SENATE BILL No. 177

 

 

February 9, 2005, Introduced by Senator SCOTT 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:

 

     Sec. 2. As used in this act:

 

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

 

commissioner to be licensed under this act.

 

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

 

services of the department of  consumer and industry services  

 

labor and economic growth.

 

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

 

the financial licensing acts.  identified under subdivision (d).

 


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

 

that authorizes the licensee to engage in all of the activities

 

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

 

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

 

493.51 to 493.81, the motor vehicle sales finance act, 1950 (Ex

 

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

 

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

 

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

 

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

 

licensing acts.

 

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

 

that authorizes all of the activities permitted under a class I

 

license except for activities permitted under the sale of checks

 

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

 

under the secondary mortgage loan act, 1981 PA 125, MCL 493.51 to

 

493.81, or the mortgage brokers, lenders, and servicers licensing

 

act, 1987 PA 173, MCL 445.1651 to 445.1684.

 

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

 

financial and insurance services or an authorized representative of

 

the commissioner.

 

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

 

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

 

direction, directly or indirectly through 1 or more other persons,

 

of the management or policies of a licensee.

 

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

 

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

 

the laws of this state, another state, the District of Columbia,

 


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

 

States, whose deposits are insured by an agency of the federal

 

government.

 

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

 

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

 

president, chief financial officer, controller, compliance officer,

 

or any other similar position.

 

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

 

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

 

493.1 to 493.24; the secondary mortgage loan act, 1981 PA 125, MCL

 

493.51 to 493.81; the motor vehicle sales finance act, 1950 (Ex

 

Sess) PA 27, MCL 492.101 to 492.141; 1984 PA 379, MCL 493.101 to

 

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

 

487.916; the money transmission services act, MCL 487.1001 to

 

487.1048; and the mortgage brokers, lenders, and servicers

 

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

 

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

 

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

 

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

 

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

 

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

 

agreement or a mortgage loan subject to the mortgage brokers,

 

lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651 to

 

445.1684, or a mortgage servicing agreement or secondary mortgage

 

loan subject to the secondary mortgage loan act, 1981 PA 125, MCL

 

493.51 to 493.81, or an agreement with the mortgagor.

 

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

 


association, limited liability company, or any other legal entity.

 

     Enacting section 1.  This amendatory act does not take effect

 

unless Senate Bill No. 176                                   

 

          of the 93rd Legislature is enacted into law.