Bill Text: MI SB0607 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Financial institutions; payday lending; deferred presentment service transactions act; revise definitions. Amends sec. 2 of 2005 PA 244 (MCL 487.2122). TIE BAR WITH: SB 0719'16
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2016-05-31 - Assigned Pa 0140'16 With Immediate Effect [SB0607 Detail]
Download: Michigan-2015-SB0607-Engrossed.html
SB-0607, As Passed Senate, February 4, 2016
SUBSTITUTE FOR
SENATE BILL NO. 607
A bill to amend 2005 PA 244, entitled
"Deferred presentment service transactions act,"
by amending section 2 (MCL 487.2122).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. (1) As used in this act:
(a) "Applicant" means a person that is seeking a license to
engage in the business of providing deferred presentment service
transactions under this act.
(b) "Check" means a draft that is payable on demand and drawn
on a bank, savings bank, savings and loan association, or credit
union. Check includes any negotiable instrument that represents
evidence of an obligation to pay even if it is described on its
face by another term.
(c) "Closed" in connection with a deferred presentment service
transaction means that 1 of the following has occurred concerning
each of the customer's checks that is the basis of the deferred
presentment service transaction:
(i) The check is redeemed by the customer by payment to the
licensee of the face amount of the check in cash or payment from a
debit card that meets the requirements of section 35(11).
(ii) The check is exchanged by the licensee for a cashier's
check or cash from the customer's financial institution.
(iii) The check is deposited by the licensee and the licensee
has evidence that the person has satisfied the obligation.
(iv) The check is collected by the licensee or its agent
through any civil remedy available under the laws of this state.
(v) The check is collected by means of a repayment plan agreed
upon
on by the customer and the licensee or as the result of
credit
counseling where the licensee is paid the amount agreed upon by the
licensee under that plan.
(vi) The check is collected by the licensee under section
35(9) and the licensee has evidence that the person has satisfied
the obligation.
(d)
"Commissioner" means the commissioner of the office of
financial
and insurance services director
or his or her authorized
representative.
(e) "Customer" means an individual who inquires into the
availability of or applies for a deferred presentment service
transaction or a drawer who enters into a deferred presentment
service transaction.
(f) "Database provider" means 1 of the following:
(i) A third party provider selected by the commissioner
director under section 22 to operate the statewide database
described in that section.
(ii) If the commissioner director has
not selected a third
party
provider under section 22, the commissioner.director.
(g) Subject to subsection (2), "deferred presentment service
transaction" means a transaction between a licensee and a customer
under which the licensee agrees to do all of the following:
(i) Pay to the customer an agreed-upon amount in exchange for
a fee.
(ii) Hold a customer's check for a period of time before
negotiation, redemption, or presentment of the checks.
(h) "Department" means the department of insurance and
financial services.
(i) Director" means director of the department or his or her
authorized representative.
(j) (h)
"Drawee" means a bank,
savings bank, savings and loan
association,
credit union, or other person upon on which a check is
drawn.
(k) (i)
"Drawer" means a customer
who enters into a deferred
presentment service transaction with a licensee.
(l) (j)
"Executive officer" means
an officer or director of a
licensee or any other individual who has the authority to
participate in the direction, directly or indirectly, through 1 or
more persons, or the management or policies of a licensee.
(m) (k)
"Financial licensing act"
means this act , the
consumer
financial services act, 1988 PA 161, MCL 487.2051 to
487.2072,
or any of the acts listed in
section 2(d) financial
licensing acts as defined in section 2 of the consumer financial
services act, 1988 PA 161, MCL 487.2052.
(n) (l) "Licensee"
means a person that is licensed to engage
in the business of providing deferred presentment service
transactions under this act.
(o) (m)
"Maturity date" means the
date on which a drawer's
check is to be redeemed, presented for payment, or entered into the
check-clearing process in a deferred presentment service
transaction.
(p) (n)
"Office" or "office of financial and insurance
services" means the office of financial and insurance
services of
the
department of labor and economic growth.department.
(q) (o)
"Person" means an
individual, partnership,
association, corporation, limited liability company, or other legal
entity except a governmental entity.
(r) "Redeem" means that the customer pays to the licensee an
amount equal to the face amount of a check included in a deferred
presentment service transaction, on or before the maturity date or
after the check is deposited and returned unpaid by the drawee, and
the licensee returns the check to the customer.
(2) Deferred presentment service transaction does not include
a delay in presentment of a loan repayment check, at the request of
the borrower, by a person that is licensed or registered under the
consumer financial services act, 1988 PA 161, MCL 487.2051 to
487.2072, the regulatory loan act, 1939 PA 21, MCL 493.1 to 493.24,
the secondary mortgage loan act, 1981 PA 125, MCL 493.51 to 493.81,
the motor vehicle sales finance act, 1950 (Ex Sess) PA 27, MCL
492.101
to 492.141, 1984 PA 379, MCL 493.101 to 493.114, the sale
of
checks act, 1960 PA 136, MCL 487.901 to 487.916, the money
transmission services act, 2006 PA 250, MCL 487.1001 to 487.1047,
or the mortgage brokers, lenders, and servicers licensing act, 1987
PA 173, MCL 445.1651 to 445.1684.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No. ____ or House Bill No. ____ (request no.
04766'15) of the 98th Legislature is enacted into law.
