(1) In addition to the interest or finance charges that are authorized under section 4, a depository institution may charge, collect, and receive from a borrower or buyer all fees and charges that are agreed to or accepted by the borrower or buyer including those relating to making, closing, processing, disbursing, extending, committing to extend, readjusting, renewing, collecting payments upon, or otherwise servicing an extension of credit or any occurrence or transaction related to an extension of credit.
    (2) For any credit card arrangement, all fees and charges allowed by this section are considered interest.
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Terms Used In Michigan Laws 445.1857

  • Borrower: means a person who obtains an extension of credit from a regulated lender. See Michigan Laws 445.1852
  • 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. See Michigan Laws 445.1852
  • Depository institution: means a bank, savings and loan association, savings bank, or a credit union chartered under state or federal law which maintains a principal office or branch in this state. See Michigan Laws 445.1852
  • 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. See Michigan Laws 445.1852
  • Extension of credit: means a loan or credit sale made by a regulated lender. See Michigan Laws 445.1852
    (3) A depository institution shall not require a borrower or buyer to pay an excessive fee or charge.
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