Section 451.412 - Definitions.
DEBT MANAGEMENT ACT (EXCERPT)
Act 148 of 1975
451.412 Definitions.
Sec. 2.
As used in this act:
(a) “Business of debt management” means providing or offering to provide debt management to 1 or more residents of this state.
(b) “Counselor” means an employee or agent of a licensee who engages in counseling and budget analysis functions and scheduling of debtor's funds.
(c) “Creditor” means a person for whose benefit money is being collected and disbursed by a licensee. A licensee is not a creditor for purposes of this act.
(d) “Debt management” means the planning and management of the financial affairs of a debtor and the receipt of money from the debtor for distribution to a creditor in payment or partial payment of the debtor's obligations.
(e) “Debtor” means a person from whom money is being collected for the benefit of a creditor of the debtor.
(f) “Department” means the office of financial and insurance services.
(g) “Director” means the commissioner of the department or his or her authorized representative.
(h) “Fees and charges of the licensee” means the total amount of money to be charged a debtor by the licensee, including the $25.00 initial payment and any charges for advice, materials, or referrals.
(i) “License” means a written certificate or exemption order issued by the director.
(j) “Licensee” means a person licensed under this act to perform debt management services and located inside or outside the boundaries of this state.
(k) “Office” means each location by street name, building number, city, and state where a person engages in the business of debt management.
(l) “Office manager” means an employee or owner charged with the supervision, oversight, or approval of the functions of budget analysis, counseling, or scheduling.
(m) “Person” means an individual, corporation, partnership, association, joint stock company, trust where the interests of the beneficiaries are evidenced by a security, limited liability company, or other legal entity.
(n) “Sweep arrangement” means an arrangement that provides for a temporary or permanent transfer of funds from 1 trust account to another trust account when a predetermined time, account balance, or other condition occurs or is fulfilled.
History: 1975, Act 148, Eff. Mar. 31, 1976 ;-- Am. 2000, Act 255, Imd. Eff. June 29, 2000
Compiler's Notes: For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.