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MI HB5552

MI HB5552
Consumer credit: interest rates; prepayment penalties on certain mortgage loans made for business purposes; allow. Amends sec. 1c of 1966 PA 326 (MCL 438.31c).


summary

Introduced
02/19/2026
In Committee
02/19/2026
Crossed Over
Passed
Dead

Introduced Session

103rd Legislature

Bill Summary

A bill to amend 1966 PA 326, entitled"An act to regulate the rate of interest of money; to provide exceptions; to prescribe the rights of parties; and to repeal certain acts and parts of acts,"by amending section 1c (MCL 438.31c), as amended by 1990 PA 94.

AI Summary

This bill proposes changes to Michigan's laws regarding interest rates on consumer credit, specifically focusing on mortgage loans made for business purposes. It amends Section 1c of 1966 PA 326, which regulates interest rates and provides exceptions. The key provisions include allowing prepayment penalties on certain mortgage loans made for business purposes, which were previously restricted. The bill also clarifies existing rules about interest rate increases, deposit requirements, and fees for loans, particularly those secured by real property. It aims to provide more flexibility for lenders and borrowers in specific business-related mortgage transactions while maintaining protections for consumer loans.

Committee Categories

Budget and Finance

Sponsors (4)

Last Action

Bill Electronically Reproduced 02/19/2026 (on 02/24/2026)

bill text


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