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Act 440 of 1976
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Act 440 of 1976

AN ACT to regulate the offer and sale of life estates, life leases, and long-term leases in nursing homes, retirement homes, homes for the aged, and foster care facilities; to prohibit fraudulent practices in relation to the offer and sale of those estates and leases; to impose regulatory duties upon the corporation and securities bureau of the department of commerce; and to provide penalties.

History: 1976, Act 440, Eff. July 1, 1977

© 2009 Legislative Council, State of Michigan

The People of the State of Michigan enact:

Section 554.801SectionShort title.
Section 554.802SectionMeanings of words and phrases.
Section 554.803SectionDefinitions.
Section 554.804SectionAdditional definitions.
Section 554.805SectionApplicability of act; offer or sale of life interest or long-term lease; making offer to sell; accepting offer to sell; facility offering long-term lease or life interest as profit or nonprofit corporation; compliance with federal law; limitation on purposes of corporations.
Section 554.806SectionFraud and deceit.
Section 554.807SectionRegistration required.
Section 554.808SectionApplication for registration; form; contents of disclosure statement; financial statement; signing and verification of application; type and spacing of contracts; untrue statement or omission of material fact; notice of filing; order of registration or rejection; notice of deficiencies.
Section 554.809SectionAlternative disclosure statement.
Section 554.810SectionLease or membership agreement; minimum provisions; termination of member; refund; providing access to adequate alternative facility.
Section 554.811SectionArbitration of dispute, claim, or grievance; waiver.
Section 554.812SectionResident as advisory member of board of directors.
Section 554.813SectionConservators or guardians.
Section 554.814SectionOrder temporarily suspending repayment of entrance fee.
Section 554.815SectionExemptions from registration requirements.
Section 554.816SectionPro forma financial plan; filing; deposit with escrow agent; surety bond or guaranty; temporary suspension of sales; entrance fees as capital in calculating solvency.
Section 554.817SectionNotice of intent to issue stop order denying, suspending, or revoking registration; grounds.
Section 554.818SectionNotifying applicant of stop order; hearing; vacating or modifying stop order.
Section 554.819SectionRight to rescind purchase of life lease or long-term lease; retention of funds in separate escrow account; moving into facility.
Section 554.820SectionRegistration of life interest or long-term lease offering.
Section 554.821SectionRegistration renewal statement; form and content; automatic renewal.
Section 554.822SectionMaterial change in information; application to amend registration; revised disclosure statement; effective date of amendment; semiannual financial statements; financial information or reports.
Section 554.823SectionAccount of sales; reports and records; examination; opinions, appraisals, and reports of experts on questions affecting interests proposed to be offered or sold; failure to furnish information; investigation; expenses; disposition of fees.
Section 554.824SectionEffect of application for registration being filed or becoming effective.
Section 554.825SectionService of process generally.
Section 554.826SectionRequirements before use of disclosure statement, pamphlet, circular, form letter, advertisement, or other sales literature or advertising communication; requirements for publication of advertisement; liability of publisher.
Section 554.827SectionConduct and qualifications of agents; rules.
Section 554.828SectionNotice of intent to issue cease and desist order; issuance; hearing; order of censure; violation; penalty; separate offenses.
Section 554.829SectionLiability to person purchasing life interest or lease; rescission as bar to action.
Section 554.830SectionJoint and several liability.
Section 554.831SectionLimitations.
Section 554.832SectionCivil liability by implication; common law or other statutory liability not limited.
Section 554.833SectionPowers of bureau; circuit court orders; contempt.
Section 554.834SectionInjunction, restraining order, or writ of mandamus; appointment of receiver or conservator; bond.
Section 554.835SectionProceedings by attorney general or prosecuting attorney.
Section 554.836SectionViolation; penalty; conduct constituting crime under other statute.
Section 554.837SectionService of process where conduct prohibited or made actionable by act or rule.
Section 554.838SectionFees.
Section 554.839SectionRules.
Section 554.840SectionPublic inspection of documents; disclosure of information.
Section 554.841SectionReproduction of public records; certified copy of document as prima facie evidence.
Section 554.842SectionDestruction of applications, orders, files, and folders as useless or obsolete; permanent record of disciplinary action; retention of reproductions.
Section 554.843SectionSubmitting information in compliance with MCL 554.808.
Section 554.844SectionEffective dates.