SENATE BILL No. 1164

 

 

March 16, 2006, Introduced by Senator CLARK-COLEMAN and referred to the Committee on Banking and Financial Institutions.

 

 

 

     A bill to amend 1980 PA 307, entitled

 

"Savings and loan act of 1980,"

 

(MCL 491.102 to 491.1202) by adding section 719.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 719. (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, an association 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 association, 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.