Section 491.702a - Property/casualty insurance as condition to loan; limitation on amount required; amount as condition of sale, transfer, or assignment.
SAVINGS AND LOAN ACT OF 1980 (EXCERPT)
Act 307 of 1980
491.702a Property/casualty insurance as condition to loan; limitation on amount required; amount as condition of sale, transfer, or assignment.
Sec. 702a.
(1) Except as provided in subsection (2), an association or federal association that requires a mortgagor to maintain property/casualty insurance as a condition to receiving a mortgage loan shall not require the amount of the property/casualty insurance to be greater than the replacement cost of the mortgaged building or buildings.
(2) An association may require an amount of property/casualty insurance that is required of the association 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 association anticipate a sale, transfer, or assignment at the time the mortgage loan is made.
History: Add. 1995, Act 199, Imd. Eff. Nov. 29, 1995