487.14204 Insurance; hazard; property and casualty.
116 words·~1 min read·
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487.14204 Insurance; hazard; property and casualty.
Sec. 4204.
(1)A bank that requires a mortgagor to maintain hazard insurance as a condition of receiving a mortgage loan shall not require the amount of the hazard insurance to be greater than the replacement cost of the mortgaged building or buildings.
(2)A bank may require an amount of property and casualty insurance that is required of the bank as a condition of sale, transfer, or assignment of all or part of the mortgage to a third party. This subsection does not require that the bank anticipate a sale, transfer, or assignment at the time the mortgage is made.
History: 1999, Act 276 , Eff. Mar. 1, 2000