(1) A regulated lender shall not require as a condition of approving a loan that the borrower contract for 1 or more additional financial services offered by the regulated lender or a particular service provider designated by the regulated lender.
    (2) This section does not preclude a regulated lender from offering a combination of 2 or more services under prices or terms that are more favorable to the borrower than the prices or terms the services would be offered separately.
lawyer at desk

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Michigan Laws 445.1859

  • Borrower: means a person who obtains an extension of credit from a regulated lender. See Michigan Laws 445.1852
  • Contract: A legal written agreement that becomes binding when signed.
  • 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
  • Person: means an individual, corporation, partnership, association, governmental entity, or any other legal entity. See Michigan Laws 445.1852
  • Regulated lender: means a depository institution, a licensee under the consumer financial services act, Act No. See Michigan Laws 445.1852
    (3) This section does not prohibit a transaction or requirement that is not prohibited by federal law.
    (4) This section does not apply to a requirement by a depository institution subject to 12 U.S.C. § 1972 or by an affiliate of 1 or more of such depository institutions.
    (5) As used in this section:
    (a) “Affiliate” means a person that controls, is controlled by, or is under common control with 1 or more depository institutions.
    (b) “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a person.
  Previous section
Next section  
 Act 162 of 1995 Contents