445.271 Definitions.
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445.271 Definitions.
Sec. 1.
As used in this act:
(a)"Adverse information" means information indicating that the cosigner has not complied with the contractual provisions of an obligation.
(b)"Collection action" means requesting a cosigner to pay all or part of the obligation.
(c)"Cosigner" means a natural person who renders himself or herself liable for the obligation of another person without compensation. The term includes a person whose signature is requested as a condition to granting credit to another person, or as a condition for forbearance on collection of another person's obligation that is in default. The term does not include a spouse whose signature is required on a credit obligation to perfect a security interest under state law, or a person who has executed a guarantee. A person who does not receive goods, services, or money in return for a credit obligation does not receive compensation within the meaning of this definition. A person is a cosigner within the meaning of this act whether or not he or she is designated as a cosigner on a credit obligation.
(d)"Obligation" means an indebtedness incurred by an individual for personal, family, or household purposes.
(e)"Person" means an individual, firm, partnership, association, or corporation.
(f)"Primary obligor" means a person, other than a cosigner, who signs an obligation as a debtor.
History: 1989, Act 211, Eff. Mar. 29, 1990