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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 6357 April 28, 1986 CONSTITUTIONAL LAW: Const. 1963, art 4, Sec. 24 SAVINGS AND LOAN ACT: Varied maximum interest rate limitation on motor vehicle installment loans SECONDARY MORTGAGE LOAN ACT: Varied maximum finance charge or interest rate limitation on secondary mortgage loans The Savings and Loan Act, MCL 491.718(2); MSA 23.602(718)(2), and the secondary mortgage loan act, MCL 493.71; MSA 23.568(21), which contain varied maximum interest rate or finance charge limitations on certain loans, depending upon the date of the loans, but no repeal, termination, or nonapplication provision, do not violate Const 1963, art 4, Sec. 24. Honorable Phil Arthurhultz State Senator The Capitol Lansing, Michigan 48913 You have requested my opinion whether the Savings and Loan Act of 1980, MCL 491.718(2); MSA 23.602(718)(2), and the secondary mortgage loan act, MCL 493.71; MSA 26.568(21), were enacted in violation of Const 1963, art 4, Sec. 24, since each statute contains a prospective expiration, repealer, or nonapplication provision to apply in the future. Const 1963, art 4, Sec. 24, provides that no law shall embrace more than one object, which shall be expressed in its title. The Savings and Loan Act of 1980, MCL 491.718(2); MSA 23.607(718)(2), provides for a limitation upon the interest rate charged by a savings and loan association and a federal savings and loan association upon motor vehicle installment loans. As originally enacted and as last amended by 1984 PA 359, this statute fixed the maximum interest rate for such loans made before and after certain fixed dates. The secondary mortgage loan act, MCL 493.71; MSA 25.568(21), limits persons making or negotiating secondary mortgage loans to a maximum finance charge, including interest, not to exceed a fixed rate, depending upon the date the secondary mortgage loan was executed. This statute was last amended by 1984 PA 416. These statutes were considered in OAG, 1985-1986, No 6309, p ___ (July 29, 1985). Relative to the Savings and Loan Act of 1980, OAG, 1985-1986, No 6309, stated: 'Thus, the Legislature has, since 1980, in fixing the maximum interest rate limitation which a savings and loan association may impose upon automobile installment loans, exercised its considered judgment with respect to the general level of interest rates based upon the state of the economy. At all times since the inception of MCL 491.718(2); MSA 23.602(178)(2), a maximum interest rate limitation has been operative; only the amount of the rate limitation is subject to change, depending upon the date of the installment loan, by virtue of the foregoing amendments thereto. The section has never contained a provision for its nonapplication, expiration, or repeal. Although the Legislature is free to provide for its repeal, it has not, to date, done so.' In regards to the secondary mortgage loan act, OAG, 1985-1986, No 6309, stated: 'At all times since its inception, MCL 493.71; MSA 26.568(21), has provided a maximum secondary mortgage loan interest rate limitation; only the amount of the rate limitation is subject to change, depending upon the date of the execution of the secondary mortgage loan, by virtue of the foregoing amendments thereto. The section has never contained a provision for its nonapplication, expiration, or repeal. Although the Legislature is free to provide for its repeal, it has not, to date, done so.' Since neither MCL 791.718(2); MSA 23.602(718)(2), nor MCL 493.71; MSA 26.568(21), contain any provision for repeal or termination, there is no violation of Const 1963, art 4, Sec. 24, for failure to give notice thereof. It is my opinion, therefore, that the Savings and Loan Act, MCL 491.718(2); MSA 23.602(718)(2), and the secondary mortgage loan act, MCL 493.71; MSA 26.568(21), do not violate Const 1963, art 4, Sec. 24. Frank J. Kelley Attorney General
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