The bill amends the Deferred Presentment Service Transactions Act, specifically section 2, to clarify definitions and processes related to deferred presentment service transactions in Michigan. Key definitions are updated, including the terms "check," "closed," "customer," and "licensee." Notably, the bill specifies that a "check" includes any negotiable instrument representing an obligation to pay, and it outlines the conditions under which a deferred presentment service transaction is considered "closed." Additionally, the language regarding the role of the licensee and the director has been revised for clarity.

The bill also expands the definition of "deferred presentment service transaction" to include specific conditions under which a transaction may occur, while excluding certain types of transactions related to loan repayments. It introduces new legal language to replace outdated terms and clarifies the regulatory framework by listing the acts under which certain transactions do not fall under the deferred presentment service definition. The amendments are set to take effect on January 1, 2026, contingent upon the enactment of House Bill No. 5544.

Statutes affected:
House Introduced Bill: 487.2122
As Passed by the House: 487.2122