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Michigan Legislature
Michigan Compiled Laws Complete Through PA 93 of 2019
House: Adjourned until Tuesday, December 3, 2019 1:30:00 PM
Senate: Adjourned until Tuesday, December 3, 2019 10:00:00 AM

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Act 27 of 1950 (Ex. Sess.)
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Act 27 of 1950 (Ex. Sess.)

AN ACT defining and regulating certain installment sales of motor vehicles; prescribing the conditions under which such sales may be made and regulating the financing thereof; regulating and licensing persons engaged in the business of making or financing such sales; prescribing the form, contents and effect of instruments used in connection with such sales and the financing thereof; prescribing certain rights and obligations of buyers, sellers, persons financing such sales and others; limiting charges in connection with such instruments and fixing maximum interest rates for delinquencies, extensions and loans; regulating insurance in connection with such sales; regulating repossessions, redemptions, resales and deficiency judgments and the rights of parties with respect thereto; authorizing extensions, loans and forbearances related to such sales; authorizing investigations and examinations of persons engaged in the business of making or financing such sales; transferring certain powers and duties with respect to finance companies to the commissioner of the financial institutions bureau; and prescribing penalties.

History: 1950, Ex. Sess., Act 27, Eff. Mar. 31, 1951 ;-- Am. 1970, Act 114, Imd. Eff. July 23, 1970
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.

© 2017 Legislative Council, State of Michigan

The People of the State of Michigan enact:

Section 492.101SectionMotor vehicle sales finance act; short title.
Section 492.102SectionDefinitions.
Section 492.103SectionInstallment seller of motor vehicles; sales finance company; license required.
Section 492.104SectionLicense; application; form; contents; appointment of statutory agent; service of process; separate application for each place of business; renewal.
Section 492.105SectionBond 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 492.106SectionLicense; 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 492.106aSectionReceipt of completed application for new or renewal license; issuance of license within certain time period; report.
Section 492.107SectionLicense 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 492.108SectionLicense; application, rejection, grounds, notice; retention of fee.
Section 492.109SectionLicense; revocation or suspension; grounds; appeal.
Section 492.110SectionInvestigation and examination of records; access to place of business; required witness attendance; subpoena; forms, rules and regulations.
Section 492.111SectionBooks, accounts and records; maintenance.
Section 492.112SectionInstallment sale contract; contents; signatures; buyer's copy; notice; form; delivery acknowledgment; payments; applicability.
Section 492.113SectionInstallment sale contract; contents; collateral security; notice of legal rights; liability.
Section 492.113aSectionInstallment sale transaction; certain payments by seller on behalf of buyer.
Section 492.114SectionInstallment sale contract; condition of signing; acceleration clause; right of repossession; prohibited provisions.
Section 492.114aSectionEvidence 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 disinterested third party to receive payments; amount and distribution of payments.
Section 492.115SectionInstallment sale contract; sale, transfer, assignment; notice to buyer; exception; assignment contracts.
Section 492.116SectionInstallment sale contract; insurance of vehicle, limitation, coercion prohibited; premium cost, buyer's certificate, terms of contract, cancellation.
Section 492.116aSectionUnexpired insurance premiums; crediting.
Section 492.117SectionInstallment sale contract; costs; fees.
Section 492.118SectionFinance charge on installment sale contract; maximum rate; computation.
Section 492.119SectionInstallment sale contract; extension; refinance charges; maximum rate; cash loans.
Section 492.120SectionInstallment sale contract; default charge; maximum rate; computation; collection.
Section 492.121SectionInstallment sale contract; prepayment of unpaid time balance; rebate of unearned finance charge.
Section 492.122SectionInstallment sale contract; payments.
Section 492.122aSectionTruth in lending act; effect of compliance.
Section 492.123-492.127SectionRepealed. 1962, Act 174, Eff. Jan. 1, 1964.
Section 492.128SectionInstallment sale contract; buyer furnished statement of account, contents; fee for additional statement.
Section 492.129SectionInstallment sale contract; receipt, contents; payment by mail.
Section 492.130SectionInstallment sale contract; payment in full, release, discharge, instruments delivered to buyer.
Section 492.131SectionInstallment sale contract; limitation on charges; charges prohibited; equity transfer.
Section 492.132SectionInstallment sale contract; waiver.
Section 492.133SectionInstallment sale contract; prior contracts.
Section 492.134SectionInstallment sale contract; expiration, surrender or revocation of license.
Section 492.135SectionInstallment sale contract; sales outside state.
Section 492.136SectionBusinesses not affected or impaired by acts.
Section 492.137SectionViolation of act; penalty.
Section 492.138SectionRepealed. 1988, Act 242, Eff. Aug. 1, 1988.
Section 492.139, 492.140SectionRepealed. 1964, Act 256, Eff. Aug. 28, 1964.
Section 492.141SectionOptional method of computing finance charge.
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