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Property/casualty insurance as condition to loan; limitation on amount required; amount as condition of sale, transfer, or assignment.

MCL 445.1602a
in effect
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445.1602a. Property/casualty insurance as condition to loan; limitation on amount required; amount as condition of sale, transfer, or assignment. Sec. 2a. (1) Except as provided in subsection (2), a credit granting institution that requires a mortgagor to maintain property/casualty insurance as a condition to receiving a mortgage loan shall not require the amount of the property/casualty insurance to be greater than the replacement cost of the mortgaged building or buildings. (2) A credit granting institution may require an amount of property/casualty insurance that is required of the credit granting institution as a condition of a sale, transfer, or assignment of all or part of the mortgage to a third party. This subsection does not require that the credit granting institution anticipate a sale, transfer, or assignment at the time the mortgage loan is made. Add. 1995, Act 214, Imd. Eff. Nov. 29, 1995
Source: Michigan Legislature (legislature.mi.gov)URL: https://legislature.mi.gov/Laws/MCL?objectName=mcl-445-1602aFetched: 10/20/2026

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