Michigan Compiled Laws
Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141)
Section 492.121 - Installment Sale Contract; Prepayment of Unpaid Time Balance; Rebate of Unearned Finance Charge.

Sec. 21.
(1) The buyer, notwithstanding the provisions of any installment sale contract, may prepay at any time all or a part of the unpaid time balance under an installment sale contract.
(2) Except as provided in section 41, when all of the time balance is liquidated before maturity by prepayment, refinancing, or termination by surrender or repossession and resale of the motor vehicle, the holder of the installment sale contract shall rebate to the buyer immediately the unearned portion of the finance charge. Rebate may be made in cash or credited to the amount due on the obligation of the buyer.
(3) The unearned portion of the finance charge to be rebated to the buyer shall be rebated by the actuarial method. The holder is not required to rebate a portion of the unearned finance charge that results in a net minimum finance charge on the contract less than $15.00. The holder is not required to rebate an unearned finance charge when the amount due, computed as set forth in this section, is less than $1.00.
History: 1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951 ;-- Am. 1957, Act 216, Eff. Sept. 27, 1957 ;-- Am. 1978, Act 98, Imd. Eff. Apr. 5, 1978 ;-- Am. 1995, Act 166, Eff. Mar. 28, 1996

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Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 492 - Installment Sales of Motor Vehicles

Act 27 of 1950 (Ex. Sess.) - Motor Vehicle Sales Finance Act (492.101 - 492.141)

Section 492.101 - Motor Vehicle Sales Finance Act; Short Title.

Section 492.102 - Definitions.

Section 492.103 - Installment Seller of Motor Vehicles; Sales Finance Company; License Required.

Section 492.104 - License; Application; Form; Contents; Appointment of Statutory Agent; Service of Process; Separate Application for Each Place of Business; Renewal.

Section 492.105 - Bond to Accompany First License Application; Bond Applicable to Principal Place of Business; Form; Penal Sum; Execution; Condition; Action on Bond; Filing New Bond or Renewal Certificate.

Section 492.106 - License; Application; Fee; Abatement in Amount of License Fee; Expiration of License; Examination Fee; Hourly Rate and per Contract Rate; Invoice; Payment; Disposition and Use of Fees and Expenses.

Section 492.106a - Receipt of Completed Application for New or Renewal License; Issuance of License Within Certain Time Period; Report.

Section 492.107 - License Certificate; Issuance; Posting; License Nontransferable and Nonassignable; Change in Business Location; Notice; Amendment of License Certificate; Fee; Operating More Than 1 Place of Business.

Section 492.108 - License; Application, Rejection, Grounds, Notice; Retention of Fee.

Section 492.109 - License; Revocation or Suspension; Grounds; Appeal.

Section 492.110 - Investigation and Examination of Records; Access to Place of Business; Required Witness Attendance; Subpoena; Forms, Rules and Regulations.

Section 492.111 - Books, Accounts and Records; Maintenance.

Section 492.112 - Installment Sale Contract; Contents; Signatures; Buyer's Copy; Notice; Form; Delivery Acknowledgment; Payments; Applicability.

Section 492.113 - Installment Sale Contract; Contents; Collateral Security; Notice of Legal Rights; Liability.

Section 492.113a - Installment Sale Transaction; Certain Payments by Seller on Behalf of Buyer.

Section 492.114 - Installment Sale Contract; Condition of Signing; Acceleration Clause; Right of Repossession; Prohibited Provisions.

Section 492.114a - Evidence of Obligation; Holder Subject to Claims and Defenses of Buyer; Limitation on Buyer's Recovery; Mandatory Provision in Installment Sale Contract; Sales to Which Section Applicable; Action to Collect Debt; Designation of Dis...

Section 492.115 - Installment Sale Contract; Sale, Transfer, Assignment; Notice to Buyer; Exception; Assignment Contracts.

Section 492.116 - Installment Sale Contract; Insurance of Vehicle, Limitation, Coercion Prohibited; Premium Cost, Buyer's Certificate, Terms of Contract, Cancellation.

Section 492.116a - Unexpired Insurance Premiums; Crediting.

Section 492.117 - Installment Sale Contract; Costs; Fees.

Section 492.118 - Finance Charge on Installment Sale Contract; Maximum Rate; Computation.

Section 492.119 - Installment Sale Contract; Extension; Refinance Charges; Maximum Rate; Cash Loans.

Section 492.120 - Installment Sale Contract; Default Charge; Maximum Rate; Computation; Collection.

Section 492.121 - Installment Sale Contract; Prepayment of Unpaid Time Balance; Rebate of Unearned Finance Charge.

Section 492.122 - Installment Sale Contract; Payments.

Section 492.122a - Truth in Lending Act; Effect of Compliance.

Section 492.123-492.127 - Repealed. 1962, Act 174, Eff. Jan. 1, 1964.

Section 492.128 - Installment Sale Contract; Buyer Furnished Statement of Account, Contents; Fee for Additional Statement.

Section 492.129 - Installment Sale Contract; Receipt, Contents; Payment by Mail.

Section 492.130 - Installment Sale Contract; Payment in Full, Release, Discharge, Instruments Delivered to Buyer.

Section 492.131 - Installment Sale Contract; Limitation on Charges; Charges Prohibited; Equity Transfer.

Section 492.132 - Installment Sale Contract; Waiver.

Section 492.133 - Installment Sale Contract; Prior Contracts.

Section 492.134 - Installment Sale Contract; Expiration, Surrender or Revocation of License.

Section 492.135 - Installment Sale Contract; Sales Outside State.

Section 492.136 - Businesses Not Affected or Impaired by Acts.

Section 492.137 - Violation of Act; Penalty.

Section 492.138 - Repealed. 1988, Act 242, Eff. Aug. 1, 1988.

Section 492.139, 492.140 - Repealed. 1964, Act 256, Eff. Aug. 28, 1964.

Section 492.141 - Optional Method of Computing Finance Charge.