HOUSE BILL No. 5256 October 8, 1997, Introduced by Reps. Brown, Cropsey, Schermesser, Bogardus, Hale, Gire, Tesanovich, DeHart, Wetters, Willard, Callahan, Wojno, Goschka, Scott, Hood, McBryde and Richner and referred to the Committee on Judiciary. A bill to amend 1931 PA 328, entitled "The Michigan penal code," by amending section 219 (MCL 750.219) and by adding sections 219e, 219f, and 219g. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 219. (1)Written false statements about financial2condition to obtain credit, etc.--AnyA person shallbe guilty3of a misdemeanor, punishable by imprisonment in the county jail4for not more than 1 year, or by a fine of not more than 500 dol-5lars, who, either individually or in a representative capacity6 NOT DO ANY OF THE FOLLOWING: 7 (A)First, shall knowinglyKNOWINGLY make a false state- 8 ment in writingto any person, firm or corporation engaged in9banking or other business respecting his own financial condition10or the financial condition of any firm or corporation with which02387'97 TVD 2 1he is connected as a member, director, officer, employe or agent,2for the purpose of procuringREGARDING HIS OR HER FINANCIAL CON- 3 DITION OR THE FINANCIAL CONDITION OF ANOTHER PERSON TO OBTAIN a 4 loan or OTHER FINANCIAL creditin any formor TO OBTAIN an 5 extension of A LOAN OR OTHER FINANCIAL credit.from the person,6firm or corporation to whom such false statement is made, either7for his own use or for the use of the firm or corporation with8which he is connected as aforesaid; or9 (B)Second, havingHAVING previously made, or having 10 knowledge that another PERSON has previously made, a statement 11in writing to any person, firm or corporation engaged in banking12or other business respecting his own financial condition or the13financial condition of any firm or corporation with which he is14connected as aforesaid, shall afterwardsDESCRIBED IN SUBDIVI- 15 SION (A), procure on THE faith ofsuchTHAT statementfrom the16person, firm or corporation to whom such previous statement has17been made, either for his own use or for the use of the firm or18corporation with which he is so connected,a loan or OTHER 19 FINANCIAL creditin any form,or an extension of A LOAN OR 20 OTHER FINANCIAL credit, knowing at the time ofsuchprocuring 21 THE LOAN OR OTHER FINANCIAL CREDIT OR THE EXTENSION OF THE LOAN 22 OR OTHER FINANCIAL CREDIT thatsuch previously madeTHE state- 23 ment isin any material particularMATERIALLY false.with24respect to the present financial condition of himself or of the25firm or corporation with which he is so connected; or26 (C)Third, shall deliverDELIVER A WRITTEN STATEMENT 27 REGARDING HIS OR HER FINANCIAL CONDITION OR THE FINANCIAL 02387'97 3 1 CONDITION OF ANOTHER PERSON THAT HE OR SHE KNOWS IS FALSE to 2anyA note broker or other agent for the sale or negotiation of 3 commercial paper,any statement in writing, knowing the same to4be false, respecting his own financial condition or the financial5condition of any firm or corporation with which he is connected6as aforesaid, for the purpose of having such statement used in7furtherance ofTO OBTAIN the sale, pledge, or negotiation of 8anyA note, bill, or other instrument for the payment of money. 9made or endorsed or accepted or owned in whole or in part by him10individually or by the firm or corporation with which he is so11connected; or12 (D)Fourth, havingHAVING previously delivered or having 13 knowledge that another PERSON has previously deliveredto any14note broker or other agent for the sale or negotiation of commer-15cial paper a statement in writing respecting his own financial16condition or the financial condition of any firm or corporation17with which he is connected as aforesaid, shall afterwardsA 18 STATEMENT DESCRIBED IN SUBDIVISION (C), deliver tosuchA note 19 broker or other agent for thepurpose ofsale, pledge, or nego- 20 tiation on faith ofsuchTHAT statement,anyA note, bill, or 21 other instrument for the payment of money,made or endorsed or22accepted or owned in whole or in part by himself individually or23by the firm or corporation with which he is so connected,know- 24 ingat the time that such previously deliveredTHAT THE state- 25 ment isin any material particularMATERIALLY falseas to the26presentREGARDING THE EXISTING financial condition of himself OR 27 HERSELF orof such firm or corporationTHE OTHER PERSON. 02387'97 4 1 (2) A PERSON WHO VIOLATES THIS SECTION IS GUILTY OF A FELONY 2 PUNISHABLE BY IMPRISONMENT FOR NOT MORE THAN 4 YEARS OR A FINE OF 3 NOT MORE THAN $2,500.00. 4 SEC. 219E. (1) A PERSON SHALL NOT PREPARE OR SUBMIT AN 5 APPLICATION FOR A LOAN OR OTHER FINANCIAL CREDIT IN ANOTHER 6 PERSON'S NAME WITHOUT AUTHORIZATION FROM THAT OTHER PERSON. 7 (2) A PERSON WHO VIOLATES SUBSECTION (1) IS GUILTY OF A 8 FELONY PUNISHABLE BY IMPRISONMENT FOR NOT MORE THAN 4 YEARS OR A 9 FINE OF NOT MORE THAN $2,500.00, OR BOTH. 10 SEC. 219F. (1) A PERSON SHALL NOT FORWARD AN APPLICATION 11 FOR A LOAN OR OTHER FINANCIAL CREDIT ON BEHALF OF A PERSON TO 12 ANOTHER PERSON KNOWING OR HAVING REASON TO KNOW THE APPLICATION 13 HAS BEEN PREPARED OR IS BEING SUBMITTED IN VIOLATION OF THIS 14 CHAPTER. 15 (2) A PERSON WHO VIOLATES THIS SECTION IS GUILTY OF A FELONY 16 PUNISHABLE BY IMPRISONMENT FOR NOT MORE THAN 4 YEARS OR A FINE OF 17 NOT MORE THAN $100,000.00, OR BOTH. 18 SEC. 219G. PROPERTY THAT IS USED TO VIOLATE THIS CHAPTER OR 19 THAT IS OBTAINED FROM A VIOLATION OF THIS CHAPTER IS SUBJECT TO 20 SEIZURE AND FORFEITURE UNDER CHAPTER 47 OF THE REVISED JUDICATURE 21 ACT OF 1961, 1961 PA 236, MCL 600.4701 TO 600.4809. 22 Enacting section 1. This amendatory act does not take 23 effect unless Senate Bill No. _____ or House Bill No. _____ 24 (request no. 02387'97 a) of the 89th Legislature is enacted into 25 law. 02387'97 Final page. TVD