and 1661 to 1667e is compliance with the disclosure provisions of section 13 and of section 2 of Act No. 305 of the Public Acts of 1939, being section 566.302 of the Michigan Compiled Laws.
History:
Add. 1969, Act 35, Imd. Eff. July 10, 1969 ;-- Am. 1993, Act 107, Imd. Eff. July 16, 1993
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.123-492.127 - Repealed. 1962, Act 174, Eff. Jan. 1, 1964.

492.123-492.127 Repealed. 1962, Act 174, Eff. Jan. 1, 1964.
Compiler's Notes:
The repealed sections pertained to the regulation of repossessions, redemptions, resales and deficiency judgments, and the rights, of parties with respect thereto.
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.128 - Installment Sale Contract; Buyer Furnished Statement of Account, Contents; Fee for Additional Statement.

492.128 Installment sale contract; buyer furnished statement of account, contents; fee for additional statement.
Sec. 28.
(a) At any time after execution of an installment sale contract and within 1 year after termination of such contract, the holder of such contract shall furnish the buyer, upon request, with a complete and detailed statement of account showing:
1. All amounts paid by the buyer on account of the obligation, dates of payment and the allocation of such payments to reduction of the time balance, refinance charges, default charges, court costs, attorney's fees, expenses of retaking, repairing, storing, or otherwise.
2. All amounts credited to the buyer as rebates for prepayment and unexpired premiums on insurance cancelled.
3. The amount of the installment payments, accrued charges and expenses incurred, if any, which are due and payable.
4. The number and amount of installment payments to become due and payable, if any, and the due dates thereof.
(b) The buyer shall be furnished with 1 such statement of account without charge during the term of the contract or within 1 year after termination, and the holder may require payment of a fee of 50 cents for any additional statements.
(c) The holder shall furnish the buyer, upon request and upon payment of a fee of 50 cents, with a duplicate copy of the installment sale contract to replace the buyer's copy of such contract which is required to be furnished to the buyer without charge at the time of execution of the contract.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.129 - Installment Sale Contract; Receipt, Contents; Payment by Mail.

492.129 Installment sale contract; receipt, contents; payment by mail.
Sec. 29.
(a) Whenever payment is made on account of any installment sale contract, the person receiving such payment shall, at the time of receiving such payment, furnish to the buyer or to the person making the payment on behalf of the buyer, a complete written receipt therefor, if requested. A receipt must be given if payment is made in cash.
(b) Such receipt shall show the date of payment, the amount of the payment, and shall identify the obligation to which such payment is applicable.
(c) When issued for payments made at any office of the holder or mailed to such office, which payments are applied to reduction of the time balance, such receipt shall, if requested by the buyer, also set forth the unpaid time balance remaining due after crediting such payment. If such payment includes default charges authorized by this act, the amount of such default charges shall be set forth on the receipt independently of the payment applied to reduction of the time balance.
(d) When the buyer elects to make such payments by mail, the holder may require the buyer to supply a self-addressed stamped envelope as a condition for mailing such receipt to him, if he has been previously notified of such condition.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.130 - Installment Sale Contract; Payment in Full, Release, Discharge, Instruments Delivered to Buyer.

492.130 Installment sale contract; payment in full, release, discharge, instruments delivered to buyer.
Sec. 30.
(a) Upon payment in full of the time balance and other amounts lawfully due under an installment sale contract, the holder shall, unless the buyer is otherwise indebted to the holder and has secured such debt by lien upon the motor vehicle:
1. Return to the buyer the original of all instruments evidencing indebtedness or constituting security under an installment sale contract, which were signed by the buyer or his sureties or guarantors in conjunction with such contract, excepting such instruments as are filed or recorded with a public official and retained in the files of such official, and
2. Release all security interest in the motor vehicle or in collateral security to the obligation of the buyer under such contract, and
3. Deliver to the buyer all documents of title obtained from him.
(b) When the final payment on an installment sale contract is made in cash, money order or equivalent tender, by the buyer or his authorized representative, at the office of the holder, a legal discharge of this encumbrance, shall be delivered at the time of such tender of payment, if demanded by the buyer; otherwise delivery may be made at a later date in person or by mail as may be arranged between buyer and holder. All other instruments referred to in this section shall be delivered or mailed to the buyer within 25 days of the date of final payment.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.131 - Installment Sale Contract; Limitation on Charges; Charges Prohibited; Equity Transfer.

492.131 Installment sale contract; limitation on charges; charges prohibited; equity transfer.
Sec. 31.
(a) A licensee under this act shall not charge, contract for, collect, or receive from the buyer, directly or indirectly, any further or other amount for costs, charges, examination, appraisal, service, brokerage, commission, expense, interest, discount, fees, fines, penalties, or other thing of value in connection with the retail sale of a motor vehicle under an installment sale contract in excess of the cost of insurance premiums, other costs, the finance charges, refinance charges, default charges, recording and satisfaction fees, court costs, attorney's fees, and expenses of retaking, repairing, and storing a repossessed motor vehicle which are authorized by this act.
(b) A licensee under this act shall not collect any charge in connection with a contemplated sale of a motor vehicle under an installment sale contract if the contract is not consummated. This subsection does not affect the legal status of a deposit paid by a prospective buyer to a seller as a binder on the contemplated purchase of a motor vehicle.
(c) An insurance company, agent, or broker shall not pay or cause to be paid, directly or indirectly, to any installment seller, nor shall any installment seller receive from any insurance company, agent, or broker, any portion of an insurance premium involved in the retail installment sale of a motor vehicle other than for the benefit of the installment buyer, and all payments shall be held by the installment seller in trust for the benefit of the installment buyer and shall be paid to the installment buyer within 30 days, unless used in procuring comparable insurance or credited to matured unpaid installments under the contract as provided in section 16(f).
(d) Whenever in an installment sale contract under this act the seller or any subsequent holder has charged, contracted for, collected, or received from the buyer prohibited costs or charges in connection with the contract, all the costs and charges in connection with the contract, other than for insurance, shall be void and unenforceable and any amounts paid by the buyer for such costs and charges, other than insurance, shall be applied on the principal of the contract.
(e) If a motor vehicle is covered by an installment sale contract, the buyer shall not transfer equity in that vehicle to another person without the written consent of the holder of the sale contract. The holder of the sale contract may charge a transfer fee of $25.00.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951 ;-- Am. 1951, Act 171, Imd. Eff. June 8, 1951 ;-- Am. 1955, Act 102, Imd. Eff. June 2, 1955 ;-- Am. 1995, Act 166, Eff. Mar. 28, 1996
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.132 - Installment Sale Contract; Waiver.

492.132 Installment sale contract; waiver.
Sec. 32.
No act, agreement or statement of any buyer in any installment sale contract shall constitute a valid waiver of any provision of this act intended by the legislature for the benefit or protection of retail installment buyers of motor vehicles.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951
2023 Michigan Compiled Laws › Chapter 492 - Installment Sales of Motor Vehicles › Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141) › Section 492.133 - Installment Sale Contract; Prior Contracts.

492.133 Installment sale contract; prior contracts.
Sec. 33.
The provisions of this act shall not apply to or affect the validity of any contract otherwise within the purview of this act which is made prior to the effective date of the respective provisions of this act governing such contracts.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951