HOUSE BILL No. 6230


     November 5, 1998, Introduced by Reps. Basham and Stallworth and referred to the Committee on Commerce.


        A bill to amend 1995 PA 162, entitled

   "Credit reform act,"

   by amending section 4 (MCL 445.1854).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 4.  (1) Except as provided in subsection (2), a regu-

 2    lated lender may charge, collect, and receive any rate of inter-

 3    est or finance charge for an extension of credit not to exceed

 4    25% per annum.

 5         (2) A  depository institution  REGULATED LENDER may charge,

 6    collect, and receive any rate of interest or finance charge for a

 7    credit card arrangement NOT TO EXCEED 18% PER ANNUM.

 8         (3) Except for a fee or charge provided for in

 9    section 6 or 7, in connection with an extension of credit made to

10    an individual for personal, family, or household purposes, the

11    interest or finance charge that is calculated on the principal


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 1    balance shall be computed only on the basis of the unpaid

 2    balance.




















































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