Michigan § 445.1602a Property/casualty insurance as condition to loan; limitation on amount required; amount as condition of sale, transfer, or assignment.

Michigan Statutes

§ 445.1602a — Property/casualty insurance as condition to loan; limitation on amount required; amount as condition of sale, transfer, or assignment.

Michigan § 445.1602a

Ch. 445TRADE AND COMMERCE

Act 135 of 1977MORTGAGE LENDING PRACTICES (445.1601-445.1614)

This text of Michigan § 445.1602a (Property/casualty insurance as condition to loan; limitation on amount required; amount as condition of sale, transfer, or assignment.) is published on Counsel Stack Legal Research, covering Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mich. Comp. Laws § 445.1602a (2026).

Text

MORTGAGE LENDING PRACTICES (EXCERPT) Act 135 of 1977 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 requ

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MORTGAGE LENDING PRACTICES (EXCERPT) Act 135 of 1977 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.