The bill amends sections 219e and 219f of the Michigan Penal Code to enhance penalties and clarify definitions related to fraudulent loan applications and credit extensions. It establishes that individuals are prohibited from preparing or submitting loan applications in another person's name without authorization, as well as from receiving or possessing such applications or related instruments knowing they were obtained unlawfully. Violators of these provisions face felony charges, with penalties including imprisonment for up to four years or fines up to $2,500. The bill also specifies that certain financial institutions and their employees are exempt from liability if they lack prior knowledge of the violations.

Additionally, the bill modifies the language regarding the penalties for forwarding or possessing loan applications and instruments obtained through violations. It maintains the felony classification for such offenses but increases the potential fine for violations of section 219f to $100,000. The definition of "financial institution" is expanded to include various types of lenders and regulatory bodies, ensuring clarity in the application of the law. The enactment of this bill is contingent upon the passage of Senate Bill No. 739.

Statutes affected:
Senate Introduced Bill: 750.219