Michigan Laws 445.271 – Definitions
Current as of: 2023 | Check for updates
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As used in this act:
(a) “Adverse information” means information indicating that the cosigner has not complied with the contractual provisions of an obligation.
Terms Used In Michigan Laws 445.271
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Cosigner: means a natural person who renders himself or herself liable for the obligation of another person without compensation. See Michigan Laws 445.271
- Forbearance: A means of handling a delinquent loan. A
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Obligation: means an indebtedness incurred by an individual for personal, family, or household purposes. See Michigan Laws 445.271
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: means an individual, firm, partnership, association, or corporation. See Michigan Laws 445.271
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
(b) “Collection action” means requesting a cosigner to pay all or part of the obligation.
(c) “Cosigner” means a natural person who renders himself or herself liable for the obligation of another person without compensation. The term includes a person whose signature is requested as a condition to granting credit to another person, or as a condition for forbearance on collection of another person’s obligation that is in default. The term does not include a spouse whose signature is required on a credit obligation to perfect a security interest under state law, or a person who has executed a guarantee. A person who does not receive goods, services, or money in return for a credit obligation does not receive compensation within the meaning of this definition. A person is a cosigner within the meaning of this act whether or not he or she is designated as a cosigner on a credit obligation.
(d) “Obligation” means an indebtedness incurred by an individual for personal, family, or household purposes.
(e) “Person” means an individual, firm, partnership, association, or corporation.
(f) “Primary obligor” means a person, other than a cosigner, who signs an obligation as a debtor.