reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 118 of 1981 - Motor Vehicle Franchise Act (445.1561 - 445.1583) › Section 445.1579 - Indemnification of Dealer Against Certain Judgments; Payment of Costs, Fees, and Judgments; Notice.

445.1579 Indemnification of dealer against certain judgments; payment of costs, fees, and judgments; notice.
Sec. 19.
(1) Notwithstanding the terms, provisions, or conditions of any dealer agreement, a manufacturer or distributor shall indemnify and hold harmless its new motor vehicle dealers against any judgment for damages or settlement agreed to in writing by the manufacturer, including, but not limited to, court costs and reasonable attorney's fees of the new motor vehicle dealer arising solely out of the complaints, claims, or actions from defects that relate to the manufacture, assembly, or design of vehicles, parts, or accessories, or other functions by the manufacturer or distributor, that are beyond the control of the dealer, including, without limitation, the selection by the manufacturer or distributor of parts or components for the vehicle, or any damages to merchandise occurring in transit to the dealer if the carrier is designated by the manufacturer or distributor. If a complaint, claim, or action contains independent allegations against the new motor vehicle dealer, the manufacturer shall pay only that portion of the costs, fees, and judgment or settlement that is directly related to the manufacture, assembly, or design of the vehicle, parts, or accessories or other functions of the manufacturer that are beyond the control of the dealer.
(2) A manufacturer must respond to a request for indemnification under this section within 30 days after the date the new motor vehicle dealer submits all documents necessary to support its request to the manufacturer.
(3) A dealer does not have a right to indemnification or attorney fees under subsection (1) unless the dealer has given reasonable notice in writing of the complaint, claim, or action to the manufacturer or distributor.
History:
1981, Act 118, Imd. Eff. July 19, 1981 ;-- Am. 1983, Act 188, Imd. Eff. Nov. 1, 1983 ;-- Am. 2018, Act 668, Eff. Mar. 28, 2019
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 118 of 1981 - Motor Vehicle Franchise Act (445.1561 - 445.1583) › Section 445.1580 - Action for Damages or Declaratory Judgment; Liability.

445.1580 Action for damages or declaratory judgment; liability.
Sec. 20.
(1) If a manufacturer terminates, cancels, fails to renew, or discontinues a dealer agreement, without good cause as described in this act, the new motor vehicle dealer may bring an action against the manufacturer to recover actual damages reasonably incurred by the dealer as a result of the termination, cancellation, failure, or discontinuance.
(2) A manufacturer that violates this act is liable for all damages sustained by a new motor vehicle dealer as a result of the violation.
(3) A manufacturer or new motor vehicle dealer may bring an action for declaratory judgment for determination of any controversy arising under this act.
(4) A manufacturer that violates this act shall be liable for all court costs and reasonable attorney fees incurred by a dealer in an action under this section.
History:
1981, Act 118, Imd. Eff. July 19, 1981 ;-- Am. 2010, Act 138, Imd. Eff. Aug. 4, 2010
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 118 of 1981 - Motor Vehicle Franchise Act (445.1561 - 445.1583) › Section 445.1581 - Injunctive Relief.

445.1581 Injunctive relief.
Sec. 21.
Upon proper application to the circuit court, a manufacturer or distributor or new motor vehicle dealer may obtain appropriate injunctive relief against termination, cancellation, nonrenewal, or discontinuance of a dealer agreement or any other violation of this act. The court may grant injunctive relief or a temporary restraining order without bond.
History:
1981, Act 118, Imd. Eff. July 19, 1981
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 118 of 1981 - Motor Vehicle Franchise Act (445.1561 - 445.1583) › Section 445.1582 - Act Inapplicable to Dealer Outside Michigan.

445.1582 Act inapplicable to dealer outside Michigan.
Sec. 22.
Notwithstanding the terms, provisions, or conditions of a dealer agreement, this act shall have no application to dealers located outside the state of Michigan.
History:
1981, Act 118, Imd. Eff. July 19, 1981
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 118 of 1981 - Motor Vehicle Franchise Act (445.1561 - 445.1583) › Section 445.1582a - Existing Agreements and Agreements Entered Into or Renewed After Effective Date.

445.1582a Existing agreements and agreements entered into or renewed after effective date.
Sec. 22a.
(1) The 1998 amendments to this act that added this section apply to agreements in existence on December 30, 1998 and to agreements entered into or renewed after December 30, 1998.
(2) The amendments to this act made by the amendatory act that added this subsection apply to dealer agreements entered into or renewed, or existing dealer agreements that are materially and substantially amended, after the effective date of this subsection.
History:
Add. 1998, Act 456, Imd. Eff. Dec. 30, 1998 ;-- Am. 2018, Act 668, Eff. Mar. 28, 2019
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 118 of 1981 - Motor Vehicle Franchise Act (445.1561 - 445.1583) › Section 445.1583 - Repeal of MCL 445.521 to 445.534.

445.1583 Repeal of MCL 445.521 to 445.534.
Sec. 23.
Act No. 331 of the Public Acts of 1978, being sections 445.521 to 445.534 of the Compiled Laws of 1970, is repealed.
History:
1981, Act 118, Imd. Eff. July 19, 1981
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 67 of 2012 - Nonrecourse Mortgage Loan Act (445.1591 - 445.1595) › Section 445.1591 - Short Title.

445.1591 Short title.
Sec. 1.
This act shall be known and may be cited as the "nonrecourse mortgage loan act".
History:
2012, Act 67, Imd. Eff. Mar. 29, 2012
Compiler's Notes:
Enacting section 1 of Act 67 of 2012 provides:"Enacting section 1. The legislature recognizes that it is inherent in a nonrecourse loan that the lender takes the risk of a borrower's insolvency, inability to pay, or lack of adequate capital after the loan is made and that the parties do not intend that the borrower is personally liable for payment of a nonrecourse loan if the borrower is insolvent, unable to pay, or lacks adequate capital after the loan is made. The legislature recognizes that the use of a post closing solvency covenant as a nonrecourse carveout, or an interpretation of any provision in a loan document that results in a determination that a post closing solvency covenant is a nonrecourse carveout, is inconsistent with this act and the nature of a nonrecourse loan; is an unfair and deceptive business practice and against public policy; and should not be enforced. It is the intent of the legislature that this act applies to any claim made or action taken to enforce a post closing solvency covenant on or after the effective date of this act; to any claim made to enforce a post closing solvency covenant that is pending on the effective date of this act; and to any action to enforce a post closing solvency covenant that is pending on the effective date of this act, unless a judgment or final order has been entered in that action and all rights to appeal that judgment or final order have been exhausted or have expired."
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 67 of 2012 - Nonrecourse Mortgage Loan Act (445.1591 - 445.1595) › Section 445.1593 - Post Closing Solvency Covenant; Prohibited Use.

445.1593 Post closing solvency covenant; prohibited use.
Sec. 3.
(1) A post closing solvency covenant shall not be used, directly or indirectly, as a nonrecourse carveout or as the basis for any claim or action against a borrower or any guarantor or other surety on a nonrecourse loan.
(2) A provision in the documents for a nonrecourse loan that does not comply with subsection (1) is invalid and unenforceable.
History:
2012, Act 67, Imd. Eff. Mar. 29, 2012
Compiler's Notes:
Enacting section 1 of Act 67 of 2012 provides:"Enacting section 1. The legislature recognizes that it is inherent in a nonrecourse loan that the lender takes the risk of a borrower's insolvency, inability to pay, or lack of adequate capital after the loan is made and that the parties do not intend that the borrower is personally liable for payment of a nonrecourse loan if the borrower is insolvent, unable to pay, or lacks adequate capital after the loan is made. The legislature recognizes that the use of a post closing solvency covenant as a nonrecourse carveout, or an interpretation of any provision in a loan document that results in a determination that a post closing solvency covenant is a nonrecourse carveout, is inconsistent with this act and the nature of a nonrecourse loan; is an unfair and deceptive business practice and against public policy; and should not be enforced. It is the intent of the legislature that this act applies to any claim made or action taken to enforce a post closing solvency covenant on or after the effective date of this act; to any claim made to enforce a post closing solvency covenant that is pending on the effective date of this act; and to any action to enforce a post closing solvency covenant that is pending on the effective date of this act, unless a judgment or final order has been entered in that action and all rights to appeal that judgment or final order have been exhausted or have expired."
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 67 of 2012 - Nonrecourse Mortgage Loan Act (445.1591 - 445.1595) › Section 445.1594 - Loan Documents Not Containing Nonrecourse Loan Provisions; Use.

445.1594 Loan documents not containing nonrecourse loan provisions; use.
Sec. 4.
This act does not prohibit a loan secured by a mortgage on real property located in this state from being fully recourse to the borrower or the guarantor, including, but not limited to, as a result of a post closing solvency covenant, if the loan documents for that loan do not contain nonrecourse loan provisions.
History:
2012, Act 67, Imd. Eff. Mar. 29, 2012
Compiler's Notes:
Enacting section 1 of Act 67 of 2012 provides:"Enacting section 1. The legislature recognizes that it is inherent in a nonrecourse loan that the lender takes the risk of a borrower's insolvency, inability to pay, or lack of adequate capital after the loan is made and that the parties do not intend that the borrower is personally liable for payment of a nonrecourse loan if the borrower is insolvent, unable to pay, or lacks adequate capital after the loan is made. The legislature recognizes that the use of a post closing solvency covenant as a nonrecourse carveout, or an interpretation of any provision in a loan document that results in a determination that a post closing solvency covenant is a nonrecourse carveout, is inconsistent with this act and the nature of a nonrecourse loan; is an unfair and deceptive business practice and against public policy; and should not be enforced. It is the intent of the legislature that this act applies to any claim made or action taken to enforce a post closing solvency covenant on or after the effective date of this act; to any claim made to enforce a post closing solvency covenant that is pending on the effective date of this act; and to any action to enforce a post closing solvency covenant that is pending on the effective date of this act, unless a judgment or final order has been entered in that action and all rights to appeal that judgment or final order have been exhausted or have expired."
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 67 of 2012 - Nonrecourse Mortgage Loan Act (445.1591 - 445.1595) › Section 445.1595 - Enforcement and Interpretation of Existing Nonrecourse Loan Documents.

445.1595 Enforcement and interpretation of existing nonrecourse loan documents.
Sec. 5.
This act applies to the enforcement and interpretation of all nonrecourse loan documents in existence on, or entered into on or after, the effective date of this act.
History:
2012, Act 67, Imd. Eff. Mar. 29, 2012
Compiler's Notes:
Enacting section 1 of Act 67 of 2012 provides:"Enacting section 1. The legislature recognizes that it is inherent in a nonrecourse loan that the lender takes the risk of a borrower's insolvency, inability to pay, or lack of adequate capital after the loan is made and that the parties do not intend that the borrower is personally liable for payment of a nonrecourse loan if the borrower is insolvent, unable to pay, or lacks adequate capital after the loan is made. The legislature recognizes that the use of a post closing solvency covenant as a nonrecourse carveout, or an interpretation of any provision in a loan document that results in a determination that a post closing solvency covenant is a nonrecourse carveout, is inconsistent with this act and the nature of a nonrecourse loan; is an unfair and deceptive business practice and against public policy; and should not be enforced. It is the intent of the legislature that this act applies to any claim made or action taken to enforce a post closing solvency covenant on or after the effective date of this act; to any claim made to enforce a post closing solvency covenant that is pending on the effective date of this act; and to any action to enforce a post closing solvency covenant that is pending on the effective date of this act, unless a judgment or final order has been entered in that action and all rights to appeal that judgment or final order have been exhausted or have expired."
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 135 of 1977 - Mortgage Lending Practices (445.1601 - 445.1614) › Section 445.1602a - Property/casualty Insurance as Condition to Loan; Limitation on Amount Required; Amount as Condition of Sale, Transfer, or Assignment.

445.1602a Property/casualty insurance as condition to loan; limitation on amount required; amount as condition of sale, transfer, or assignment.
Sec. 2a.
(1) Except as provided in subsection (2), a credit granting institution that requires a mortgagor to maintain property/casualty insurance as a condition to receiving a mortgage loan shall not require the amount of the property/casualty insurance to be greater than the replacement cost of the mortgaged building or buildings.
(2) A credit granting institution may require an amount of property/casualty insurance that is required of the credit granting institution as a condition of a sale, transfer, or assignment of all or part of the mortgage to a third party. This subsection does not require that the credit granting institution anticipate a sale, transfer, or assignment at the time the mortgage loan is made.
History:
Add. 1995, Act 214, Imd. Eff. Nov. 29, 1995
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 135 of 1977 - Mortgage Lending Practices (445.1601 - 445.1614) › Section 445.1603 - Lending Policies and Criteria; Loan Application Procedures and Contract Terms.

445.1603 Lending policies and criteria; loan application procedures and contract terms.
Sec. 3.
(1) Except as otherwise prohibited in section 2, lending policies and criteria of a credit granting institution used in the consideration of a loan application shall include without limitation the following:
(a) Consideration of the credit eligibility of the applicant and the market value of a proposed security.
(b) Consideration of those factors, known to the credit granting institution, as the presence of active community and neighborhood organization, the presence of government, nonprofit, and private programs in the neighborhood intended to eliminate negative environmental influences, other revitalization efforts, and any other factors potentially mitigating the effect of physical decline.
(2) A credit granting institution may employ different loan application procedures and contract terms for loans to construct new dwellings as compared to loans to purchase existing dwellings.
History:
1977, Act 135, Eff. July 1, 1978
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 135 of 1977 - Mortgage Lending Practices (445.1601 - 445.1614) › Section 445.1604 - Advantageous Loan Terms.

445.1604 Advantageous loan terms.
Sec. 4.
This act shall not be construed to prohibit the United States, this state, a local governmental entity, an agency or instrumentality of any of the preceding entities, a nonprofit organization, or a credit granting institution acting with the permission of the commissioner, from offering more advantageous loan terms to a person, corporation, partnership, or other entity, or from making advantageous terms available on the basis of location in a specific geographic area when made available under the auspices of an organized housing program operated by the United States, this state, a local governmental entity, an agency or instrumentality of any of the preceding entities, a nonprofit corporation, or a credit granting institution.
History:
1977, Act 135, Eff. July 1, 1978
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 135 of 1977 - Mortgage Lending Practices (445.1601 - 445.1614) › Section 445.1605 - Notice to Loan Inquirers or Applicants; Posting; Contents.

445.1605 Notice to loan inquirers or applicants; posting; contents.
Sec. 5.
(1) A credit granting institution shall post a written notice in a conspicuous place to reasonably apprise a loan inquirer or applicant of his or her rights under this act in the institution's main office and each branch office or service center in the following language:
Notice to inquirers and loan applicants
You have a right to submit a written application for a mortgage loan or a home improvement loan or to request written information concerning typical loan terms that we are currently offering on mortgage loans and home improvement loans. It is illegal to establish a minimum mortgage amount of more than $10,000.00 or a minimum home improvement loan of more than $1,000.00. It is illegal to deny a loan or vary the terms and conditions of a loan because of the racial or ethnic trends or characteristics of the neighborhood or the age of the structure, but not because of its physical condition. If your application for a loan is rejected, you have a right to a written statement of the reason for the rejection. If you are granted a loan but the amount required for down payment, the interest rate, term to maturity, application procedure, or other terms or conditions of the loan vary from terms or conditions offered in other neighborhoods, you have a right to a written statement of the reasons for the variation. The rights described in this notice are set forth in and limited by (cite this act). If you believe that your rights under this act have been violated, you should contact the financial institutions bureau of the Michigan department of commerce.
(2) The current telephone number of the financial institutions bureau shall be included in the notice set forth in subsection (1).
History:
1977, Act 135, Eff. July 1, 1978 ;-- Am. 1996, Act 337, Imd. Eff. June 26, 1996
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 135 of 1977 - Mortgage Lending Practices (445.1601 - 445.1614) › Section 445.1606 - Repealed. 2002, Act 692, Eff. Mar. 31, 2003.

445.1606 Repealed. 2002, Act 692, Eff. Mar. 31, 2003.
Compiler's Notes:
The repealed section pertained to institution subject to Federal Home Mortgage Disclosure Act of 1975.
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 135 of 1977 - Mortgage Lending Practices (445.1601 - 445.1614) › Section 445.1607 - Retention of Records and Documents.

445.1607 Retention of records and documents.
Sec. 7.
A credit granting institution shall retain, for a period of 25 months after a loan application has been submitted or until the loan is repaid, whichever is earlier, a complete record of each loan application which has been accepted, rejected, or varied and the reason for the application's rejection or variation, together with any other documents relating to the application. Records and documents retained under this section shall be maintained in a reasonable manner to enable the commissioner or the commissioner's representatives to locate information pertinent to a given complaint.
History:
1977, Act 135, Eff. July 1, 1978
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 135 of 1977 - Mortgage Lending Practices (445.1601 - 445.1614) › Section 445.1608 - Violation; Investigation; Progress Report; Hearing; Report; Availability of Information.

445.1608 Violation; investigation; progress report; hearing; report; availability of information.
Sec. 8.
(1) If in the opinion of the commissioner a credit granting institution is violating or has violated this act, or upon receipt of a written complaint of an alleged violation of this act by a credit granting institution, the commissioner shall investigate the alleged violation by the institution. The investigation shall commence within 15 days after the receipt of a complaint, and the commissioner shall report on the progress of the investigation to the affected parties within 30 days. The investigation shall be completed within 60 days after receipt of the complaint, and the commissioner shall report the findings to the affected parties. The commissioner may conduct a hearing on a complaint pursuant to the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being sections 24.201 to 24.328 of the Michigan Compiled Laws.
(2) The commissioner shall report annually to the house and senate committees overseeing civil rights and housing issues regarding the enforcement of this act. The commissioner shall provide written testimony summarizing activities taken in the previous year to achieve the purposes of this act, and such testimony shall be made available to the public upon request.
(3) The commissioner shall inform the governor, the legislature, and the press annually of the availability of information collected pursuant to the federal home mortgage disclosure act of 1975, title III of Public Law 94-200, 12 U.S.C. 2801 to 2810, including the methods by which both summary information and institution-specific information may be obtained. The commissioner shall maintain either an electronic or hard copy file of the standard metropolitan statistical area summaries of the information described in this subsection and shall ensure the availability of these summaries to the legislature and other persons upon request. The commissioner may impose a reasonable charge for providing the information.
History:
1977, Act 135, Eff. July 1, 1978 ;-- Am. 1993, Act 43, Imd. Eff. May 27, 1993
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 135 of 1977 - Mortgage Lending Practices (445.1601 - 445.1614) › Section 445.1609 - Voluntary Mortgage Review Boards; Mandatory Mortgage Review Boards.

445.1609 Voluntary mortgage review boards; mandatory mortgage review boards.
Sec. 9.
(1) The commissioner shall encourage credit granting institutions to cooperate with local citizen's groups and governing bodies of local units of government in the formation and operation of voluntary mortgage review boards. The purpose of voluntary local mortgage review boards is to review complaints of rejected loan applicants, attempt to place loans for rejected applicants, or any other purpose to which the persons forming the mortgage review board may agree.
(2) The commissioner may assist loan applicants and credit granting institutions in the placement of loans.
(3) If a mortgage review board is unable to successfully place the loan for the rejected applicant, the board shall notify the applicant in writing of the applicant's right to file a complaint with the commissioner or other governmental agency, or both, that has regulatory authority over the institution that denied the loan.
(4) Voluntary mortgage review boards shall not be subject to the freedom of information act, Act No. 442 of the Public Acts of 1976, being sections 15.231 to 15.246 of the Michigan Compiled Laws, and the open meetings act, Act No. 267 of the Public Acts of 1976, being sections 15.261 to 15.275 of the Michigan Compiled Laws.
(5) The material furnished to the board by the loan applicant or by the financial institution at the applicant's request and other material relating to an applicant shall be kept confidential. Before a financial institution may release records and documents pertaining to the loan application to the mortgage review board, the applicant shall sign a release form. A financial institution may not release a credit report.
(6) A mortgage review board shall maintain minutes which reflect the number of cases appealed to the board, the disposition of each case, the persons present at each proceeding, and if closed to the public, the party requesting the closing.
(7) Meetings of mandatory mortgage review boards shall be open to the public unless the rejected applicant or the disapproving financial institution requests a closed session to discuss material concerning the rejected application. In cases of closed meetings, only members of the mortgage review board, the disapproving financial institution or the institution's representatives, or both, and the rejected applicant or the applicant's representatives, or both, shall attend.
History:
1977, Act 135, Eff. July 1, 1978 ;-- Am. 1993, Act 43, Imd. Eff. May 27, 1993
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 135 of 1977 - Mortgage Lending Practices (445.1601 - 445.1614) › Section 445.1610 - Rules.

445.1610 Rules.
Sec. 10.
The commissioner may promulgate rules as to the form of information required to be given, disclosed, or maintained under this act and as to the enforcement provisions of sections 8, 11, and 12.
History:
1977, Act 135, Eff. July 1, 1978
Admin Rule:
R 445.1001 et seq. of the Michigan Administrative Code.
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 135 of 1977 - Mortgage Lending Practices (445.1601 - 445.1614) › Section 445.1611 - Injunction; Damages; Commissioner as Party Plaintiff; Class Actions Prohibited.

445.1611 Injunction; damages; commissioner as party plaintiff; class actions prohibited.
Sec. 11.
(1) A person may commence an action in the circuit court to seek an injunction for a violation or to seek damages for a violation of this act, or both. The commissioner may join as a party plaintiff in an action. A person shall not be entitled to damages under this act unless that person has made a written loan application which has been denied or the terms of which have been varied by the credit granting institution against whom the action is filed. Class actions shall not be permitted under this act.
(2) A person injured by a credit granting institution in violation of this act shall be entitled to those damages as the court determines appropriate, but not to exceed $2,000.00 or actual damages plus reasonable attorney's fees, whichever is greater, for each violation of this act.
History:
1977, Act 135, Eff. July 1, 1978
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 135 of 1977 - Mortgage Lending Practices (445.1601 - 445.1614) › Section 445.1612 - Violation; Fine; Costs of Investigation; Proceedings.

445.1612 Violation; fine; costs of investigation; proceedings.
Sec. 12.
If the commissioner finds that a credit granting institution has violated this act, the commissioner may assess a fine of not more than $2,000.00 for each violation, except that a credit granting institution which has violated section 2 shall be fined not more than $10,000.00 plus the costs of the investigation. Each person injured by a violation of this act shall constitute a separate violation. However, a violation of this act resulting from the inclusion of prohibited language in, or the exclusion of required language from, a form or other general publication used in the ordinary course of business of a credit granting institution shall constitute a single violation and not several violations for each copy or use of the form or publication. In determining a fine the commissioner shall consider the extent to which the violation was a knowing and wilful violation, the extent of injury suffered because of the violation, the corrective action taken by the institution to insure that the violation will not be repeated, and the record of the institution in complying with this act. Any proceedings under this section shall be subject to the procedures of Act No. 306 of the Public Acts of 1969, as amended.
History:
1977, Act 135, Eff. July 1, 1978
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 135 of 1977 - Mortgage Lending Practices (445.1601 - 445.1614) › Section 445.1613 - Commencement of Action; Limitation.

445.1613 Commencement of action; limitation.
Sec. 13.
An action shall not be commenced under this act more than 2 years after the occurrence giving rise to the cause of action.
History:
1977, Act 135, Eff. July 1, 1978
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 135 of 1977 - Mortgage Lending Practices (445.1601 - 445.1614) › Section 445.1614 - Effective Date.

445.1614 Effective date.
Sec. 14.
This act shall not take effect until July 1, 1978.
History:
1977, Act 135, Eff. July 1, 1978
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 351 of 1984 - Due-on-Sale Clauses (445.1621 - 445.1629) › Section 445.1622 - Enforcement of Due-on-Sale Clause Generally.

445.1622 Enforcement of due-on-sale clause generally.
Sec. 2.
Except for a residential window period loan, a lender may enforce a due-on-sale clause in a real property loan in accordance with the terms of the loan contract. A lender shall enforce a due-on-sale clause in a residential window period loan only in accordance with sections 3 to 5.
History:
1984, Act 351, Eff. Oct. 15, 1985 ;-- Am. 1985, Act 136, Imd. Eff. Oct. 15, 1985
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 351 of 1984 - Due-on-Sale Clauses (445.1621 - 445.1629) › Section 445.1625 - Limitations on Enforcement of Due-on-Sale Clause During Term of Land Contracts or Second Mortgages.

445.1625 Limitations on enforcement of due-on-sale clause during term of land contracts or second mortgages.
Sec. 5.
(1) With respect to any residential real property loan, other than a residential real property loan originated by a federal savings and loan association, a federal savings bank, a national bank, or a federally chartered credit union, if the property securing the loan was sold or transferred prior to October 15, 1982 either on any land contract which does not have a due-on-sale clause or subject to a second mortgage in favor of the seller which does not have a due-on-sale clause, then upon 1 or more subsequent sales or transfers of the property without a payoff of that land contract or second mortgage, a lender shall not enforce a due-on-sale clause in its loan contract.
(2) The limitations on enforcement of a due-on-sale clause in subsection (1) shall remain in force only for the term of any land contracts or second mortgages in effect on October 15, 1982 not containing a due-on-sale clause or until those land contracts or second mortgages are paid off, whichever occurs first.
History:
1984, Act 351, Eff. Oct. 15, 1985
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 351 of 1984 - Due-on-Sale Clauses (445.1621 - 445.1629) › Section 445.1626 - Circumstances Under Which Enforcement Prohibited.

445.1626 Circumstances under which enforcement prohibited.
Sec. 6.
A lender shall not enforce a due-on-sale clause in a residential real property loan in any circumstances under which enforcement is prohibited under section 341(d) of the Garn-St. Germain depository institutions act of 1982, 12 U.S.C. 1701j-3, as currently in force.
History:
1984, Act 351, Eff. Oct. 15, 1985
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 351 of 1984 - Due-on-Sale Clauses (445.1621 - 445.1629) › Section 445.1626a - Consent to Sale or Transfer of Real Property Subject to Residential Window Period Loan Containing Due-on-Sale Clause.

445.1626a Consent to sale or transfer of real property subject to residential window period loan containing due-on-sale clause.
Sec. 6a.
Nothing in this act shall be construed to prohibit a lender, either before or after making a determination of the creditworthiness of a proposed buyer or transferee, from consenting in writing to a sale or transfer of real property that is subject to a residential window period loan containing a due-on-sale clause.
History:
Add. 1985, Act 136, Imd. Eff. Oct. 15, 1985
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 351 of 1984 - Due-on-Sale Clauses (445.1621 - 445.1629) › Section 445.1627 - Contract for Sale or Transfer of Residential Property Subject to Mortgage; Provisions in Boldface Type.

445.1627 Contract for sale or transfer of residential property subject to mortgage; provisions in boldface type.
Sec. 7.
Each contract for the sale or transfer of residential property which is subject to a mortgage shall provide in boldface type substantially as follows:
"Seller understands that consummation of the sale or transfer of the property described in this agreement shall not relieve the seller of any liability that seller may have under the mortgage(s) to which the property is subject, unless otherwise agreed to by the lender or required by law or regulation."
History:
1984, Act 351, Eff. Oct. 15, 1985
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 351 of 1984 - Due-on-Sale Clauses (445.1621 - 445.1629) › Section 445.1628 - Violation by Lender; Liability; Action to Recover Civil Fine; Prohibited Conduct by Licensee; Liability for Civil Fine; Revocation of License; Action for Declaratory Judgment or Injunction; Action for Actual Damages and Attorneys' Fees.

445.1628 Violation by lender; liability; action to recover civil fine; prohibited conduct by licensee; liability for civil fine; revocation of license; action for declaratory judgment or injunction; action for actual damages and attorneys' fees.
Sec. 8.
(1) A lender who knowingly enforces or attempts to enforce a due-on-sale clause in violation of this act shall be liable for a civil fine not to exceed $5,000.00 for each offense. The attorney general or a prosecuting attorney may bring an action to recover a civil fine under this section.
(2) Any person licensed to do business in this state who, while carrying on that business, knowingly advises a person selling or transferring property securing a residential window period loan not to notify a lender as required by section 3 or who knowingly otherwise aids or assists a person in evading the enforcement of a due-on-sale clause enforceable under this act shall be liable for a civil fine not to exceed $5,000.00 for each offense and shall be subject to revocation of his or her license.
(3) The attorney general, a prosecuting attorney, or any other person may bring an action for 1 or both of the following:
(a) A declaratory judgment that a method, act, or practice violates this act.
(b) An injunction to enjoin a lender, real estate broker, or real estate salesperson which is engaging or is about to engage in a method, act, or practice which violates or would violate this act.
(4) In addition to any other remedy provided by this act, a person who suffers loss as a result of a violation of this act may bring an action to recover actual damages or $250.00, whichever is greater, together with reasonable attorneys' fees.
History:
1984, Act 351, Eff. Oct. 15, 1985
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 351 of 1984 - Due-on-Sale Clauses (445.1621 - 445.1629) › Section 445.1629 - Effective Date.

445.1629 Effective date.
Sec. 9.
This act shall take effect October 15, 1985.
History:
1984, Act 351, Eff. Oct. 15, 1985
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 660 of 2002 - Consumer Mortgage Protection Act (445.1631 - 445.1645) › Section 445.1631 - Short Title.

445.1631 Short title.
Sec. 1.
This act shall be known and may be cited as the "consumer mortgage protection act".
History:
2002, Act 660, Imd. Eff. Dec. 23, 2002
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 660 of 2002 - Consumer Mortgage Protection Act (445.1631 - 445.1645) › Section 445.1633 - Compliance With State and Federal Laws.

445.1633 Compliance with state and federal laws.
Sec. 3.
A person shall broker, make, or service mortgage loans in accordance with all applicable state and federal laws.
History:
2002, Act 660, Imd. Eff. Dec. 23, 2002
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 660 of 2002 - Consumer Mortgage Protection Act (445.1631 - 445.1645) › Section 445.1634 - Person Making Mortgage Loan; Prohibited Conduct.

445.1634 Person making mortgage loan; prohibited conduct.
Sec. 4.
(1) A person offering to make or making a mortgage loan shall not do either of the following:
(a) Charge a fee for a product or service if the product or service is not actually provided to the customer.
(b) Misrepresent the amount charged by or paid to a third party for a product or service.
(2) A lender in making a mortgage loan shall not finance as part of the loan single premium coverage for any credit life, credit disability, or credit unemployment.
(3) A person, appraiser, or real estate agent shall not make, directly or indirectly, any false, deceptive, or misleading statement or representation in connection with a mortgage loan including, but not limited to, the borrower's ability to qualify for a mortgage loan or the value of the dwelling that will secure repayment of the mortgage loan.
(4) A lender shall not insert or change information on an application for a mortgage loan if the lender knows that the information is false and misleading and intended to deceive a third party that the borrower is qualified for the loan when in fact the third party would not approve the loan without the insertion or change.
(5) A statement or representation is deceptive or misleading if it has the capacity to deceive or mislead a borrower or potential borrower. The commissioner shall consider any of the following factors in deciding whether a statement or misrepresentation is deceptive or misleading:
(a) The overall impression that the statement or representation reasonably creates.
(b) The particular type of audience to which the statement is directed.
(c) Whether it may be reasonably comprehended by the segment of the public to which the statement is directed.
(6) A lender shall not condition the payment of an appraisal upon a predetermined value or the closing of the mortgage loan which is the basis of the appraisal.
(7) A person shall not directly or indirectly compensate, coerce, or intimidate an appraiser for the purpose of influencing the independent judgment of the appraiser with respect to the value of the dwelling offered as security for repayment of the mortgage loan.
(8) A mortgage loan note shall not contain blanks regarding payments, interest rates, maturity date, or amount borrowed to be filled in after the note is signed by the borrower.
History:
2002, Act 660, Imd. Eff. Dec. 23, 2002
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 660 of 2002 - Consumer Mortgage Protection Act (445.1631 - 445.1645) › Section 445.1635 - Mortgage Loan With Term Less Than 5 Years; Payment Schedule.

445.1635 Mortgage loan with term less than 5 years; payment schedule.
Sec. 5.
A mortgage loan with a term of less than 5 years shall not have a payment schedule with regular periodic payments that when aggregated do not fully amortize the outstanding principal balance. This section does not apply to loans with maturities of less than 1 year, if the purpose of the loan is a "bridge" loan connected with the acquisition or construction of a dwelling intended to become the borrower's principal dwelling.
History:
2002, Act 660, Imd. Eff. Dec. 23, 2002
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 660 of 2002 - Consumer Mortgage Protection Act (445.1631 - 445.1645) › Section 445.1636 - Federal Special Information Booklet; Document to Be Prepared by Department.

445.1636 Federal special information booklet; document to be prepared by department.
Sec. 6.
(1) Subject to subsection (2), at the time a person applies for a mortgage loan, the lender shall provide the applicant with a copy of the special information booklet described in 12 CFR 1024.6, issued under the authority of the real estate settlement procedures act of 1974, Public Law 93-533.
(2) If the federal government repeals or amends 12 CFR 1024.6 or otherwise ceases publication of the special information booklet described in subsection (1), the department of insurance and financial services shall prepare a document that describes the rights of borrowers in mortgage loan transactions; annually review the document to ensure the accuracy of any telephone numbers, Internet website addresses, or other information included in the document; and make the document available to lenders and the public. If the document described in this subsection is available to a lender under this subsection at the time a person applies for a mortgage loan, the lender shall provide the applicant with a copy of that document.
History:
2002, Act 660, Imd. Eff. Dec. 23, 2002 ;-- Am. 2016, Act 44, Eff. June 13, 2016
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 660 of 2002 - Consumer Mortgage Protection Act (445.1631 - 445.1645) › Section 445.1637 - Repealed. 2016, Act 44, Eff. June 13, 2016.

445.1637 Repealed. 2016, Act 44, Eff. June 13, 2016.
Compiler's Notes:
The repealed section pertained to written notice regarding credit counseling.
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 660 of 2002 - Consumer Mortgage Protection Act (445.1631 - 445.1645) › Section 445.1638 - Examinations and Investigations by Commissioner.

445.1638 Examinations and investigations by commissioner.
Sec. 8.
The commissioner may conduct examinations and investigations of a person over whom the commissioner has regulatory authority as necessary to determine whether the person is brokering, making, servicing, or collecting mortgage loans as required by this act.
History:
2002, Act 660, Imd. Eff. Dec. 23, 2002
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 660 of 2002 - Consumer Mortgage Protection Act (445.1631 - 445.1645) › Section 445.1639 - Violation of Act.

445.1639 Violation of act.
Sec. 9.
If the commissioner determines that a person is brokering, making, servicing, or collecting mortgage loans in violation of this act, the commissioner shall do 1 or more of the following:
(a) Initiate a cause of action under section 10.
(b) If the person is chartered, licensed, registered, regulated, or administered by the commissioner under a law of this state, the commissioner shall enforce the penalties and remedies under that law.
(c) Forward a complaint to the appropriate regulatory or investigatory authority.
History:
2002, Act 660, Imd. Eff. Dec. 23, 2002
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 660 of 2002 - Consumer Mortgage Protection Act (445.1631 - 445.1645) › Section 445.1640 - Action by Attorney General or Prosecuting Attorney.

445.1640 Action by attorney general or prosecuting attorney.
Sec. 10.
The attorney general or the prosecuting attorney for the county where an alleged violation occurred may bring an action against a person to do 1 or more of the following:
(a) Obtain a declaratory judgment that a method, act, or practice of the person is a violation of this act.
(b) Enjoin a person who is engaging or about to engage in a method, act, or practice that is a violation of this act.
(c) Obtain a civil fine of not more than $10,000.00 for the first offense and not more than $20,000.00 for the second and any subsequent offense.
History:
2002, Act 660, Imd. Eff. Dec. 23, 2002
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 660 of 2002 - Consumer Mortgage Protection Act (445.1631 - 445.1645) › Section 445.1641 - Unintentional and Bona Fide Error.

445.1641 Unintentional and bona fide error.
Sec. 11.
(1) A person is not liable for a violation under section 10 if the person shows that the violation was an unintentional and bona fide error notwithstanding the maintenance of procedures reasonably adopted to avoid the error. Examples of a bona fide error include clerical, calculation, computer malfunction, programming, or printing errors. An error in legal judgment with respect to a person's obligations under this act is not a bona fide error.
(2) A person is not liable for a violation under section 10 if, within 60 days after discovery of the violation and before the institution of an action under section 10, the person notifies the borrower or buyer of the violation and corrects the violation in a manner that, to the extent it is reasonably possible to do so, restores the borrower or buyer to the position in which the borrower or buyer would have been if the violation had not occurred.
(3) The person alleged to have violated this act has the burden of proving that he or she is not liable as provided under this section.
History:
2002, Act 660, Imd. Eff. Dec. 23, 2002
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 660 of 2002 - Consumer Mortgage Protection Act (445.1631 - 445.1645) › Section 445.1642 - Enforcement Not Limited.

445.1642 Enforcement not limited.
Sec. 12.
This act does not limit the authority of the commissioner, the attorney general, or a county prosecutor to enforce any law under which a person is chartered, organized, licensed, registered, regulated, or otherwise authorized to do business in this state.
History:
2002, Act 660, Imd. Eff. Dec. 23, 2002
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 660 of 2002 - Consumer Mortgage Protection Act (445.1631 - 445.1645) › Section 445.1643 - Model Programs for Financial Education.

445.1643 Model programs for financial education.
Sec. 13.
(1) The department of insurance and financial services shall develop and make available to local units of government, financial institutions, and other interested persons 1 or more model programs for financial education.
(2) The program required under this section shall be designed to teach personal financial management skills and the basic principles involved with saving, borrowing, investing, and protection against predatory and other fraudulent lending practices.
History:
2002, Act 660, Imd. Eff. Dec. 23, 2002 ;-- Am. 2016, Act 44, Eff. June 13, 2016