445.1621 Definitions. Sec. 1. As used in this act: (a) “Assumed” means transfers of real property subject to a real property loan by assumptions, land contracts, wrap-around loans, or transfers subject to the mortgage or similar lien, and other like transfers. (b) “Blended rate period” means a period of time commencing on the date that […]
445.1622 Enforcement of due-on-sale clause generally. Sec. 2. Except for a residential window period loan, a lender may enforce a due-on-sale clause in a real property loan in accordance with the terms of the loan contract. A lender shall enforce a due-on-sale clause in a residential window period loan only in accordance with sections 3 […]
445.1623 Procedure before sale or transfer of property securing residential window period loan containing due-on-sale clause; fees; grounds for enforcement of due-on-sale clause; failure to follow procedure. Sec. 3. (1) Before a sale or transfer of property securing a residential window period loan, which contains a due-on-sale clause, the following procedure shall be followed: (a) […]
445.1624 Amendment of loan contract; rate of interest; monthly payments of principal and interest; execution, delivery, and effective date of amendment; lien priority; extending term of loan. Sec. 4. (1) If a lender is not entitled to enforce a due-on-sale clause in a residential window period loan under the procedures established in section 3, the […]
445.1625 Limitations on enforcement of due-on-sale clause during term of land contracts or second mortgages. Sec. 5. (1) With respect to any residential real property loan, other than a residential real property loan originated by a federal savings and loan association, a federal savings bank, a national bank, or a federally chartered credit union, if […]
445.1626 Circumstances under which enforcement prohibited. Sec. 6. A lender shall not enforce a due-on-sale clause in a residential real property loan in any circumstances under which enforcement is prohibited under section 341(d) of the Garn-St. Germain depository institutions act of 1982, 12 U.S.C. 1701j-3, as currently in force. History: 1984, Act 351, Eff. Oct. […]
445.1626a Consent to sale or transfer of real property subject to residential window period loan containing due-on-sale clause. Sec. 6a. Nothing in this act shall be construed to prohibit a lender, either before or after making a determination of the creditworthiness of a proposed buyer or transferee, from consenting in writing to a sale or […]
445.1627 Contract for sale or transfer of residential property subject to mortgage; provisions in boldface type. Sec. 7. Each contract for the sale or transfer of residential property which is subject to a mortgage shall provide in boldface type substantially as follows: “Seller understands that consummation of the sale or transfer of the property described […]
445.1628 Violation by lender; liability; action to recover civil fine; prohibited conduct by licensee; liability for civil fine; revocation of license; action for declaratory judgment or injunction; action for actual damages and attorneys’ fees. Sec. 8. (1) A lender who knowingly enforces or attempts to enforce a due-on-sale clause in violation of this act shall […]
445.1629 Effective date. Sec. 9. This act shall take effect October 15, 1985. History: 1984, Act 351, Eff. Oct. 15, 1985
