The bill amends the existing law regulating the rate of interest on money in Michigan, specifically updating Section 1 of 1966 PA 326. It establishes that the lawful interest rate is set at $5.00 per $100.00 for a year, with the option for parties to agree in writing to a rate not exceeding 7% per annum. The bill also clarifies that it does not apply to certain financial instruments, such as notes or bonds issued by corporations or individuals that have been authorized by the public service commission or are regulated by other state laws. Additionally, it specifies that the act does not apply to time price differentials on credit sales or to businesses operating under the earned wage access services act.

Furthermore, the bill modifies the language regarding the legality of purchasing notes or bonds issued by borrowers not domiciled in Michigan, allowing for interest rates that are lawful under the borrower's domicile law at the time of issuance. The enactment of this amendatory act is contingent upon the passage of House Bill No. 5558. Overall, the bill aims to modernize and clarify the regulations surrounding interest rates in Michigan while ensuring certain exceptions are maintained.

Statutes affected:
House Introduced Bill: 438.31