445.1625 Limitations on enforcement of due-on-sale clause during term of land contracts or second mortgages.

193 words·~1 min read·/mi/chapter-445/445-1625

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Sec. 5.

(1)With respect to any residential real property loan, other than a residential real property loan originated by a federal savings and loan association, a federal savings bank, a national bank, or a federally chartered credit union, if the property securing the loan was sold or transferred prior to October 15, 1982 either on any land contract which does not have a due-on-sale clause or subject to a second mortgage in favor of the seller which does not have a due-on-sale clause, then upon 1 or more subsequent sales or transfers of the property without a payoff of that land contract or second mortgage, a lender shall not enforce a due-on-sale clause in its loan contract.

(2)The limitations on enforcement of a due-on-sale clause in subsection

(1)shall remain in force only for the term of any land contracts or second mortgages in effect on October 15, 1982 not containing a due-on-sale clause or until those land contracts or second mortgages are paid off, whichever occurs first.

History: 1984, Act 351, Eff. Oct. 15, 1985