487.3511 Property or casualty insurance as condition to mortgage loan.
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487.3511 Property or casualty insurance as condition to mortgage loan.
Sec. 511.
(1)Except as provided in subsection (2), a savings bank that requires a mortgagor to maintain property or casualty insurance as a condition to receiving a mortgage loan shall not require the amount of the property or casualty insurance to be greater than the replacement cost of the mortgaged building or buildings.
(2)A savings bank may require an amount of property or casualty insurance that is required of the savings bank 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 savings bank anticipate a sale, transfer, or assignment at the time the mortgage loan is made.
History: 1996, Act 354 , Imd. Eff. July 1, 1996