Sec. 4.
(1) The security deposit shall be deposited in a regulated financial institution. A landlord may use the moneys so deposited for any purposes he desires if he deposits with the secretary of state a cash bond or surety bond written by a surety company licensed to do business in this state and acceptable to the attorney general to secure the entire deposits up to $50,000.00 and 25% of any amount exceeding $50,000.00. The attorney general may find a bond unacceptable based only upon reasonable criteria relating to the sufficiency of the bond, and shall notify the landlord in writing of his reasons for the unacceptability of the bond.
(2) The bond shall be for the benefit of persons making security deposits with the landlord. A person for whose benefit the bond is written or his legal representative may bring an action in the district, common pleas or municipal court where the landlord resides or does business for collection on the bond.
History: 1972, Act 348, Eff. Apr. 1, 1973 Popular Name: Landlord-Tenant Act
Structure Michigan Compiled Laws
Chapter 554 - Real and Personal Property
Act 348 of 1972 - Landlord and Tenant Relationships (554.601 - 554.616)
Section 554.601 - Definitions.
Section 554.602 - Security Deposit; Amount.
Section 554.603 - Security Deposit; Notice.
Section 554.604 - Security Deposit, Disposition; Bond.
Section 554.605 - Security Deposit as Property of Tenant.
Section 554.606 - Waiving Requirements of Act.
Section 554.607 - Security Deposit; Permissible Uses.
Section 554.608 - Inventory Checklists.
Section 554.609 - Itemized List of Damages; Check or Money Order; Contents of Notice of Damages.
Section 554.610 - Effect of Noncompliance With Notice of Damages Requirement.
Section 554.611 - Notice of Forwarding Address; Effect of Noncompliance.
Section 554.612 - Response to Notice of Damages.
Section 554.613 - Action for Damages; Retention of Security Deposit; Waiver.
Section 554.614 - Termination of Landlord's Interest; Liability for Security Deposit.