Michigan Compiled Laws
Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26)
Section 493.18 - Unlicensed Persons; Limitation on Interest, Discount, or Consideration; Applicability of Act to Loans Made in Another State or Country.

Sec. 18.
(1) A person, except as authorized by this act, shall not directly or indirectly charge, contract for, or receive an interest, discount, or consideration greater than the lender would be permitted by law to charge if the lender were not licensed under this act upon the loan, use, or forbearance of money, goods, or things in action.
(2) The prohibition specified in subsection (1) applies to a person who or which, by any device, subterfuge, or pretense charges, contracts for, or receives greater interest, consideration, or charges than authorized by this act for the loan, use, or forbearance of money, goods, or things in action or for the loan, use, or sale of credit.
(3) This act does not apply to loans legally made in another state or country by a licensee under a regulatory loan law similar in principle to this act, except that loans made by mail to Michigan residents are subject to this act.
History: 1939, Act 21, Eff. Sept. 29, 1939 ;-- Am. 1947, Act 130, Eff. Oct. 11, 1947 ;-- CL 1948, 493.18 ;-- Am. 1963, Act 103, Eff. Sept. 6, 1963 ;-- Am. 1971, Act 168, Eff. Mar. 30, 1972 ;-- Am. 1978, Act 528, Eff. Mar. 30, 1979 ;-- Am. 1995, Act 165, Eff. Mar. 28, 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Section 493.1a - Repealed. 2001, Act 270, Imd.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.