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 492.134 - Installment Sale Contract; Expiration, Surrender or Revocation of License.

492.134 Installment sale contract; expiration, surrender or revocation of license.
Sec. 34.
(a) The expiration, surrender or revocation of a license, issued pursuant to this act, shall not impair or affect the obligation of any motor vehicle installment sale contract entered into lawfully or lawfully acquired by a holder: Provided, however, That the holder of such contracts shall forfeit the right to charge, contract for, receive or collect refinance charges authorized by this act for renewal of a contract, if the license of such holder expired, was surrendered, or was revoked prior to the date of such renewal.
(b) A licensee whose license has expired, was surrendered or was revoked may thereafter sell, transfer or assign contracts entered into or acquired prior thereto to any licensed sales finance company or banking institution, and such sales finance company or banking institution acquiring such contracts may renew such contracts in accordance with the provisions of this act.
(c) A licensee whose license has expired, was surrendered or was revoked shall not thereafter enter into new contracts for the retail sale f motor vehicles under installment sale contracts, and shall not thereafter discount, purchase or otherwise acquire such contracts.
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 492.135 - Installment Sale Contract; Sales Outside State.

492.135 Installment sale contract; sales outside state.
Sec. 35.
Nothing in this act shall be construed to prevent the enforcement in the state of Michigan of an obligation arising from the sale of a motor vehicle made outside of the state of Michigan under an installment sale contract valid in such other state, entered into or executed by the buyer outside of the state of Michigan, whether or not such buyer was a resident of this state or the seller a licensee at the time they entered into such 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 492.136 - Businesses Not Affected or Impaired by Acts.

492.136 Businesses not affected or impaired by acts.
Sec. 36.
This act shall not affect or impair a business conducted lawfully under the regulatory loan act, 1939 PA 21, MCL 493.1 to 493.24, the banking code of 1999, 1999 PA 276, MCL 487.11101 to 487.15105, or the credit union act, 2003 PA 215, MCL 490.101 to 490.601.
History:
1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951 ;-- Am. 1970, Act 114, Imd. Eff. July 23, 1970 ;-- Am. 1977, Act 223, Imd. Eff. Nov. 23, 1977 ;-- Am. 2003, Act 221, Imd. Eff. Dec. 2, 2003 ;-- Am. 2012, Act 452, Eff. Dec. 31, 2012
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 492.137 - Violation of Act; Penalty.

492.137 Violation of act; penalty.
Sec. 37.
(a) Any person, partner, association, business corporation, banking institution, nonprofit corporation, common law trust, joint stock company or any other group of individuals, however organized, or any owner, partner, member, officer, director, trustee, employee, agent, broker or representative thereof who or which shall wilfully or intentionally engage in this state in business as installment seller or sales finance company as defined in this act without having obtained a license, as required under this act, shall be guilty of a misdemeanor, and upon conviction thereof shall be sentenced to pay a fine of not more than $5,000.00, or to suffer imprisonment of not more than 3 years, or both, at the discretion of the court.
(b) Any licensee conducting business under this act as an installment seller, sales finance company or any owner, partner, member, officer, director, trustee, employee, agent, broker or representative thereof who shall wilfully or intentionally violate any provision of this act, or shall direct or consent to such violation, shall be guilty of a misdemeanor, and upon conviction thereof shall be sentenced to pay a fine of not more than $500.00 for the first offense; and for each subsequent offense a like fine and/or suffer imprisonment not to exceed 1 year in the discretion of the court.
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 492.138 - Repealed. 1988, Act 242, Eff. Aug. 1, 1988.

492.138 Repealed. 1988, Act 242, Eff. Aug. 1, 1988.
Compiler's Notes:
The repealed section pertained to enforcement of act.
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 492.139, 492.140 - Repealed. 1964, Act 256, Eff. Aug. 28, 1964.

492.139, 492.140 Repealed. 1964, Act 256, Eff. Aug. 28, 1964.
Compiler's Notes:
The repealed sections transferred administration of repealed MCL 491.1 to 491.17 from state treasurer to state banking department and contained severability clause.
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 492.141 - Optional Method of Computing Finance Charge.

492.141 Optional method of computing finance charge.
Sec. 41.
Instead of a finance charge computed on the principal amount financed, the seller may charge from time to time a finance charge consisting of interest on the amount of the unpaid principal balance of the contract. In this event, the transaction is subject to this act as modified by the following provisions:
(a) The number and amount of installment payments required to be stated pursuant to section 13 may be estimated for purposes of this section assuming that each scheduled payment is made on the date it is due and in the scheduled amount.
(b) The holder of the contract has the option of deferring interest charges which accrue due to installment payments being received later than the periodic installment due date. The deferred interest charge shall be computed on the basis of additional interest charges accruing for late installment payments and appropriate interest reductions for installment payments made before the due date. On contracts providing for equal monthly installments, if the final installment is more than 105% of a previous installment as a result of the deferred interest charges, the installment buyer shall be given the option to pay the deferred interest charges not less than 25 days after the date the last installment payment is due.
(c) If the unpaid time balance is prepaid in full, together with all interest incurred to the date of prepayment, the balance of the original finance charge shall be canceled and the finance charge rebate provisions of section 21 do not apply.
History:
Add. 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 217 of 1969 - Insurance on Financed Motor Vehicles (492.151 - 492.151) › Section 492.151 - Installment Sale Contract; Prepayment of Time Balance Prior to Insurance Coverage Expiration; Notice to Insurer; Payment of Unearned Insurance Premiums.

492.151 Installment sale contract; prepayment of time balance prior to insurance coverage expiration; notice to insurer; payment of unearned insurance premiums.
Sec. 1.
When the seller or subsequent holder has placed, at the expense of the buyer, insurance on a motor vehicle sold under an installment sale contract and the buyer prepays the time balance under the contract prior to the expiration date of the insurance, the seller or subsequent holder shall give or forward to the insurer notice of such prepayment, and shall not thereafter be a party to said insurance contract, nor request its cancellation. After such prepayment, any unearned insurance premiums received by the seller or holder, resulting from cancellation of insurance which was originally placed at the buyer's expense, shall be promptly paid to the buyer.
History:
1969, Act 217, Eff. Mar. 20, 1970
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.1a - Repealed. 2001, Act 270, Imd. Eff. Jan. 11, 2002.

493.1a Repealed. 2001, Act 270, Imd. Eff. Jan. 11, 2002.
Compiler's Notes:
The repealed section pertained to short title.
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.2 - Business of Making Loans; License Required; Application for License; Oath; Form and Contents; Fees; Proof of Net Worth.

493.2 Business of making loans; license required; application for license; oath; form and contents; fees; proof of net worth.
Sec. 2.
(1) Except as otherwise provided under this act, a person shall not engage in the business of making loans of money, credit, goods, or things in action and charge, contract for, or receive on the loan a greater rate of interest, discount, or consideration than the lender would be permitted by law to charge if the lender were not a licensee under this act and without first obtaining a license from the commissioner, or by obtaining a license under the consumer financial services act, 1988 PA 161, MCL 487.2051 to 487.2072.
(2) Application for a license shall be in writing, under oath, and in the form prescribed by the commissioner, and contain the name and the address, both of the residence and place of business, of the applicant, if the applicant is a copartnership or association, of every member, and if a corporation, of each officer and director. The application shall also include the address where the business is to be conducted and all other relevant information as the commissioner may require. The applicant at the time of making the application shall pay to the commissioner an investigation and annual operating fee as provided by this act.
(3) An applicant shall prove, in form satisfactory to the commissioner, that the applicant has available net worth of at least $100,000.00 for the operation of the business at the location specified in the application.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- CL 1948, 493.2 ;-- Am. 1971, Act 168, Eff. Mar. 30, 1972 ;-- Am. 1991, Act 14, Eff. Oct. 1, 1991 ;-- Am. 1992, Act 71, Imd. Eff. June 2, 1992 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and 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 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.3 - Licenses; Bond of Applicant; Approval; Conditions.

493.3 Licenses; bond of applicant; approval; conditions.
Sec. 3.
The applicant, at the time of filing an application, shall also file when requested by the commissioner a bond in an amount to be approved by the commissioner, in which the applicant shall be the obligor. The surety company issuing the bond shall be qualified, able, and willing to write bonds required by this act. The bond shall run to the people of the state of Michigan and may be sued on by the state or any person who may have a cause of action against the obligor. The bond shall be conditioned that the obligor will comply with this act and all rules and regulations made under this act, and will pay to the state and to any person all money due or owing to the state or to the person from the obligor.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- Am. 1947, Act 130, Eff. Oct. 11, 1947 ;-- CL 1948, 493.3 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and 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 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.4 - Investigation; Findings; Issuance or Denial of License; Notice; Transcript of Decision and Findings.

493.4 Investigation; findings; issuance or denial of license; notice; transcript of decision and findings.
Sec. 4.
(1) Upon the filing of the application, the payment of the fees, and the approval of the bond, the commissioner shall investigate the applicant and if he or she finds that the financial responsibility, experience, character, and general fitness of the applicant are such as to command the confidence of the community and to warrant belief that the business will be operated lawfully, honestly, fairly, and efficiently within the purposes of this act and that the applicant has a net worth in the amounts required under section 2, the commissioner shall issue a license to the applicant to conduct business at the location or locations specified in the application. The license shall remain in effect until it is surrendered by the licensee or revoked or suspended as provided under this act.
(2) If the commissioner finds that the applicant fails to meet the requirements of this act, he or she shall not issue a license and shall notify the applicant of the denial and return to the applicant the bond and fee paid by the applicant, retaining the investigation fee to cover the costs of investigating the application.
(3) The commissioner shall approve or deny every application for license within 60 days from the date that the application was filed with the fees and the approved bond.
(4) If the application is denied, the commissioner shall within 20 days from the date of denial file with the office of financial and insurance services a written transcript of the decision and findings containing the evidence and the reasons supporting the denial and shall serve upon the applicant a copy of the filing.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- CL 1948, 493.4 ;-- Am. 1971, Act 168, Eff. Mar. 30, 1972 ;-- Am. 1991, Act 14, Eff. Oct. 1, 1991 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and 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 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.5 - Licenses; Contents; Posting; Transfer; Assignment.

493.5 Licenses; contents; posting; transfer; assignment.
Sec. 5.
(1) Except as otherwise provided under this section, the license shall state the address at which the principal office of the business is to be conducted and shall state fully the name of the licensee, and if the licensee is a co-partnership or association, the names of the members, and if a corporation, the date and place of its incorporation.
(2) The license shall be kept conspicuously posted in the places of business specified in the license.
(3) The license is not transferable or assignable without the prior approval of the commissioner.
(4) The sale, transfer, assignment, or conveyance of more than 25% of the outstanding voting stock of a licensee that is a corporation, or more than 25% of the interest in a licensee that is a partnership or other unincorporated legal entity, shall be considered to be a transfer of the license.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- CL 1948, 493.5 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and 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 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.6 - Net Worth; Additional Bond; Filing.

493.6 Net worth; additional bond; filing.
Sec. 6.
(1) Every licensee shall maintain at all times net worth in the amount required under section 2.
(2) If the commissioner determines at any time that any bond is insecure, exhausted, or otherwise of doubtful validity or collectability, the commissioner may require the licensee to obtain an additional bond in an amount of not more than $1,000.00. The licensee shall file the new bond within 10 days after the commissioner has issued written demand upon the licensee.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- CL 1948, 493.6 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and 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 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.7 - Changing Name or Place of Business; Procedure; Activities at More Than 1 Place of Business; Ceasing to Engage in Activities Subject to Act.

493.7 Changing name or place of business; procedure; activities at more than 1 place of business; ceasing to engage in activities subject to act.
Sec. 7.
(1) A licensee under this act may change its name or place of business shown on the license by giving prior written notice to the commissioner and returning the license to the commissioner. The commissioner shall amend the license certificate to show the new name or the new place of business and the date of the new certificate.
(2) A licensee may engage in activities for which a license is required at more than 1 place of business by providing not less than 30 days' written notice to the commissioner before opening each additional place of business. This subsection does not apply to any place of business listed in the licensee's approved application for licensure.
(3) A licensee that ceases engaging in business activities that are subject to this act at a place of business shall provide written notice to the commissioner within 30 days.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- CL 1948, 493.7 ;-- Am. 1971, Act 168, Eff. Mar. 30, 1972 ;-- Am. 1991, Act 14, Eff. Oct. 1, 1991 ;-- Am. 1992, Act 71, Imd. Eff. June 2, 1992 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and 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 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.8 - Annual Establishment of Fees Schedule; Bond; Action for Recovery of Fees or Penalties; Fees Nonrefundable; Report; Disposition and Use of Money Received.

493.8 Annual establishment of fees schedule; bond; action for recovery of fees or penalties; fees nonrefundable; report; disposition and use of money received.
Sec. 8.
(1) The commissioner shall annually establish the schedule of fees sufficient to pay the costs of administering this act. The fees are as follows:
(a) For the investigation of an applicant for a license, not less than $250.00 or more than $1,000.00, which is not refundable.
(b) For the issuance or annual renewal of a license, an annual operating fee based upon the volume and types of activities conducted by the licensee during the previous calendar year. The annual operating fee set by the commissioner under this subsection shall be based upon information in reports filed under section 11.
(c) For amending a license, not less than $50.00 or more than $100.00.
(2) At the time of paying the annual operating fee, each licensee shall file with the commissioner a bond as required by section 3.
(3) If any fees or penalties provided for in this act are not paid when required, the commissioner may maintain an action against the delinquent licensee for the recovery of the fees or penalties together with interest and costs.
(4) Except as otherwise provided by this act, the fees received under this act are not refundable.
(5) A licensee who fails to submit to the commissioner a report required under section 11 is subject to a penalty of $50.00 for each day the report is delinquent or $5,000.00, whichever is less.
(6) Money received under this act shall be paid into the state treasury to the credit of the office of financial and insurance services and shall be used for the operation of the office of financial and insurance services.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- CL 1948, 493.8 ;-- Am. 1971, Act 168, Eff. Mar. 30, 1972 ;-- Am. 1991, Act 14, Eff. Oct. 1, 1991 ;-- Am. 1992, Act 71, Imd. Eff. June 2, 1992 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and 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 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.9 - Revocation, Suspension, or Surrender of License; Reinstatement or Issuance of New License; Transcript of Order.

493.9 Revocation, suspension, or surrender of license; reinstatement or issuance of new license; transcript of order.
Sec. 9.
(1) The commissioner, upon 10 days' written notice to the licensee stating the contemplated action and the grounds for the action, and upon reasonable opportunity to be heard, may revoke any license if he or she finds any of the following:
(a) The licensee has failed, after 5 days' written notice of default, to pay the annual operating fee, to maintain the bond required under this act, or to comply with any demand, ruling, or requirement of the commissioner made under this act.
(b) The licensee either knowingly or without the exercise of due care has violated any provision of this act or any rule made by the commissioner under this act.
(c) Any fact or condition that exists which, if it had existed at the time of the original application for the license, would have warranted the commissioner in refusing originally to issue the license.
(2) If the commissioner finds that probable cause for revocation of any license exists and that the enforcement of the act requires immediate suspension of the license pending investigation, he or she may, upon 3 days' written notice and a hearing, suspend any license for a period not exceeding 30 days.
(3) A licensee may surrender its license by delivering to the commissioner written notice that it surrenders the license. The surrender does not affect the licensee's civil or criminal liability for acts committed before the surrender.
(4) A revocation or suspension or surrender of a license does not impair or affect the obligation of any preexisting lawful contract between the licensee and any borrower.
(5) The commissioner shall have authority to reinstate suspended licenses or to issue new licenses to a licensee whose license shall have been revoked if no fact or condition exists that clearly would have warranted the commissioner in refusing originally to issue the license.
(6) If the commissioner revokes or suspends a license, he or she shall file with the office of financial and insurance services a written transcript of the order containing the evidence and the reasons supporting the revocation or suspension, and serve upon the licensee a copy of the transcript.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- CL 1948, 493.9 ;-- Am. 1971, Act 168, Eff. Mar. 30, 1972 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and 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 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.9a - Cease and Desist Order; Grounds; Notice; Failure to Appear at Hearing; Findings; Effective Date and Duration of Order.

493.9a Cease and desist order; grounds; notice; failure to appear at hearing; findings; effective date and duration of order.
Sec. 9a.
(1) If in the opinion of the commissioner a licensee is, has, or is about to engage in a practice that poses a threat of financial loss or threat to the public welfare or is, has, or is about to violate a law or rule, the commissioner may serve a notice of intention to issue a cease and desist order as provided in subsection (2).
(2) A notice served under this section shall contain a statement of the facts constituting the alleged practice or violation and fix a time and place at which a hearing will be held to determine whether an order to cease and desist should be issued against the licensee.
(3) If the licensee fails to appear at the hearing by a duly authorized representative, the licensee shall have consented to the issuance of the cease and desist order.
(4) In the event of consent under subsection (3) or if, upon the record made at the hearing, the commissioner finds that the practice or violation specified in the notice has been established, the commissioner may serve upon the licensee an order to cease and desist from the practice or violation. The order may require the licensee and its officers, directors, members, partners, trustees, employees, agents, and control persons to cease and desist from the practice or violation and to take affirmative action to correct the conditions resulting from the practice or violation.
(5) Except as provided in subsection (6) or to the extent it is stayed, modified, terminated, or set aside by the commissioner or a court, a cease and desist order shall become effective on the date of service.
(6) A cease and desist order issued upon consent shall become effective at the time specified in the order and remain effective and enforceable as provided in the order.
History:
Add. 2002, Act 393, Imd. Eff. May 30, 2002
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.9b - Investigation or Examination by Commissioner; Complaint or Action; Suspension of License; Request for Hearing; Duration of Suspension.

493.9b Investigation or examination by commissioner; complaint or action; suspension of license; request for hearing; duration of suspension.
Sec. 9b.
(1) As provided in section 10, the commissioner may investigate or conduct an examination of any person and conduct hearings as the commissioner considers necessary to determine whether a licensee or any other person has violated this act, or whether a licensee has conducted business in a manner that would justify suspension or revocation of its license.
(2) Upon the filing of a complaint or the taking of action against a licensee under section 9c, the commissioner may issue and serve upon a licensee an order suspending that person's license. The order shall be supported by an affidavit from a person familiar with the facts set forth in the affidavit and shall contain information that an imminent threat of financial loss or threat to the public welfare exists.
(3) Upon service of the order under subsection (2), the licensee shall have 20 days to file with the commissioner a request for a hearing. The hearing shall be scheduled within 20 days of the receipt of a request filed under this subsection.
(4) A suspension of a license under this section shall continue until the commissioner finds that the threat of financial loss or threat to the public welfare no longer exists.
History:
Add. 2002, Act 393, Imd. Eff. May 30, 2002
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.9d - Hearing; Decision; Findings; Judicial Review; Stay.

493.9d Hearing; decision; findings; judicial review; stay.
Sec. 9d.
(1) A hearing under sections 9, 9a, and 9c shall be conducted under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. Within 30 days after the commissioner has notified the parties that the case has been submitted to him or her for final decision, the commissioner shall render a decision that shall include findings of fact supporting the decision and serve upon each party to the proceeding a copy of the decision and an order consistent with the decision.
(2) Except for a consent order, a party to the proceeding or a person affected by an order issued under sections 9, 9a, and 9c may obtain a judicial review of the order. A consent order may be reviewed as provided under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. Except for an order under judicial review, the commissioner may terminate or set aside any order. The commissioner may terminate or set aside an order under judicial review with the permission of the court.
(3) Unless ordered by the court, the commencement of proceedings for judicial review under subsection (2) does not stay the commissioner's order.
History:
Add. 2002, Act 393, Imd. Eff. May 30, 2002
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.9e - Enforcement of Order; Jurisdiction.

493.9e Enforcement of order; jurisdiction.
Sec. 9e.
The commissioner may apply to the circuit court of Ingham county for the enforcement of any outstanding order issued under section 9, 9a, 9b, or 9c.
History:
Add. 2002, Act 393, Imd. Eff. May 30, 2002
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.9f - Violation as Misdemeanor; Penalty.

493.9f Violation as misdemeanor; penalty.
Sec. 9f.
Any current or former executive officer, director, agent, or control person who violates a final order issued under section 9c is guilty of a misdemeanor punishable by a fine of not more than $5,000.00 or imprisonment for not more than 1 year, or both.
History:
Add. 2002, Act 393, Imd. Eff. May 30, 2002
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.9g - Violation of Order; Exceptions.

493.9g Violation of order; exceptions.
Sec. 9g.
A control person who is subject to an order issued under section 9c and who meets all of the following requirements is not in violation of the order:
(a) The control person shall not in any manner, directly or indirectly, participate in the control of a licensee after the date the order is issued.
(b) The control person shall within 6 months after the date the order is final transfer any interest the control person owns in a licensee to an unrelated third party.
History:
Add. 2002, Act 393, Imd. Eff. May 30, 2002
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.10 - Commissioner of State Banking Department; Authority to Investigate Business and Examine Records; Witnesses; Examination of Licensee; Construction of Section; Disposition of Fees.

493.10 Commissioner of state banking department; authority to investigate business and examine records; witnesses; examination of licensee; construction of section; disposition of fees.
Sec. 10.
(1) For the purpose of investigating violations of this act or securing information lawfully required under this act, the commissioner may at any time, either personally or by a designated person or persons, investigate the loans and business and examine the books, accounts, records, and files used with the loans and business of any licensee or any person engaged in the business described in section 2. The commissioner and his or her duly designated representatives shall have and be given free access to the offices and places of business, books, accounts, papers, records, files, safes, and vaults of all persons investigated under this section. The commissioner and persons duly designated by him or her have the authority to require the attendance of and to examine under oath all persons whose testimony the commissioner may require relative to the loans or business or to the subject matter of an examination, investigation, or hearing.
(2) The commissioner at any time may investigate the business activities of a licensee as the commissioner considers necessary, examine the books, accounts, records, and files used and maintained by any licensee, and require the licensee to furnish additional reports relating to the licensee's business. The commissioner shall examine the books, accounts, records, and files of a licensee at least once during every 5-year period.
(3) This act shall not be construed to prohibit the keeping of records by electronic data processing methods.
(4) All fees collected under this section shall be paid into the state treasury and credited to the office of financial and insurance services.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- CL 1948, 493.10 ;-- Am. 1991, Act 14, Eff. Oct. 1, 1991 ;-- Am. 1996, Act 184, Imd. Eff. May 3, 1996 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and 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 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.11 - Books, Accounts, and Records of Licensee; Preservation and Accessibility; Filing Financial Statement With Commissioner; Reports.

493.11 Books, accounts, and records of licensee; preservation and accessibility; filing financial statement with commissioner; reports.
Sec. 11.
(1) The licensee shall keep and use in the licensee's business the books, accounts, and records the commissioner may require in order to determine whether the licensee is complying with this act and with the rules promulgated by the commissioner under this act. The licensee shall preserve within this state and make accessible to the commissioner, the books, accounts, and records for at least 2 years after making the final entry on any loan recorded in the books, accounts, and records. Books and accounts may be kept at a location other than the licensee's principal place of business, provided that they are made available to the commissioner upon request and the licensee pays the actual and reasonable travel expenses if the examiner must travel out of state.
(2) The licensee shall file, annually on or before February 15 of each year, with the commissioner its financial statement in a uniform format prescribed by the commissioner, including information on earnings, for the prior calendar year.
(3) A licensee shall annually on or before a date established by the commissioner file with the commissioner a report, on a form provided by the commissioner, stating the licensee's volume and type of business activities for the immediately preceding calendar year. The commissioner shall provide at least 30 days' advance notice of the date each report is due.
(4) All reports shall be made under oath and shall be in the form prescribed by the commissioner.
(5) The commissioner shall make and publish annually an analysis and recapitulation of the reports filed under subsections (2) and (3).
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- CL 1948, 493.11 ;-- Am. 1983, Act 103, Imd. Eff. June 30, 1983 ;-- Am. 1991, Act 14, Eff. Oct. 1, 1991 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and 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 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.12a - False, Misleading, Deceptive, or Irresponsible Advertising Unlawful; Definition; Requirements for Advertising.

493.12a False, misleading, deceptive, or irresponsible advertising unlawful; definition; requirements for advertising.
Sec. 12a.
(1) False, misleading, deceptive, or irresponsible advertising is unlawful and is defined as follows:
(a) Advertising which lures, entices, induces, or tends to induce a person to incur a debt by unreasonably minimizing the consequences of assuming a legal repayment obligation or by depicting the assumption of a debt obligation as a frivolous transaction.
(b) Advertising that describes or depicts the benefits or advantages of having the money from a loan, without describing or depicting the obligation of repaying the loan with interest.
(c) Advertising with claims and representations that are not accurate or provable.
(d) Advertising which misrepresents facts or creates misleading impressions.
(e) Advertising which uses the phrase "lowest rates", "lowest rates in the city", or similar phrases unless the rates are actually lower than those of other lenders.
(f) Advertising which uses the phrase "new reduced rates", "new low rates", "reduced rates", or similar phrases for more than 60 days after the changed rates become effective.
(g) Advertising which causes a probability of confusion or misunderstanding as to the legal rights, obligations, or remedies of a lender, or as to the terms or conditions of credit.
(h) Advertising which represents that a borrower will receive a rebate, discount, or other benefit as an inducement for entering into a transaction, if the benefit is contingent on an event to occur subsequent to the consummation of the transaction.
(i) Advertising which suggests or infers that a loan is not a loan, or that interest is not charged, or that the borrower is not under an obligation to repay.
(2) A licensee shall not advertise any size of loan, security required for a loan, rate of charge, or other condition of lending except with the full intent of making loans at those rates, or lower rates, and under those conditions, to applicants who meet the standards or qualifications prescribed.
History:
Add. 1978, Act 528, Eff. Mar. 30, 1979 ;-- Am. 1991, Act 14, Eff. Oct. 1, 1991 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and 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 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.12b - Repealed. 1991, Act 14, Eff. Oct. 1, 1991.

493.12b Repealed. 1991, Act 14, Eff. Oct. 1, 1991.
Compiler's Notes:
The repealed section pertained to licensee promotional plans.
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.12d - Action to Enjoin Licensee From Advertising; Circuit Court.

493.12d Action to enjoin licensee from advertising; circuit court.
Sec. 12d.
A person may bring an action in the circuit court of the county in which an office of a licensee is located, or in the circuit court for Ingham county, to enjoin a licensee from advertising in violation of section 12a.
History:
Add. 1978, Act 528, Eff. Mar. 30, 1979 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and 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 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.13a - Credit Life Insurance; Other Insurance.

493.13a Credit life insurance; other insurance.
Sec. 13a.
(1) In addition to charges allowed under section 13, at the option of the borrower, a licensee may obtain or provide 1 or both of the following and deduct from the principal of a loan and retain an amount equal to the premium lawfully charged by the insurance company:
(a) Credit insurance as defined in the credit insurance act, 1958 PA 173, MCL 550.601 to 550.624.
(b) Any other insurance under the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302.
(2) The insurance permitted by this section shall be in force when the loan is made. If the borrower obtains the insurance from or through a licensee, the statement required by section 14 shall show the cost of the insurance and the licensee shall provide to the borrower a copy of the policy, certificate, or other evidence of the insurance. This act does not prohibit the licensee or any employee, affiliate, subsidiary, or associate of the licensee from collecting the premium or identifiable charge for the insurance permitted by this section or from receiving and retaining any gain or other benefit resulting from the insurance. A licensee shall not require the purchase of insurance as a condition precedent to the making of a loan.
History:
Add. 1963, Act 103, Eff. Sept. 6, 1963 ;-- Am. 1971, Act 168, Eff. Mar. 30, 1972 ;-- Am. 1978, Act 528, Eff. Mar. 30, 1979 ;-- Am. 1991, Act 14, Eff. Oct. 1, 1991 ;-- Am. 1994, Act 407, Eff. Mar. 30, 1995 ;-- Am. 1996, Act 184, Imd. Eff. May 3, 1996 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and 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 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.14 - Licensee; Duties.

493.14 Licensee; duties.
Sec. 14.
A licensee shall:
(a) Deliver to the borrower a disclosure statement in compliance with 12 C.F.R. part 226.
(b) Give to the borrower a plain and complete receipt for cash payments made on account of a loan at the time the payments are made, specifying the amount applied to charges and the amount, if any, applied to principal, and stating the unpaid principal balance of the loan. An unitemized receipt may be given temporarily and within 30 days a receipt as prescribed above delivered or mailed.
(c) Permit payment to be made in advance in any amount on any contract of loan at any time during regular business hours, but the licensee may apply that payment first to all charges in full at the agreed rate up to the date of the payment.
(d) Upon repayment of the loan in full, mark plainly every obligation and security signed by the borrower with the word "Paid" or "Canceled", and release any mortgage, restore any pledge, cancel and return any note, and cancel and return any assignment given to the licensee by the borrower.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- CL 1948, 493.14 ;-- Am. 1963, Act 103, Eff. Sept. 6, 1963 ;-- Am. 1978, Act 528, Eff. Mar. 30, 1979 ;-- Am. 1991, Act 14, Eff. Oct. 1, 1991 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and 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 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.14a - Compliance With Federal Consumer Credit Protection Act.

493.14a Compliance with federal consumer credit protection act.
Sec. 14a.
Compliance with the requirements of the consumer credit protection act, Public Law 90-321, 82 statute 146, commonly referred to as the federal truth in lending act is compliance with section 12 as to advertising, section 13a as to cost of insurance, and section 14.
History:
Add. 1971, Act 168, Eff. Mar. 30, 1972 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and 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 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.15 - Contract in Compliance With Retail Installment Sales Act or Home Improvement Finance Act.

493.15 Contract in compliance with retail installment sales act or home improvement finance act.
Sec. 15.
A licensee may purchase a contract made in compliance with the retail installment sales act, 1966 PA 224, MCL 445.851 to 445.873, or the home improvement finance act, 1965 PA 332, MCL 445.1101 to 445.1431.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- Am. 1947, Act 130, Eff. Oct. 11, 1947 ;-- CL 1948, 493.15 ;-- Am. 1963, Act 103, Eff. Sept. 6, 1963 ;-- Am. 1971, Act 168, Eff. Mar. 30, 1972 ;-- Am. 1978, Act 528, Eff. Mar. 30, 1979 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and 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.