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JJB H05171'25 s_HB6196_INTR_1 h9cd4e
HOUSE BILL NO. 6196
A bill to amend 1950 (Ex Sess) PA 27, entitled
"Motor vehicle sales finance act,"
by amending section 5 (MCL 492.105), as amended by 1988 PA 242.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. (1) (a) Except as otherwise provided in subdivision 1
(b), under subsection (2), a bond, in the form prescribed by the 2
administrator, in the penal sum of $20,000.00 shall must accompany 3
the first application by a person for license as a sales finance 4
company and shall must apply only to the principal place of 5
July 03, 2026, Introduced by Reps. Fairbairn and Tisdel and referred to Committee on Finance.
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JJB H05171'25 s_HB6196_INTR_1 h9cd4e
business of the licensee. A bond, in the form prescribed by the 1
administrator, in the penal sum of $10,000.00 shall must accompany 2
each application by a licensee for an additional location to 3
transact business as a sales finance company. 4
(2) (b) Each A bond required under subdivision (a) shall 5
subsection (1) must be in the penal sum of $5,000.00 if the 6
applicant is licensed under any of the following: 7
(a) For 6 months after the effective date of the residential 8
mortgage licensing and supervision act, the mortgage brokers, 9
lenders, and servicers licensing act, Act No. 173 of the Public 10
Acts of 1987, being sections 445.1651 to 445.1683 of the Michigan 11
Compiled Laws, Act No. 125 of the Public Acts of 1981, being 12
sections 1987 PA 173, MCL 445.1651 to 445.1684. 13
(b) For 6 months after the effective date of the residential 14
mortgage licensing and supervision act, the secondary mortgage loan 15
act, 1981 PA 125, MCL 493.51 to 493.81. of the Michigan Compiled 16
Laws, or the 17
(c) Beginning on the effective date of the residential 18
mortgage licensing and supervision act, the residential mortgage 19
licensing and supervision act. 20
(d) The regulatory loan act, of 1963, Act No. 21 of the Public 21
Acts of 1939, being sections 493.1 to 493.26 of the Michigan 22
Compiled Laws.1939 PA 21, MCL 493.1 to 493.24. 23
(3) (c) The A bond required under subdivision (a) shall 24
subsection (1) must be executed by a surety company authorized by 25
the laws of this state to transact business within in this state. A 26
bond accompanying an application for license as a sales finance 27
company, filed by a financial institution located within in this 28
state, may be executed by a financial institution on its own 29
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JJB H05171'25 s_HB6196_INTR_1 h9cd4e
behalf, instead of a bond executed by a surety company. The bond 1
shall must be executed to the state of Michigan and shall must be 2
for the use of the this state and for any person. or persons. The 3
condition of the bond shall be must require that the licensee will 4
comply with and abide by all the provisions of this act , and all 5
the rules and regulations of the administrator lawfully issued, and 6
require that the licensee will pay to the this state, to the 7
administrator, or to any person, or persons, any and all money that 8
may become due to the this state, to the administrator, or to any 9
person or persons from the licensee under the provisions of this 10
act. A person who that is aggrieved by the misconduct of a licensee 11
and who that has recovered a judgment against a licensee, and whose 12
judgment is not satisfied within 30 days after it becomes final, 13
may maintain an action upon on the bond of the licensee in any 14
court having jurisdiction of the amount claimed. Service of process 15
for such an action under this subsection may be served anywhere 16
within in this state. 17
(4) (d) A new bond or renewal certificate shall must accompany 18
every application for renewal license and shall must be filed 19
annually at least 15 days before July 1. 20
Enacting section 1. This amendatory act does not take effect 21
unless House Bill No. 6177 (request no. H05171'25) of the 103rd 22
Legislature is enacted into law. 23