SB 748

SENATE BILL NO. 748
A bill to amend 1995 PA 162, entitled
"Credit reform act,"
by amending sections 2 and 5 (MCL 445.1852 and
445.1855), section 2 as amended by 1996 PA 419.
the people of the state of michigan enact:
Sec. 2. As used in this act:
(a)
"Borrower" means a person who that obtains an extension of credit from a regulated
lender.
(b)
"Commissioner" means the commissioner of
the financial institutions bureau of the department of consumer and industry
services.director of the department of
insurance and financial services.
(c) "Credit
card arrangement" means an extension of credit that is not secured by real
property made to a cardholder of a credit card or charge card issued by a
regulated lender under an arrangement that gives to a cardholder the privilege
of obtaining credit from the regulated lender or any other person in purchasing
or leasing property or services, obtaining credit or loans, or otherwise.
(d) "Credit
sale" means an extension of credit for the sale of goods or services by a
seller that is subject to either of the following:
(i) The home improvement finance act, Act No. 332 of the Public Acts of 1965, being sections 445.1101 to 445.1431 of the Michigan Compiled Laws, or the 1965 PA 332, MCL
445.1101 to 445.1431.
(ii) The motor vehicle sales finance act, Act No. 27 of the Public Acts of the Extra Session of
1950, being sections 492.101 to 492.141 of the
Michigan Compiled Laws.1950 (Ex Sess) PA 27, MCL 492.101 to 492.137a.
(e)
"Depository institution" means a bank, savings and loan association,
savings bank, or a credit union chartered under state or federal law which that maintains a principal office or branch in
this state.
(f) "Excessive
fee or charge" means a fee or charge that exceeds the amount allowed in
section 6(1), (2), or (3), section 7, or any other applicable law or statute of
this state.
(g) "Extension
of credit" means a loan or credit sale made by a regulated lender. An extension Extension of
credit does not include an extension of credit described in section 501(a)(1) of title V of the depository institutions
deregulation and monetary control act of 1980, Public Law 96-221, 12 U.S.C. 1735f-7 nt.12 USC 1735f-7a.
(h)
"Person" means an individual, corporation, partnership, association,
governmental entity, or any other legal entity.
(i) "Regulated
lender" means a any of the following:
(i) A depository institution. , a
(ii) A licensee under any
of the following:
(A) The consumer
financial services act, Act No. 161 of the Public
Acts of 1988, being sections 487.2051 to 487.2072 of the
Michigan Compiled Laws, Act No. 379 of the Public Acts of 1984, being sections 493.101
to 493.114 of the Michigan Compiled Laws, the 1988 PA 161, MCL
487.2051 to 487.2072.
(B) 1984 PA 379, MCL 493.101 to 493.114.
(C) The motor
vehicle sales finance act, Act No. 27 of the Public
Acts of the Extra Session of 1950, Act No. 125 of the Public Acts of 1981,
being sections 493.51 to 493.81 of the Michigan Compiled Laws, or the 1950 (Ex Sess) PA 27, MCL 492.101 to 492.137a.
(D) The secondary mortgage loan act, 1981 PA 125, MCL 493.51 to 493.81.
(E) The regulatory
loan act, of 1963,
Act No. 21 of the Public Acts of 1939, being sections 493.1 to 493.26 of the Michigan Compiled Laws, or a 1939 PA 21, MCL
493.1 to 493.24.
(iii) A seller under the home improvement finance
act, Act No. 332 of the Public Acts of 1965.1965 PA 332, MCL 445.1101 to 445.1431.
Sec. 5. The written agreement made in
connection with a credit sale under the home improvement finance act, Act No. 332 of the Public Acts of 1965, being sections 445.1101 to 445.1431 of the Michigan Compiled Laws, 1965 PA 332, MCL
445.1101 to 445.1431, or
the motor vehicle sales finance act, Act No. 27 of
the Public Acts of the Extra Session of 1950, being sections 492.101 to 492.141 of the Michigan Compiled Laws, 1950 (Ex Sess) PA
27, MCL 492.101 to 492.137a, may provide for precomputed interest or its equivalent if any rebate due
at prepayment in full is computed according to the actuarial method.
Enacting section 1.
This amendatory act does not take effect unless Senate Bill No. 739 of the
103rd Legislature is enacted into law.