Michigan Laws 566.301 – Motor vehicle installment sales contracts; definitions
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Definition of terms. That in this act unless the context or subject matter otherwise requires:
(a) The term “retail installment sale” means and includes every retail contract to sell a motor vehicle and every retail sale of a motor vehicle to any person (1) in which the cash price of the motor vehicle may be paid in installments over a period of time, and (2) in which the seller has taken or retained a security interest in the motor vehicle thereby contracted to be sold.
Terms Used In Michigan Laws 566.301
- buyer: means a person who buys or agrees to buy a motor vehicle, or any legal successor in interest of such person. See Michigan Laws 566.301
- cash price: means the price measured in dollars agreed upon in good faith by the parties as the consideration for the sale of a motor vehicle which is the subject matter of any retail installment sale, exclusive of all financing or other charges incident to such sale. See Michigan Laws 566.301
- contract: refers to and includes any transfer, conveyance, assignment or sale of a motor vehicle to any person other than a registered dealer in motor vehicles whose place of business is located in the state of Michigan or any other dealer in motor vehicles whose place of business is located outside of the state of Michigan when such transfer, conveyance, assignment or sale is made in the ordinary course of the seller's business. See Michigan Laws 566.301
- Contract: A legal written agreement that becomes binding when signed.
- 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.
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- motor vehicle: means every self-propelled device in, upon or by which any person or property is or may be transported or drawn upon a public highway, excepting devices used exclusively upon stationary rails or tracks and excepting also motorcycles, motor bicycles, farm tractors, road rollers and other machinery not designed primarily for highway transportation, but which may incidentally transport persons or property on the highway. See Michigan Laws 566.301
- 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: includes an individual, partnership, corporation and any other association. See Michigan Laws 566.301
- retail installment contract: means any written instrument which is executed in connection with any retail installment sale and includes conditional sales contracts, purchase money chattel mortgages and bailment leases retaining a security interest in the seller. See Michigan Laws 566.301
- retail installment sale: means and includes every retail contract to sell a motor vehicle and every retail sale of a motor vehicle to any person (1) in which the cash price of the motor vehicle may be paid in installments over a period of time, and (2) in which the seller has taken or retained a security interest in the motor vehicle thereby contracted to be sold. See Michigan Laws 566.301
- security interest: means a property interest in a motor vehicle which is the subject matter of a retail installment sale limited in extent to securing performance of some obligation of the retail buyer or of some third person to the retail seller and includes the interest of a mortgagee of a motor vehicle; the interest of the seller who retains title to a motor vehicle, whether or not expressed to be absolute, whenever such title is in substance retained for security only; and the interest of a bailor or lessor of a motor vehicle under any contract of bailment or leasing, by which the bailee or lessee contracts to pay as compensation a sum substantially equivalent to the value of the motor vehicle and by which it is agreed that the bailee or lessee is bound to become or has the option of becoming the owner of such motor vehicle upon full compliance with the terms of the contract. See Michigan Laws 566.301
- seller: means a person, who sells or agrees to sell a motor vehicle, or any legal successor in interest of such person. See Michigan Laws 566.301
- 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) The term “motor vehicle” means every self-propelled device in, upon or by which any person or property is or may be transported or drawn upon a public highway, excepting devices used exclusively upon stationary rails or tracks and excepting also motorcycles, motor bicycles, farm tractors, road rollers and other machinery not designed primarily for highway transportation, but which may incidentally transport persons or property on the highway.
(c) The term “security interest” means a property interest in a motor vehicle which is the subject matter of a retail installment sale limited in extent to securing performance of some obligation of the retail buyer or of some third person to the retail seller and includes the interest of a mortgagee of a motor vehicle; the interest of the seller who retains title to a motor vehicle, whether or not expressed to be absolute, whenever such title is in substance retained for security only; and the interest of a bailor or lessor of a motor vehicle under any contract of bailment or leasing, by which the bailee or lessee contracts to pay as compensation a sum substantially equivalent to the value of the motor vehicle and by which it is agreed that the bailee or lessee is bound to become or has the option of becoming the owner of such motor vehicle upon full compliance with the terms of the contract.
(d) The term “seller” means a person, who sells or agrees to sell a motor vehicle, or any legal successor in interest of such person.
(e) The term “buyer” means a person who buys or agrees to buy a motor vehicle, or any legal successor in interest of such person.
(f) The term “retail” used in connection with the term “sale” or “contract” refers to and includes any transfer, conveyance, assignment or sale of a motor vehicle to any person other than a registered dealer in motor vehicles whose place of business is located in the state of Michigan or any other dealer in motor vehicles whose place of business is located outside of the state of Michigan when such transfer, conveyance, assignment or sale is made in the ordinary course of the seller’s business.
(g) The term “retail installment contract” means any written instrument which is executed in connection with any retail installment sale and includes conditional sales contracts, purchase money chattel mortgages and bailment leases retaining a security interest in the seller.
(h) The term “cash price” means the price measured in dollars agreed upon in good faith by the parties as the consideration for the sale of a motor vehicle which is the subject matter of any retail installment sale, exclusive of all financing or other charges incident to such sale.
(i) The term “down payment” means that part of the cash price in any retail installment sale required by the retail seller to be paid at the time of the execution of the retail installment contract or prior to the delivery of possession of the motor vehicle sold.
(j) The term “finance charge” means any consideration which the retail buyer contracts to pay the retail seller for the privilege of paying the principal balance in installments over a period of time.
(k) The term “person” includes an individual, partnership, corporation and any other association.
(l) The term “finance company” as used in this act shall be deemed to include any person, firm, association or corporation engaged in the ordinary course of its business in purchasing or taking an assignment of or holding retail installment contracts.
The singular of any term shall include the plural thereof and the plural of any term shall include the singular. Each gender shall include each of the other genders.