Michigan Laws 451.412 – Definitions
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Terms Used In Michigan Laws 451.412
- Business of debt management: means providing or offering to provide debt management to 1 or more residents of this state. See Michigan Laws 451.412
- Certified counselor: means an individual who is certified by a training program or certifying organization, approved by the director, that authenticates the competence of individuals who provide education and assistance to other individuals in connection with debt counseling and financial counseling functions. See Michigan Laws 451.412
- 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.
- Creditor: means a person for whose benefit a licensee collects and disperses money. See Michigan Laws 451.412
- Debt management: means the planning and management of the financial affairs of a debtor and the receipt of money from the debtor for distribution to 1 or more of the debtor's creditors in payment or partial payment of the debtor's obligations. See Michigan Laws 451.412
- Debtor: means a person from which money is collected for the benefit of a creditor of the debtor. See Michigan Laws 451.412
- Department: means the department of insurance and financial services. See Michigan Laws 451.412
- Director: means the director of the department or his or her authorized representative. See Michigan Laws 451.412
- Licensee: means a person that is licensed, or is required to be licensed, under this act to perform debt management services and is located inside or outside the boundaries of this state. See Michigan Laws 451.412
- 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.
- 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, corporation, partnership, association, joint stock company, trust if the interests of the beneficiaries are evidenced by a security, limited liability company, or other legal entity. See Michigan Laws 451.412
- 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
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
As used in this act:
(a) “Business of debt management” means providing or offering to provide debt management to 1 or more residents of this state.
(b) “Certified counselor” means an individual who is certified by a training program or certifying organization, approved by the director, that authenticates the competence of individuals who provide education and assistance to other individuals in connection with debt counseling and financial counseling functions.
(c) “Counselor” means a certified counselor who is an employee or agent of a licensee who engages in financial counseling and debt counseling functions.
(d) “Creditor” means a person for whose benefit a licensee collects and disperses money. The term does not include a licensee.
(e) “Debt management” means the planning and management of the financial affairs of a debtor and the receipt of money from the debtor for distribution to 1 or more of the debtor’s creditors in payment or partial payment of the debtor’s obligations.
(f) “Debtor” means a person from which money is collected for the benefit of a creditor of the debtor.
(g) “Debtor’s obligation” means any current or past-due monetary obligation of the debtor, including, but not limited to, amounts owed for payment of credit cards, utilities, mortgages, student loans, home equity loans, personal loans, judgments, garnishments, property taxes, rent, or vehicle loans or leases or any other obligation whether secured or unsecured or whether or not the obligation has a principal and interest component.
(h) “Department” means the department of insurance and financial services.
(i) “Director” means the director of the department or his or her authorized representative.
(j) “Fair share program” means a program in which voluntary contributions are made by some creditors to a licensee based on a percentage of the amount disbursed by the licensee on behalf of a debtor.
(k) “Fees and charges of the licensee” means the total amount of money charged a debtor by a licensee, including the $50.00 initial payment and any charges for advice, credit reports, educational materials and resources, or referrals.
(l) “License” means a written certificate or exemption order issued by the director under this act.
(m) “Licensee” means a person that is licensed, or is required to be licensed, under this act to perform debt management services and is located inside or outside the boundaries of this state.
(n) “Locator service” means a telephone service that automatically connects callers to a network of member service providers, based on geographic location or another parameter.
(o) “Office” means each location, described by street name, building number, city, and state, where a person engages in the business of debt management.
(p) “Person” means an individual, corporation, partnership, association, joint stock company, trust if the interests of the beneficiaries are evidenced by a security, limited liability company, or other legal entity.
(q) “Sweep arrangement” means an arrangement that provides for a temporary or permanent transfer of funds from 1 trust account to another trust account when a predetermined time, account balance, or other condition occurs or is fulfilled.