March 16, 2006, Introduced by Senators BARCIA, CHERRY, SCOTT and PRUSI and referred to the Committee on Banking and Financial Institutions.
A bill to amend 2003 PA 215, entitled
"Credit union act,"
(MCL 490.101 to 490.601) by adding section 425.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 425. (1) Upon receipt of a written request from an
individual who is an outsourced worker or is unemployed as a result
of the bankruptcy of his or her employer, a domestic credit union
shall allow the individual to defer making payments of principal
and to make payments of interest only on any eligible loan made or
serviced by the domestic credit union, without assessment of a
penalty or the accrual of additional interest and without declaring
a default on the loan, until the first of any of the following
occurs:
(a) The individual sells the residential real property or
primary vehicle securing the eligible loan.
(b) The individual obtains comparable employment.
(c) A period of 12 months has elapsed.
(2) As used in this section:
(a) "Eligible loan" means a loan secured by a mortgage or
other interest in an individual's residential real property or
secured by a lien, security interest, or other interest in an
individual's primary vehicle.
(b) "Outsourced worker" means an adversely affected worker, as
that term is defined in 20 CFR 617.3.