HOUSE BILL No. 6175

 

June 8, 2006, Introduced by Reps. Hune and Gaffney and referred to the Committee on Insurance.

 

     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. (1)  (a)  In addition to the cost of insurance

 

premiums and travel emergency benefits authorized in  the preceding

 

section of this act  section 16, the seller of a motor vehicle

 

under an installment sale contract may require the buyer to pay

 

certain other  any of the following costs if incurred in the sale

 

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

 

     (a)  1.  Fees, payable to the state of Michigan, incurred for

 

filing a lien or encumbrances on the certificate of title to a

 


motor vehicle sold under an installment sale contract or on any

 

collateral security  thereto  taken to secure the buyer's

 

obligation under the contract.

 

     (b)  2.  Fees, payable to a public official, for filing or

 

recording and satisfying or releasing  the  an installment sale

 

contract or any instruments securing the buyer's obligation under

 

the contract.

 

     (c)  3.  Fees for notarization required in connection with the

 

filing and recording or satisfying and releasing a mortgage,

 

judgment lien, or other encumbrance.

 

     (2)  (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  any of the following costs incidental to

 

the sale of a motor vehicle and contracted for voluntarily by the

 

buyer:  as follows:

 

     (a) Fees  , payable to the state of Michigan,  incurred for

 

the purpose of registration of the motor vehicle and issuance or

 

transfer of registration plates.

 

     (b) A fee incurred for the purpose of obtaining a certificate

 

of title.

 

     (3)  (c)  The  foregoing  costs described in this section 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  

 

those costs and include  such  that amount in the principal amount

 

financed under the installment sale contract.

 

     (4)  (d) Such other costs  Costs described in this section and

 


paid or payable by the buyer shall not exceed the amount  which  

 

that the seller expends or intends to expend  therefor  for those

 

costs. Any  such costs which  money that the seller has collected

 

from the buyer for costs described in this section, or  which have

 

been  that is included in the buyer's obligation under the

 

installment sale contract  which are  and is not disbursed by the

 

seller  , as contemplated  as the parties agreed, shall be

 

immediately refunded or credited to the buyer.