Bill > HB4605

This bill amends the Regulatory Loan Act to make the language gender-neutral while maintaining the core protections for borrowers. Specifically, the bill removes gendered terms like "husband and wife" and replaces them with more inclusive language such as "spouses." The bill maintains existing regulations about the validity of loan assignments and chattel mortgages, which prohibit certain types of liens on household goods. Under the proposed changes, assignments of salary, wages, or other compensation to secure a loan remain invalid, and chattel mortgages or liens on household goods are still only valid if they are in writing and personally signed by the borrower. For married borrowers, the bill continues the requirement that both spouses must sign such documents, with an exception if the spouses have been living separately for at least 5 months. Importantly, the bill is contingent on a related constitutional amendment and will only take effect if that amendment is approved. The primary purpose appears to be updating the language of the law to be more gender-inclusive while preserving the original legal protections for borrowers.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4605