Michigan Compiled Laws Act 21 Of 1939 Regulatory Loan Act (493.1 - 493.26)

AN ACT to define and regulate the business of making regulatory loans; to permit the licensing of persons engaged in that business; to provide for the administration of this act and for the promulgation of rules; and to prescribe penalties.

History: 1939, Act 21, Eff. Sept. 29, 1939 ;-- Am. 1947, Act 130, Eff. Oct. 11, 1947 ;-- Am. 1963, Act 103, Eff. Sept. 6, 1963 ;-- Am. 1971, Act 168, Eff. Mar. 30, 1972 ;-- Am. 1978, Act 528, Eff. Mar. 30, 1979 ;-- Am. 1980, Act 392, Eff. Mar. 31, 1981 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002

Section 493.1 Short Title; Definitions.
(1) This act shall be known and may be cited as the “regulatory loan act”. (2) As used in this act: (a) “Advertising” means...
Section 493.1a Repealed. 2001, Act 270, Imd. Eff. Jan. 11, 2002.
Compiler's Notes: The repealed section pertained to short title.
Section 493.2 Business Of Making Loans; License Required; Application For License; Oath; Form And Contents; Fees; Proof Of Net Worth.
(1) Except as otherwise provided under this act, a person shall not engage in the business of making loans of money, credit, goods, or...
Section 493.3 Licenses; Bond Of Applicant; Approval; Conditions.
The applicant, at the time of filing an application, shall also file when requested by the commissioner a bond in an amount to be...
Section 493.4 Investigation; Findings; Issuance Or Denial Of License; Notice; Transcript Of Decision And Findings.
(1) Upon the filing of the application, the payment of the fees, and the approval of the bond, the commissioner shall investigate the applicant...
Section 493.5 Licenses; Contents; Posting; Transfer; Assignment.
(1) Except as otherwise provided under this section, the license shall state the address at which the principal office of the business is to...
Section 493.6 Net Worth; Additional Bond; Filing.
(1) Every licensee shall maintain at all times net worth in the amount required under section 2. (2) If the commissioner determines at any...
Section 493.7 Changing Name Or Place Of Business; Procedure; Activities At More Than 1 Place Of Business; Ceasing To Engage In Activities Subject To Act.
(1) A licensee under this act may change its name or place of business shown on the license by giving prior written notice to...
Section 493.8 Annual Establishment Of Fees Schedule; Bond; Action For Recovery Of Fees Or Penalties; Fees Nonrefundable; Report; Disposition And Use Of Money Received.
(1) The commissioner shall annually establish the schedule of fees sufficient to pay the costs of administering this act. The fees are as follows:...
Section 493.9 Revocation, Suspension, Or Surrender Of License; Reinstatement Or Issuance Of New License; Transcript Of Order.
(1) The commissioner, upon 10 days' written notice to the licensee stating the contemplated action and the grounds for the action, and upon reasonable...
Section 493.9a Cease And Desist Order; Grounds; Notice; Failure To Appear At Hearing; Findings; Effective Date And Duration Of Order.
(1) If in the opinion of the commissioner a licensee is, has, or is about to engage in a practice that poses a threat...
Section 493.9b Investigation Or Examination By Commissioner; Complaint Or Action; Suspension Of License; Request For Hearing; Duration Of Suspension.
(1) As provided in section 10, the commissioner may investigate or conduct an examination of any person and conduct hearings as the commissioner considers...
Section 493.9c Fraud.
(1) If in the opinion of the commissioner a person has engaged in fraud, the commissioner may serve upon that person a written notice...
Section 493.9d Hearing; Decision; Findings; Judicial Review; Stay.
(1) A hearing under sections 9, 9a, and 9c shall be conducted under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201...
Section 493.9e Enforcement Of Order; Jurisdiction.
The commissioner may apply to the circuit court of Ingham county for the enforcement of any outstanding order issued under section 9, 9a, 9b,...
Section 493.9f Violation As Misdemeanor; Penalty.
Any current or former executive officer, director, agent, or control person who violates a final order issued under section 9c is guilty of a...
Section 493.9g Violation Of Order; Exceptions.
A control person who is subject to an order issued under section 9c and who meets all of the following requirements is not in...
Section 493.10 Commissioner Of State Banking Department; Authority To Investigate Business And Examine Records; Witnesses; Examination Of Licensee; Construction Of Section; Disposition Of Fees.
(1) For the purpose of investigating violations of this act or securing information lawfully required under this act, the commissioner may at any time,...
Section 493.11 Books, Accounts, And Records Of Licensee; Preservation And Accessibility; Filing Financial Statement With Commissioner; Reports.
(1) The licensee shall keep and use in the licensee's business the books, accounts, and records the commissioner may require in order to determine...
Section 493.12 Statements Or Representations By Licensee; Lien On Real Estate; Confession Of Judgment Or Power Of Attorney Prohibited; Note Or Evidence Of Indebtedness; Blanks; Discrimination On Basis Of Sex Or Marital Status Prohibited.
(1) A licensee or other person shall not advertise, print, display, publish, distribute, or broadcast or cause or permit to be advertised, printed, displayed,...
Section 493.12a False, Misleading, Deceptive, Or Irresponsible Advertising Unlawful; Definition; Requirements For Advertising.
(1) False, misleading, deceptive, or irresponsible advertising is unlawful and is defined as follows: (a) Advertising which lures, entices, induces, or tends to induce...
Section 493.12b Repealed. 1991, Act 14, Eff. Oct. 1, 1991.
Compiler's Notes: The repealed section pertained to licensee promotional plans.
Section 493.12c False, Misleading, Deceptive, Or Irresponsible Advertising; Report To Attorney General; Action To Restrain By Temporary Or Permanent Injunction; Costs; Civil Penalty; Notice To Licensee; Assurance Of Discontinuance; Violation Subject To Civil Penalty; Jurisdiction, Continuance Of Cause, And Petition For Recovery Of Civil Penalty; Effect Of Action Or Failure To Act By Commissioner.
(1) If the commissioner has probable cause to believe that a licensee has engaged, is engaged, or is about to engage in advertising that...
Section 493.12d Action To Enjoin Licensee From Advertising; Circuit Court.
A person may bring an action in the circuit court of the county in which an office of a licensee is located, or in...
Section 493.13 Limitation On Amount Of Loan And Interest Charge; Obligation Under More Than 1 Loan Contract; Computation And Payment Of Charges; Loan Processing Fee; Fees; Amount Other Than Or In Excess Of Charges Permitted By Act; Penalties; “open-end Credit” Defined.
(1) A licensee may lend money and may contract for, compute, and receive interest charges on the loan at a rate that does not...
Section 493.13a Credit Life Insurance; Other Insurance.
(1) In addition to charges allowed under section 13, at the option of the borrower, a licensee may obtain or provide 1 or both...
Section 493.14 Licensee; Duties.
A licensee shall: (a) Deliver to the borrower a disclosure statement in compliance with 12 C.F.R. part 226. (b) Give to the borrower a...
Section 493.14a Compliance With Federal Consumer Credit Protection Act.
Compliance with the requirements of the consumer credit protection act, Public Law 90-321, 82 statute 146, commonly referred to as the federal truth in...
Section 493.15 Contract In Compliance With Retail Installment Sales Act Or Home Improvement Finance Act.
A licensee may purchase a contract made in compliance with the retail installment sales act, 1966 PA 224, MCL 445.851 to 445.873, or the...
Section 493.15a Regulatory Loan Contract; Nonperformance By Borrower; Advances By Licensee; Termination Of Insurance Upon Reinstatement Of Contractual Duties By Borrower.
(1) If a regulatory loan contract contains obligations by the borrower to perform certain duties pertaining to insuring or preserving collateral and the licensee,...
Section 493.16 Repealed. 1978, Act 528, Eff. Mar. 30, 1979.
Compiler's Notes: The repealed section pertained to sale or assignment of wages as loans.
Section 493.17 Assignment Or Order For Payment Of Compensation To Secure Loan Invalid; Validity Of Chattel Mortgage Or Lien On Household Goods; Married Borrower; Signatures; Written Assent Of Spouse.
(1) An assignment of, or order for payment of, salary, wages, commissions, or other compensation for services, earned or to be earned, given to...
Section 493.18 Unlicensed Persons; Limitation On Interest, Discount, Or Consideration; Applicability Of Act To Loans Made In Another State Or Country.
(1) A person, except as authorized by this act, shall not directly or indirectly charge, contract for, or receive an interest, discount, or consideration...
Section 493.19 Violation As Misdemeanor; Penalty.
(1) A person, including a member, officer, director, agent, or employee of a licensee, who violates or participates in the violation of section 1,...
Section 493.20 Businesses Exempt From Act.
This act shall not apply to any person doing business under and as permitted by any law of this state or of the United...
Section 493.21 Enforcement Of Act; Rules.
The commissioner may promulgate rules that are necessary for the administration and enforcement of this act under the administrative procedures act of 1969, 1969...
Section 493.22 Amendments Or Repeals Of Act; Impairment Of Obligation.
This act or any part thereof may be modified, amended, or repealed so as to effect a cancellation or alteration of any license or...
Section 493.23 Repealed. 1991, Act 14, Eff. Oct. 1, 1991.
Compiler's Notes: The repealed section pertained to licensees under former act.
Section 493.24 Review Of Decisions And Regulations; Limitations; Method; Jurisdiction Of Courts.
Any applicant under section 4 of this act or any licensee, being dissatisfied with any rule, regulation, order, demand, ruling, or finding (hereinafter in...
Section 493.25 Repealed. 2001, Act 270, Imd. Eff. Jan. 11, 2002.
Compiler's Notes: The repealed section pertained to certified copy of order as evidence.
Section 493.26 Repealed. 1991, Act 14, Eff. Oct. 1, 1991.
Compiler's Notes: The repealed section contained a repealer and saving clause.

Last modified: October 10, 2016