HOUSE BILL No. 4887


     September 28, 1999, Introduced by Reps. Vear, DeHart, Gieleghem and Daniels and
referred to the Committee on Insurance and Financial Services.


        A bill to amend 1980 PA 307, entitled

   "Savings and loan act of 1980,"

   (MCL 491.102 to 491.1202) by adding section 737.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 737.  IF AN ASSOCIATION REQUIRES AS A CONDITION OF PRO-

 2    VIDING A LOAN THAT THE BORROWER ESTABLISH AND DEPOSIT FUNDS INTO

 3    AN ESCROW ACCOUNT MAINTAINED BY THE ASSOCIATION, THE ASSOCIATION

 4    SHALL PAY THE SAME RATE OF INTEREST ON THE DEPOSITED FUNDS AS THE

 5    ASSOCIATION PAYS ON ITS BASIC SAVINGS DEPOSIT ACCOUNTS.














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