SENATE BILL No. 1166

 

 

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

 

 

 

     A bill to amend 1988 PA 161, entitled

 

"Consumer financial services act,"

 

(MCL 487.2051 to 487.2072) by adding section 9a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 9a. (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 licensee 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 licensee, 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 occur:


 

     (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.