445.1591 Short title. Sec. 1. This act shall be known and may be cited as the “nonrecourse mortgage loan act”. History: 2012, Act 67, Imd. Eff. Mar. 29, 2012 Compiler’s Notes: Enacting section 1 of Act 67 of 2012 provides:”Enacting section 1. The legislature recognizes that it is inherent in a nonrecourse loan that the […]
445.1592 Definitions. Sec. 2. As used in this act: (a) “Nonrecourse carveout” means a specific exception, if any, to the nonrecourse provisions set forth in the loan documents for a nonrecourse loan that has the effect of creating, if specified events occur, personal liability of the borrower or a guarantor or other surety of the […]
445.1593 Post closing solvency covenant; prohibited use. Sec. 3. (1) A post closing solvency covenant shall not be used, directly or indirectly, as a nonrecourse carveout or as the basis for any claim or action against a borrower or any guarantor or other surety on a nonrecourse loan. (2) A provision in the documents for […]
445.1594 Loan documents not containing nonrecourse loan provisions; use. Sec. 4. This act does not prohibit a loan secured by a mortgage on real property located in this state from being fully recourse to the borrower or the guarantor, including, but not limited to, as a result of a post closing solvency covenant, if the […]
445.1595 Enforcement and interpretation of existing nonrecourse loan documents. Sec. 5. This act applies to the enforcement and interpretation of all nonrecourse loan documents in existence on, or entered into on or after, the effective date of this act. History: 2012, Act 67, Imd. Eff. Mar. 29, 2012 Compiler’s Notes: Enacting section 1 of Act […]
