HOUSE BILL No. 5105


     October 2, 2001, Introduced by Reps. Basham, Minore, Hale, Schauer, Gieleghem, Stallworth and Pestka and referred to the Committee on
Commerce.


        A bill to amend 1995 PA 162, entitled

   "Credit reform act,"

   by amending section 4 (MCL 445.1854).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 4.  (1) Except as provided in subsection (2), a regu-

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      lated lender may charge, collect, and receive any rate of inter-

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      est or finance charge for an extension of credit not to exceed

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      25% per annum.

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           (2) A  depository institution  REGULATED LENDER may charge,

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      collect, and receive any rate of interest or finance charge for a

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      credit card arrangement NOT TO EXCEED 18% PER ANNUM.

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           (3) Except for a fee or charge provided for in section 6 or

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      7, in connection with an extension of credit made to an

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      individual for personal, family, or household purposes, the

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      interest or finance charge that is calculated on the principal


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      balance shall be computed only on the basis of the unpaid

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      balance.




















































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