SENATE BILL No. 1395

 

 

September 15, 2004, Introduced by Senators SCOTT, BRATER, OLSHOVE, JACOBS, CLARKE, BASHAM, SCHAUER, LELAND, CHERRY, EMERSON, PRUSI and BARCIA and referred to the Committee on Banking and Financial Institutions.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1988 PA 161, entitled                                             

                                                                                

    "Consumer financial services act,"                                          

                                                                                

    by amending section 2 (MCL 487.2052), as amended by 2002 PA 390.            

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 2.  As used in this act:                                               

                                                                                

2       (a) "Applicant" means a person that has applied to the                      

                                                                                

3   commissioner to be licensed under this act.                                 

                                                                                

4       (b) "Bureau" means the office of financial and insurance                    

                                                                                

5   services of the department of  consumer and industry services               

                                                                                

6   labor and economic growth.                                                  

                                                                                

7       (c) "Business activity" means any activity regulated by any                 

                                                                                

8   of the financial licensing acts.  identified under subdivision              

                                                                                

9   (d).                                                                        

                                                                                

10      (d) "Class I license" means a license issued under this act                 

                                                                                

11  that authorizes the licensee to engage in all of the activities             

                                                                                


                                                                                

1   permitted under  the regulatory loan act of 1963, 1939 PA 21, MCL           

                                                                                

2   493.1 to 493.25, the secondary mortgage loan act, 1981 PA 125,              

                                                                                

3   MCL 493.51 to 493.81, the motor vehicle sales finance act, 1950             

                                                                                

4   (Ex Sess) PA 27, MCL 492.101 to 492.141, 1984 PA 379, MCL 493.101           

                                                                                

5   to 493.114, the sale of checks act, 1960 PA 136, MCL 487.901 to             

                                                                                

6   487.916, or the mortgage brokers, lenders, and servicers                    

                                                                                

7   licensing act, 1987 PA 173, MCL 445.1651 to 445.1684  any of the            

                                                                                

8   financial licensing acts.                                                   

                                                                                

9       (e) "Class II license" means a license issued under this act                

                                                                                

10  that authorizes all of the activities permitted under a class I             

                                                                                

11  license except for activities permitted under the sale of checks            

                                                                                

12  act, 1960 PA 136, MCL 487.901 to 487.916, loan servicing                    

                                                                                

13  activities under the secondary mortgage loan act, 1981 PA 125,              

                                                                                

14  MCL 493.51 to 493.81, or the mortgage brokers, lenders, and                 

                                                                                

15  servicers licensing act, 1987 PA 173, MCL 445.1651 to 445.1684.             

                                                                                

16      (f) "Commissioner" means the commissioner of the office of                  

                                                                                

17  financial and insurance services or an authorized representative            

                                                                                

18  of the commissioner.                                                        

                                                                                

19      (g) "Control person" means a director or executive officer of               

                                                                                

20  a licensee or a person who has the authority to participate in              

                                                                                

21  the direction, directly or indirectly through 1 or more other               

                                                                                

22  persons, of the management or policies of a licensee.                       

                                                                                

23      (h) "Depository financial institution" means a bank, savings                

                                                                                

24  and loan association, savings bank, or credit union organized               

                                                                                

25  under the laws of this state, another state, the District of                

                                                                                

26  Columbia, the United States, or a territory or protectorate of              

                                                                                

27  the United States, whose deposits are insured by an agency of the           


                                                                                

1   federal government.                                                         

                                                                                

2       (i) "Executive officer" means an officer, member, or partner                

                                                                                

3   of a licensee, including chief executive officer, president, vice           

                                                                                

4   president, chief financial officer, controller, compliance                  

                                                                                

5   officer, or any other similar position.                                     

                                                                                

6       (j) "Financial licensing acts" means  the acts listed in                    

                                                                                

7   subdivision (d)  this act; the regulatory loan act, 1939 PA 21,             

                                                                                

8   MCL 493.1 to 493.24; the secondary mortgage loan act, 1981 PA               

                                                                                

9   125, MCL 493.51 to 493.81; the motor vehicle sales finance act,             

                                                                                

10  1950 (Ex Sess) PA 27, MCL 492.101 to 492.141; 1984 PA 379, MCL              

                                                                                

11  493.101 to 493.114; the sale of checks act, 1960 PA 136, MCL                

                                                                                

12  487.901 to 487.916; the money transmission services act, MCL                

                                                                                

13  487.1001 to 487.1048; and the mortgage brokers, lenders, and                

                                                                                

14  servicers licensing act, 1987 PA 173, MCL 445.1651 to 445.1684.             

                                                                                

15      (k) "Licensee" means a person that is licensed under this                   

                                                                                

16  act.                                                                        

                                                                                

17                                                                               (l) "Loan servicing activities" means the collection or                             

                                                                                

18  remittance for a lender, noteowner, noteholder, or the licensee's           

                                                                                

19  own account of 4 or more installment payments of the principal,             

                                                                                

20  interest, or an amount placed in escrow under a mortgage                    

                                                                                

21  servicing agreement or a mortgage loan subject to the mortgage              

                                                                                

22  brokers, lenders, and servicers licensing act, 1987 PA 173, MCL             

                                                                                

23  445.1651 to 445.1684, or a mortgage servicing agreement or                  

                                                                                

24  secondary mortgage loan subject to the secondary mortgage loan              

                                                                                

25  act, 1981 PA 125, MCL 493.51 to 493.81, or an agreement with the            

                                                                                

26  mortgagor.                                                                  

                                                                                

27      (m) "Person" means an individual, corporation, partnership,                 


                                                                                

1   association, limited liability company, or any other legal                  

                                                                                

2   entity.                                                                     

                                                                                

3       Enacting section 1.  This amendatory act does not take                      

                                                                                

4   effect unless Senate Bill No. 1393                                          

                                                                                

5                          of the 92nd Legislature is enacted into              

                                                                                

6   law.