Mich. Admin. Code R. 493.11 - Records; daily transactions; borrowers; alphabetical index; judgments

Current through Vol. 22-05, April 1, 2022

Rule 11.

(1) A licensee shall maintain a record of all transactions involving receipt or disbursement of funds by each office from which the licensee operates. The record must identify each transaction; show separately payments received on principal and interest charges; show account numbers, names of borrowers, and all amounts disbursed; and be posted and balanced daily.
(2) A licensee shall maintain, from the date of loan inception, a record for each borrower that contains all of the following information:
(a) Borrower's name and address.
(b) Loan number.
(c) Loan amount.
(d) Loan date.
(e) Rate of charge.
(f) Repayment terms.
(g) Description of security.
(h) Names of endorsers, comakers, or sureties.
(i) Amount of filing or discharge fees collected from the borrower.
(j) Marital status only if the loan is secured by household goods.
(k) Any amount received or withheld from the borrower as a premium for insurance in connection with the loan, and the period covered by such insurance policy or policies.
(l) The date and amounts of all principal payments received, interest charges received, and cash disbursements pertaining to the loan, including court costs.
(m) The date to which interest charges are paid and the unpaid balance due on the principal.
(3) A licensee shall maintain an alphabetical index identifying the name, loan number, and original loan amount of each borrower, comaker, surety, guarantor, or endorser. Information concerning a comaker, surety, guarantor, or endorser must be readily identifiable.
(4) When a note is reduced to judgment, all of the following provisions must be complied with:
(a) The loan record maintained pursuant to subrule (2) of this rule must be clearly designated a judgment account.
(b) Payments received must be identified and applied on the judgment loan record.
(c) The licensee shall retain all filings, judgments, and other documents related to the judgment.
(d) A licensee shall maintain a list of all loans reduced to judgment during the previous 25 months.
(e) A licensee that charges a borrower for court costs it incurred on a judgment account shall itemize the costs on the loan record and retain a receipt or other document substantiating the costs.
(f) A licensee shall retain a copy of the officer's return of execution issued when property is sold pursuant to a judgment.
(5) When property is taken in accordance with the terms of a security agreement or by judicial process or abandonment, the loan record must be designated clearly as a repossession account and must state when and how possession of the security was obtained and must identify the proceeds of the sale of the property. The licensee shall retain all of the following:
(a) A copy of any agreement entered into with the borrower with respect to terms of surrender.
(b) A copy of the notice of sale, together with evidence of mailing or personal delivery.
(c) An inventory of the property taken.
(d) A signed statement from the purchasers, or from the auctioneer if the sale was public, describing the collateral purchased and showing the amounts paid.
(e) Evidence that the sale was held on the date set forth in the notice of sale, including a record of any bids received.
(f) A copy of a detailed statement of final accounting sent to the borrower setting forth the disposition of the proceeds of the sale and the principal balance due on the account, if any.
(g) Paid receipts evidencing costs incurred in the repossession and sale of the security which have been charged to the borrower.
(h) A list of all loan accounts where collateral was repossessed each month during the previous 25 months.
(6) When the property is abandoned and the address of the borrower is uncertain or unknown, a notice of sale and statement of final accounting shall be sent to the last known address by registered or certified mail, return receipt requested, and the copies of the notice and statement shall be retained by the licensee.


Mich. Admin. Code R. 493.11
1983 AACS; 2020 MR 11, Eff. 6/8/2020

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