Michigan Laws 493.14 – Licensee; duties
Current as of: 2024 | Check for updates
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A licensee shall:
(a) Deliver to the borrower a disclosure statement in compliance with 12 C.F.R. part 226.
Terms Used In Michigan Laws 493.14
- Contract: A legal written agreement that becomes binding when signed.
- Licensee: means a person licensed or required to be licensed under this act. See Michigan Laws 493.1
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(b) Give to the borrower a plain and complete receipt for cash payments made on account of a loan at the time the payments are made, specifying the amount applied to charges and the amount, if any, applied to principal, and stating the unpaid principal balance of the loan. An unitemized receipt may be given temporarily and within 30 days a receipt as prescribed above delivered or mailed.
(c) Permit payment to be made in advance in any amount on any contract of loan at any time during regular business hours, but the licensee may apply that payment first to all charges in full at the agreed rate up to the date of the payment.
(d) Upon repayment of the loan in full, mark plainly every obligation and security signed by the borrower with the word “Paid” or “Canceled”, and release any mortgage, restore any pledge, cancel and return any note, and cancel and return any assignment given to the licensee by the borrower.