HOUSE BILL No. 5353

 

October 25, 2005, Introduced by Reps. Robertson, Hunter, Palsrok, Hune, Marleau, Ball, Dillon, Steil, Mayes, Clemente, Taub and Green and referred to the Committee on Banking and Financial Services.

 

     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 any loan 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.