SB 750

SENATE BILL NO. 750
A bill to amend 2005 PA 244, entitled
"Deferred presentment service transactions
act,"
by amending section 2 (MCL 487.2122), as amended by
2016 PA 140.
the people of the state of michigan enact:
Sec. 2. (1) As used in this act:
(a)
"Applicant" means a person that is seeking a license to engage in the
business of providing deferred presentment service transactions under this act.
(b)
"Check" means a draft that is payable on demand and drawn on a bank,
savings bank, savings and loan association, or credit union. Check includes any
negotiable instrument that represents evidence of an obligation to pay even if
it is described on its face by another term.
(c)
"Closed" in connection with a deferred presentment service
transaction means that 1 of the following has occurred concerning each of the
customer's checks that is the basis of the deferred presentment service
transaction:
(i) The check is redeemed by the customer by
payment to the licensee of the face amount of the check in cash or payment from
a debit card that meets the requirements of section 35(11).
(ii) The check is exchanged by the licensee
for a cashier's check or cash from the customer's financial institution.
(iii) The check is deposited by the licensee
and the licensee has evidence that the person has satisfied the obligation.
(iv) The check is collected by the licensee
or its the
licensee's agent through any civil remedy available under the laws of
this state.
(v) The check is collected by means of a
repayment plan agreed on by the customer and the licensee or as the result of
credit counseling where the licensee is paid the amount agreed upon on by the
licensee under that plan.
(vi) The check is collected by the licensee
under section 35(9) and the licensee has evidence that the person has satisfied
the obligation.
(d)
"Commissioner" means the director or his
or her the director's authorized
representative.
(e)
"Customer" means an individual who inquires into the availability of
or applies for a deferred presentment service transaction or a drawer who
enters into a deferred presentment service transaction.
(f) "Database
provider" means 1 of the following:
(i) A third party provider selected by the
director under section 22 to operate the statewide database described in that
section.
(ii) If the director has not selected a third party provider under section 22, the director.
(g) Subject to
subsection (2), "deferred presentment service transaction" means a
transaction between a licensee and a customer under which the licensee agrees
to do all either of
the following:
(i) Pay to the customer an agreed-upon agreed amount
in exchange for a fee.
(ii) Hold a customer's check for a period of
time before negotiation, redemption, or presentment of the checks.
(h)
"Department" means the department of insurance and financial
services.
(i)
"Director" means the director of the department or his or her the director's
authorized representative.
(j)
"Drawee" means a bank, savings bank, savings and loan association,
credit union, or other person on which a check is drawn.
(k)
"Drawer" means a customer who enters into a deferred presentment
service transaction with a licensee.
(l) "Executive officer" means an
officer or director of a licensee or any other individual who has the authority
to participate in the direction, directly or indirectly, through 1 or more
persons, or the management or policies of a licensee.
(m) "Financial
licensing act" means this act, or any of
the financial licensing acts, as that term is defined in section 2 of the consumer
financial services act, 1988 PA 161, MCL 487.2052.
(n)
"Licensee" means a person that is licensed to engage in the business
of providing deferred presentment service transactions under this act.
(o) "Maturity
date" means the date on which a drawer's check is to be redeemed,
presented for payment, or entered into the check-clearing process in a deferred
presentment service transaction.
(p)
"Office" or "office of financial and insurance services"
means the department.
(q)
"Person" means an individual, partnership, association, corporation,
limited liability company, or other legal entity except a governmental entity.
(r)
"Redeem" means that the customer pays to the licensee an amount equal
to the face amount of a check included in a deferred presentment service
transaction, on or before the maturity date or after the check is deposited and
returned unpaid by the drawee, and the licensee returns the check to the
customer.
(2) Deferred
presentment service transaction does not include a delay in presentment of a
loan repayment check, at the request of the borrower, by a person that is
licensed or registered under any of the following:
(a) The consumer
financial services act, 1988 PA 161, MCL 487.2051 to 487.2072. , the
(b) The regulatory
loan act, 1939 PA 21, MCL 493.1 to 493.24. , the
(c) The secondary
mortgage loan act, 1981 PA 125, MCL 493.51 to 493.81. , the
(d) The motor
vehicle sales finance act, 1950 (Ex Sess) PA 27, MCL 492.101 to 492.141, 492.137a.
(e) 1984 PA
379, MCL 493.101 to 493.114. , the
(f) The money
transmission services act, 2006 PA 250, MCL 487.1001 to 487.1047. , or the
(g) The mortgage
brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651 to
445.1684.
Enacting section 1.
This amendatory act does not take effect unless Senate Bill No. 739 of the
103rd Legislature is enacted into law.