Michigan Compiled Laws
Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26)
Section 493.13a - Credit Life Insurance; Other Insurance.

Sec. 13a.
(1) In addition to charges allowed under section 13, at the option of the borrower, a licensee may obtain or provide 1 or both of the following and deduct from the principal of a loan and retain an amount equal to the premium lawfully charged by the insurance company:
(a) Credit insurance as defined in the credit insurance act, 1958 PA 173, MCL 550.601 to 550.624.
(b) Any other insurance under the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302.
(2) The insurance permitted by this section shall be in force when the loan is made. If the borrower obtains the insurance from or through a licensee, the statement required by section 14 shall show the cost of the insurance and the licensee shall provide to the borrower a copy of the policy, certificate, or other evidence of the insurance. This act does not prohibit the licensee or any employee, affiliate, subsidiary, or associate of the licensee from collecting the premium or identifiable charge for the insurance permitted by this section or from receiving and retaining any gain or other benefit resulting from the insurance. A licensee shall not require the purchase of insurance as a condition precedent to the making of a loan.
History: Add. 1963, Act 103, Eff. Sept. 6, 1963 ;-- Am. 1971, Act 168, Eff. Mar. 30, 1972 ;-- Am. 1978, Act 528, Eff. Mar. 30, 1979 ;-- Am. 1991, Act 14, Eff. Oct. 1, 1991 ;-- Am. 1994, Act 407, Eff. Mar. 30, 1995 ;-- Am. 1996, Act 184, Imd. Eff. May 3, 1996 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002 Compiler's Notes: For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.

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Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 493 - Regulatory Loans

Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26)

Section 493.1 - Short Title; Definitions.

Section 493.1a - Repealed. 2001, Act 270, Imd. Eff. Jan. 11, 2002.

Section 493.2 - Business of Making Loans; License Required; Application for License; Oath; Form and Contents; Fees; Proof of Net Worth.

Section 493.3 - Licenses; Bond of Applicant; Approval; Conditions.

Section 493.4 - Investigation; Findings; Issuance or Denial of License; Notice; Transcript of Decision and Findings.

Section 493.5 - Licenses; Contents; Posting; Transfer; Assignment.

Section 493.6 - Net Worth; Additional Bond; Filing.

Section 493.7 - Changing Name or Place of Business; Procedure; Activities at More Than 1 Place of Business; Ceasing to Engage in Activities Subject to Act.

Section 493.8 - Annual Establishment of Fees Schedule; Bond; Action for Recovery of Fees or Penalties; Fees Nonrefundable; Report; Disposition and Use of Money Received.

Section 493.9 - Revocation, Suspension, or Surrender of License; Reinstatement or Issuance of New License; Transcript of Order.

Section 493.9a - Cease and Desist Order; Grounds; Notice; Failure to Appear at Hearing; Findings; Effective Date and Duration of Order.

Section 493.9b - Investigation or Examination by Commissioner; Complaint or Action; Suspension of License; Request for Hearing; Duration of Suspension.

Section 493.9c - Fraud.

Section 493.9d - Hearing; Decision; Findings; Judicial Review; Stay.

Section 493.9e - Enforcement of Order; Jurisdiction.

Section 493.9f - Violation as Misdemeanor; Penalty.

Section 493.9g - Violation of Order; Exceptions.

Section 493.10 - Commissioner of State Banking Department; Authority to Investigate Business and Examine Records; Witnesses; Examination of Licensee; Construction of Section; Disposition of Fees.

Section 493.11 - Books, Accounts, and Records of Licensee; Preservation and Accessibility; Filing Financial Statement With Commissioner; Reports.

Section 493.12 - Statements or Representations by Licensee; Lien on Real Estate; Confession of Judgment or Power of Attorney Prohibited; Note or Evidence of Indebtedness; Blanks; Discrimination on Basis of Sex or Marital Status Prohibited; Knowingly...

Section 493.12a - False, Misleading, Deceptive, or Irresponsible Advertising Unlawful; Definition; Requirements for Advertising.

Section 493.12b - Repealed. 1991, Act 14, Eff. Oct. 1, 1991.

Section 493.12c - False, Misleading, Deceptive, or Irresponsible Advertising; Report to Attorney General; Action to Restrain by Temporary or Permanent Injunction; Costs; Civil Penalty; Notice to Licensee; Assurance of Discontinuance; Violation Subjec...

Section 493.12d - Action to Enjoin Licensee From Advertising; Circuit Court.

Section 493.13 - Limitation on Amount of Loan and Interest Charge; Obligation Under More Than 1 Loan Contract; Computation and Payment of Charges; Loan Processing Fee; Fees; Amount Other Than or in Excess of Charges Permitted by Act; Penalties; “Open...

Section 493.13a - Credit Life Insurance; Other Insurance.

Section 493.14 - Licensee; Duties.

Section 493.14a - Compliance With Federal Consumer Credit Protection Act.

Section 493.15 - Contract in Compliance With Retail Installment Sales Act or Home Improvement Finance Act.

Section 493.15a - Regulatory Loan Contract; Nonperformance by Borrower; Advances by Licensee; Termination of Insurance Upon Reinstatement of Contractual Duties by Borrower.

Section 493.16 - Repealed. 1978, Act 528, Eff. Mar. 30, 1979.

Section 493.17 - Assignment or Order for Payment of Compensation to Secure Loan Invalid; Validity of Chattel Mortgage or Lien on Household Goods; Married Borrower; Signatures; Written Assent of Spouse.

Section 493.18 - Unlicensed Persons; Limitation on Interest, Discount, or Consideration; Applicability of Act to Loans Made in Another State or Country.

Section 493.19 - Violation as Misdemeanor; Penalty.

Section 493.20 - Businesses Exempt From Act.

Section 493.21 - Enforcement of Act; Rules.

Section 493.22 - Amendments or Repeals of Act; Impairment of Obligation.

Section 493.23 - Repealed. 1991, Act 14, Eff. Oct. 1, 1991.

Section 493.24 - Review of Decisions and Regulations; Limitations; Method; Jurisdiction of Courts.

Section 493.25 - Repealed. 2001, Act 270, Imd. Eff. Jan. 11, 2002.

Section 493.26 - Repealed. 1991, Act 14, Eff. Oct. 1, 1991.