Property/casualty Insurance as Condition to Loan; Limitation on Amount Required; Amount as Condition of Sale, Transfer, or Assignment.

Checkout our iOS App for a better way to browser and research.

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.

History: Add. 1995, Act 214, Imd. Eff. Nov. 29, 1995


Download our app to see the most-to-date content.