Section 490.424 - Property and casualty insurance as condition to mortgage loan.
CREDIT UNION ACT (EXCERPT)
Act 215 of 2003
490.424 Property and casualty insurance as condition to mortgage loan.
Sec. 424.
(1) Except as provided in subsection (2), a domestic credit union that requires a mortgagor to maintain property and casualty insurance as a condition to receiving a mortgage loan shall not require an amount of property and casualty insurance that is greater than the replacement cost of the mortgaged building or buildings.
(2) A domestic credit union may require an amount of property and casualty insurance that is required of the domestic credit union 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 domestic credit union anticipate a sale, transfer, or assignment at the time the mortgage loan is made.
History: 2003, Act 215, Eff. June 1, 2004