Michigan Laws 445.1858 – Certain provisions in written agreement as void and unenforceable
Current as of: 2024 | Check for updates
|
Other versions
Any of the following provisions contained in a written document made in connection with an extension of credit to an individual for personal, family, or household purposes are void and unenforceable:
(a) A power of attorney to confess a judgment.
Terms Used In Michigan Laws 445.1858
- Borrower: means a person who obtains an extension of credit from a regulated lender. See Michigan Laws 445.1852
- Extension of credit: means a loan or credit sale made by a regulated lender. See Michigan Laws 445.1852
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
(b) Unless otherwise expressly provided for by law, a waiver of a borrower‘s or buyer’s rights under this act.
(c) Except as authorized by this act, an agreement by a borrower or buyer to pay a penalty. Late payment and prepayment charges are not penalties.