HB-5353, As Passed House, December 1, 2005

SUBSTITUTE FOR

HOUSE BILL NO. 5353

     A bill to amend 1950 (Ex Sess) PA 27, entitled

"Motor vehicle sales finance act,"

(MCL 492.101 to 492.141) by adding section 13a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 13a. (1) A seller in an installment sale transaction may

pay on behalf of the buyer and agree to finance in the installment

sale contract all or part of the balance of any installment sale

contract secured by a motor vehicle that the seller takes in trade

in the installment sale transaction or all or any part of the

balance owed under a lease of a motor vehicle that is terminated in

connection with the installment sale transaction.

     (2) If subsection (1) applies in an installment sale

transaction, then the other necessary or incidental costs included

in the installment sale contract under section 13(2)(e) shall

include the amount the seller agreed to finance under subsection

(1).

     Enacting section 1. It is the intent of the legislature that

this section be construed as declaring the law as it exists before

this section is enacted and not as modifying it.