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.