Michigan Laws 339.2667 – Conditions to licensure; bond
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Terms Used In Michigan Laws 339.2667
- Appraisal: A determination of property value.
- Appraisal: means that term as defined in section 2601. See Michigan Laws 339.2661
- Appraisal management company: means a person that provides appraisal management services. See Michigan Laws 339.2661
- Appraiser: means that term as defined in section 2601. See Michigan Laws 339.2661
- Certified appraiser: means a certified general real estate appraiser, as that term is defined in section 2601, or a certified residential real estate appraiser, as that term is defined in section 2601. See Michigan Laws 339.2661
- Controlling person: means any of the following:
(i) An owner, officer, or director of a corporation, partnership, or other business entity that offers or applies to offer appraisal management services in this state. See Michigan Laws 339.2661Fraud: Intentional deception resulting in injury to another. Nolo contendere: No contest-has the same effect as a plea of guilty, as far as the criminal sentence is concerned, but may not be considered as an admission of guilt for any other purpose. person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l Plea: In a criminal case, the defendant's statement pleading "guilty" or "not guilty" in answer to the charges, a declaration made in open court. state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o United States: shall be construed to include the district and territories. See Michigan Laws 8.3o
(1) The department shall not grant a license to a person applying for a license as an appraisal management company under this article unless all of the following are met:
(a) Any person that is a direct or indirect owner of the applicant has not had an appraiser license or certificate refused, denied, canceled, surrendered in lieu of revocation, or revoked for a substantive cause in this state or in any other state, as determined by the department. An applicant is not barred by this subsection if the license or certificate of the appraiser with an ownership interest was not revoked for a substantive cause and has been reinstated by this state or any other states in which the appraiser was licensed or certified.
(b) Any individual who owns more than 10% of the applicant meets all of the following:
(i) Has not had a license or certificate to act as an appraiser refused, denied, canceled, or revoked in this state or in any other state, unless that license or certificate was subsequently granted or reinstated.
(ii) Has not been convicted of, or entered a plea of guilty or nolo contendere to, a felony relating to the practice of appraisal or any crime involving fraud, misrepresentation, or moral turpitude.
(iii) Submits to a background investigation, as determined by the department.
(iv) Certifies to the department that he or she has never had a license or certificate to act as an appraiser refused, denied, canceled, or revoked in this state or in any other state, unless that license or certificate was subsequently granted or reinstated.
(c) The applicant designates an individual to act as the primary contact for all communication between the department and the appraisal management company. The individual designated under this subdivision must be an attorney licensed to practice law in any state or territory of the United States who is designated by the appraisal management company or an individual who meets all of the following:
(i) He or she is a controlling person of the applicant.
(ii) He or she certifies to the department that he or she has never had a certificate or a license issued by this state or any other state to act as an appraiser refused, denied, canceled, or revoked, unless that license or certificate was subsequently granted or reinstated.
(iii) He or she has not been convicted of, or entered a plea of guilty or nolo contendere to, a felony relating to the practice of appraisal or any crime involving fraud, misrepresentation, or moral turpitude.
(iv) He or she submits to a background investigation, as determined by the department.
(v) He or she has a valid license as a certified appraiser.
(d) If applicable, the applicant meets subsection (2).
(2) If an application for a license under this article is made by a person whose license under this article was previously denied, suspended, or revoked as a result of disciplinary action for violation of this article or rules promulgated under this article, the department may require, as a condition to licensure of the applicant or the removal of the suspension, that the applicant provide a surety bond to the department that meets all of the following:
(a) Is issued by a bonding company or insurance company authorized to do business in this state.
(b) Expires after the date the license expires.
(c) Is in a principal amount of not more than $5,000.00. The department shall determine the principal amount of the bond, based on the size of the applicant’s operation in this state.
(d) Is in a form satisfactory to the department, is payable to the department for the benefit of Michigan residents, and secures the performance of the obligations of the applicant in connection with the conduct of its business.
(3) If the department orders the filing of a bond under subsection (2), a person injured by an unlawful act or omission of the applicant may bring an action in a proper court on the bond for the amount of the damage suffered as a result to the extent covered by the bond.