Section 324.21511 - Eligibility of financial institution, land contract vendor, or local unit of government to receive money from fund for corrective action or indemnification.
NATURAL RESOURCES AND ENVIRONMENTAL PROTECTION ACT (EXCERPT)
Act 451 of 1994
324.21511 Eligibility of financial institution, land contract vendor, or local unit of government to receive money from fund for corrective action or indemnification.
Sec. 21511.
(1) Subject to subsection (2), a regulated financial institution or land contract vendor may receive money from the fund for corrective action or indemnification if, prior to the discovery of a release, the regulated financial institution makes a loan to an owner or operator or makes a loan to an approved claimant under the interest subsidy program, or a land contract vendor enters into a land contract with the owner, and subsequently the regulated financial institution or the land contract vendor takes title or assumes ownership of the petroleum underground storage tank system or the property on which it is located by foreclosure, acceptance of a deed in lieu of foreclosure, or forfeiture.
(2) A regulated financial institution or land contract vendor that meets the requirements of subsection (1) may receive money from the fund if the release was discovered on or after July 18, 1989, and upon taking title to or assuming ownership of the petroleum underground storage tank system or the property on which it is located the regulated financial institution or land contract vendor meets all of the following requirements:
(a) Within 24 hours of taking title or assuming ownership reports the release to the department of natural resources, underground storage tank division, if it has not already been reported.
(b) Within 7 days of taking title or assuming ownership comes into compliance with the registration and fee requirements of part 211 and the rules promulgated under that part.
(c) Is not the United States government.
(d) Meets the requirements of section 21510(1)(e) and (2) through (6).
(e) Meets the requirements of section 21515.
(3) A regulated financial institution or land contract vendor meeting the requirements of subsections (1) and (2) may do 1 or more of the following:
(a) Receive money from the fund for corrective action or indemnification.
(b) Accept a transfer or assignment of an approved claim.
(c) Utilize any co-pay amount provided by the owner or operator or pay the co-pay amount specified in section 21514.
(4) The state or a local unit of government that involuntarily acquires ownership or control of an underground storage tank system or the property on which it is located through bankruptcy, tax delinquency, abandonment, or other circumstances in which the state or local unit of government involuntarily acquires title or control by virtue of its governmental function may receive money from the fund as an owner or operator if the state or local unit of government meets all of the following requirements:
(a) Within 24 hours of taking title or assuming ownership reports the release to the department of natural resources, underground storage tank division, if it has not already been reported.
(b) Within 7 days of taking title or assuming ownership comes into compliance with the registration and fee requirements of part 211 and the rules promulgated under that part.
(c) Is not the United States government.
(d) Meets the requirements of section 21510(1)(e) and (2) through (6).
(e) Meets the requirements of section 21515.
However, the state or a local unit of government that seeks to receive money from the fund pursuant to this subsection is not responsible for the co-pay amount.
(5) At any time after obtaining title to property pursuant to this section, a regulated financial institution or land contract vendor may sell the property on which a claim has been approved, in a unit or in parcels and at any time and place and on any terms, but every aspect of the disposition including the method, manner, and time shall be at a price that takes into account the property's fair market value and the costs associated with holding the property and other such relevant factors. Upon sale, a regulated financial institution or land contract vendor may retain the loan balance plus interest and reasonable costs of obtaining title and maintaining or repairing the property, and 10% of the sale price as a brokerage fee, minus the co-pay amount. Upon sale by a local unit of government, the local unit of government may retain 10% of the sale price as a brokerage fee.
(6) A regulated financial institution, land contract vendor, or local unit of government that applies for reimbursement under this section shall enter into an agreement to repay the state, out of any excess proceeds of a sale, if any, pursuant to subsection (5). Upon a sale of the property, the new owner shall be able to accept an assignment of the approved claim pursuant to section 21516.
History: 1994, Act 451, Eff. Mar. 30, 1995
Popular Name: Act 451
Popular Name: NREPA