SB-0238, As Passed Senate, May 16, 2017
March 14, 2017, Introduced by Senator BOOHER and referred to the Committee on Banking and Financial Institutions.
A bill to amend 1939 PA 21, entitled
"Regulatory loan act,"
by amending section 12 (MCL 493.12), as amended by 2002 PA 393.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 12. (1) A licensee or other person shall not advertise,
print, display, publish, distribute, or broadcast or cause or
permit to be advertised, printed, displayed, published,
distributed, or broadcast, in any manner whatsoever a false,
misleading, or deceptive statement or representation with regard to
the rates, terms, or conditions for the lending of money, credit,
goods, or things in action.
(2)
A licensee shall not take a lien upon on real estate as
security for a loan made under this act, except a lien acquired by
execution or otherwise after the entry of a judgment.
(3) A licensee shall not take a confession of judgment or a
power of attorney to appear or to confess judgment on behalf of a
borrower. A licensee shall not take a note or evidence of
indebtedness that does not accurately disclose the actual amount of
the loan, the time for which it is made, and the agreed rate of
charge, or an instrument in which blanks are left to be filled in
after execution.
(4)
A licensee shall not discriminate against a person an
individual in the extension of credit on the basis of sex or
marital status.
(5) Except as provided under section 9g, a licensee shall not
knowingly
permit a person to violate an order that has been is
issued under this act or any other financial licensing act that
prohibits
that person individual from being employed by, an agent
of, or a control person of the licensee.
(6) A licensee shall not pay a person a fee for locating a
potential borrower for the licensee or introducing or referring a
potential borrower to the licensee unless both of the following are
met:
(a) The potential borrower is not directly or indirectly
charged for all or any part of the fee if he or she enters into a
loan with the licensee.
(b) The amount of the fee does not exceed $500.00.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.