HB-6175, As Passed Senate, June 29, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 6175

     A bill to amend 1950 (Ex Sess) PA 27, entitled

"Motor vehicle sales finance act,"

by amending section 17 (MCL 492.117).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 17. (a) In addition to the cost of insurance premiums and

travel emergency benefits authorized in the preceding section of

this act, the seller of a motor vehicle under an installment sale

contract may require the buyer to pay certain other costs incurred

in the sale of a motor vehicle under such contract as follows:

     1. Fees, payable to the state of Michigan, for filing a lien

or encumbrances on the certificate of title to a motor vehicle sold

under an installment sale contract or collateral security thereto.

     2. Fees, payable to a public official, for filing or recording

and satisfying or releasing the installment sale contract or

instruments securing the buyer's obligation.

     3. Fees for notarization required in connection with the

filing and recording or satisfying and releasing a mortgage,

judgment lien or encumbrance.

     (b) The seller of a motor vehicle under an installment sale

contract may also contract with the buyer to pay, on behalf of the

buyer, such other costs incidental to the sale of a motor vehicle

and contracted for voluntarily by the buyer as follows:

1. Fees  , payable  in amounts established by and paid to the

state of Michigan  , for titling and registration of the motor

vehicle and issuance or transfer of registration plates.

     2. If the buyer of a motor vehicle elects to title or register

the motor vehicle electronically, fees payable to any third party

authorized by the secretary of state and to the seller for

electronic titling and registration of the motor vehicle.

     (c) The foregoing costs may be charged, contracted for,

collected or received by the seller from the buyer independently of

the installment sale contract, or the seller may extend credit to

the buyer for the amount of such costs and include such amount in

the principal amount financed under the installment sale contract.

     (d) Such other costs paid or payable by the buyer shall not

exceed the amount which the seller expends or intends to expend

therefor. Any such costs which the seller has collected from the

buyer, or which have been included in the buyer's obligation under

the installment sale contract which are not disbursed by the

seller, as contemplated, shall be immediately refunded or credited

to the buyer.