The bill amends the Motor Vehicle Sales Finance Act by updating the requirements for bonds that accompany applications for licenses as sales finance companies. It specifies that a bond of $20,000 must accompany the first application for a license, while a bond of $10,000 is required for each additional location. The bill also introduces a new provision that allows for a reduced bond of $5,000 for applicants licensed under certain mortgage-related acts for a limited time after the effective date of the residential mortgage licensing and supervision act.

Additionally, the bill clarifies that bonds must be executed by a surety company authorized to do business in Michigan, although financial institutions may execute their own bonds. The conditions of the bond require compliance with the act and payment of any dues to the state or affected individuals. The bill also mandates that a new bond or renewal certificate must accompany every application for license renewal, which must be filed at least 15 days before July 1 each year. The enactment of this bill is contingent upon the passage of House Bill No. 6177.

Statutes affected:
House Introduced Bill: 492.105