Michigan Laws 487.1811 – Financing assistance to discharge obligation to associate of licensee; transactions to which section inapplicable
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Terms Used In Michigan Laws 487.1811
- Associate: means , if used with respect to a licensee:
(i) A controlling person, director, officer, manager, agent, or advisor of that licensee. See Michigan Laws 487.1801Obligation: 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. Short-term financing assistance: means financing assistance with a term of not more than 5 years. See Michigan Laws 487.1801
A licensee shall not provide, directly or indirectly, financing assistance to discharge, or to free other money for use in discharging, in whole or in part, an obligation to an associate of that licensee. This section does not apply to a transaction effected by an associate of a licensee in the normal course of that associate’s business involving a line of credit or short-term financing assistance.