HOUSE BILL No. 4886


     September 28, 1999, Introduced by Reps. Vear, DeHart, Gieleghem and Daniels and
referred to the Committee on Insurance and Financial Services.


        A bill to amend 1969 PA 319, entitled

   "Banking code of 1969,"

   (MCL 487.301 to 487.598) by adding section 247.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 247.  IF A BANK REQUIRES AS A CONDITION OF PROVIDING A

 2    LOAN THAT THE BORROWER ESTABLISH AND DEPOSIT FUNDS INTO AN ESCROW

 3    ACCOUNT MAINTAINED BY THE BANK, THE BANK SHALL PAY THE SAME RATE

 4    OF INTEREST ON THE DEPOSITED FUNDS AS THE BANK PAYS ON ITS BASIC

 5    SAVINGS DEPOSIT ACCOUNTS.














   00379'99          Final page.                            SAT