SENATE BILL No. 1162

 

 

March 16, 2006, Introduced by Senators CHERRY, OLSHOVE, SCOTT, PRUSI, BRATER, CLARK-COLEMAN, SWITALSKI, CLARKE, BASHAM, EMERSON, THOMAS, SCHAUER, BARCIA and LELAND and referred to the Committee on Banking and Financial Institutions.

 

 

 

     A bill to amend 1999 PA 276, entitled

 

"Banking code of 1999,"

 

(MCL 487.11101 to 487.15105) by adding section 4206.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4206. (1) Upon receipt of a written request from an

 

individual who is an outsourced worker or is unemployed as a result

 

of the bankruptcy of his or her employer, a bank shall allow the

 

individual to defer making payments of principal and to make

 

payments of interest only on any eligible loan made or serviced by

 

the bank, without assessment of a penalty or the accrual of

 

additional interest and without declaring a default on the loan,

 

until the first of any of the following occurs:

 

     (a) The individual sells the residential real property or

 

primary vehicle securing the eligible loan.


 

     (b) The individual obtains comparable employment.

 

     (c) A period of 12 months has elapsed.

 

     (2) As used in this section:

 

     (a) "Eligible loan" means a loan secured by a mortgage or

 

other interest in an individual's residential real property or

 

secured by a lien, security interest, or other interest in an

 

individual's primary vehicle.

 

     (b) "Outsourced worker" means an adversely affected worker, as

 

that term is defined in 20 CFR 617.3.