Michigan Laws 492.106 – License; application; fee; abatement in amount of license fee; expiration of license; examination fee; hourly rate and per contract rate; invoice; payment; disposition and use of fees and expenses
Current as of: 2023 | Check for updates
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(a) An application for license shall be accompanied by a license fee in the following amounts:
1. $30.00 for license as an installment seller of motor vehicles, permitting that installment seller to finance installment sales contracts made between the installment seller and an installment buyer.
Terms Used In Michigan Laws 492.106
- Administrator: means the director of the department of insurance and financial services. See Michigan Laws 492.102
- buyer: means a person that buys, hires, or leases a motor vehicle for personal, family, or household use, and not for commercial, business, or agricultural use, under an installment sale contract or a legal successor in interest to that person. See Michigan Laws 492.102
- contract: means an agreement for the retail sale of a motor vehicle, or that has a similar purpose or effect, under which part or all of the price is payable in 2 or more scheduled payments subsequent to the making of the agreement or under which the obligor undertakes to make 2 or more scheduled payments or deposits that can be used to pay part or all of the purchase price, whether or not the seller has retained a security interest in the motor vehicle or has taken collateral security for the buyer's obligation, and any extension, deferment, renewal, or other revision of that agreement. See Michigan Laws 492.102
- Contract: A legal written agreement that becomes binding when signed.
- Licensee: means a person issued a license under this act as an installment seller or a sales finance company and whose license has not expired or been surrendered or revoked, and in the plural means a person or persons licensed under 1 or both of these 2 classifications. See Michigan Laws 492.102
- Sales finance company: means a person engaged as a principal, agent, or broker in the business of financing or soliciting the financing of installment sale contracts made between other parties, and in the business of acquiring, investing in, or lending money or credit on the security of the retail seller's interest in those contracts whether by discount, purchase, or assignment of those contracts, or otherwise. See Michigan Laws 492.102
- seller: means a person engaged in the business of selling, offering for sale, hiring, or leasing motor vehicles under installment sale contracts or a legal successor in interest to that person. See Michigan Laws 492.102
- 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
2. $150.00 for the first license as a sales finance company, except financial institutions, which shall pay a fee of $35.00 for each office licensed as a sales finance office.
(b) A separate license fee of $75.00 shall be paid by each sales finance company, except financial institutions, for each additional place of business conducted by that sales finance company within the state.
(c) An abatement in the amount of the license fee shall not be made if the license is issued for less than 1 year, or if the license is surrendered, canceled, or revoked before the expiration of the license year for which issued.
(d) Each license issued under this act shall expire on July 1 annually. A renewal license fee in the same amount as that paid for the original license shall be paid annually for each respective type of license and for each licensed place of business.
(e) A licensee shall pay an examination fee for any examination of its records conducted by the administrator. The examination fee shall be the lesser of the actual hourly rate or per contract rate as established by this subdivision. An examination fee based on the per contract rate shall not be less than $150.00. Annually, the administrator shall determine and notify all licensees of the hourly rate and per contract rate at which examination fees shall be charged for all examinations conducted pursuant to this act during the calendar year. The hourly rate shall be not less than $20.00 per hour, nor more than $40.00 per hour for each examiner engaged in an examination. The per contract rate shall be not less than $0.08, nor more than $0.20 per installment sales contract. The examination fee shall be invoiced upon the completion of the examination and shall be due and payable upon receipt of the invoice by the licensee. A licensee shall not be required to pay for more than 1 examination in any 1 calendar year. An installment seller shall not be required to pay more than $200.00 for an examination unless the licensee holds its own installment sales contracts.
(f) All fees and expenses provided for in this section and in section 7(c) shall be paid into the state treasury to the credit of the financial institutions bureau, and money in this account shall be used only for the operation of the financial institutions bureau.