Section 491.724 - Real estate loans; taxes, assessments, insurance premiums, and similar charges; payments; assignment of life insurance as additional collateral.
SAVINGS AND LOAN ACT OF 1980 (EXCERPT)
Act 307 of 1980
491.724 Real estate loans; taxes, assessments, insurance premiums, and similar charges; payments; assignment of life insurance as additional collateral.
Sec. 724.
An association or federal association may pay taxes, assessments, insurance premiums, and other similar charges for the protection of its real estate loans. The amounts of all the payments may be added to the unpaid balance of the loan and shall be equally secured by the lien on or security interest in the property as provided in this act. An association or a federal association may require life insurance to be assigned as additional collateral upon a loan. In that event, the association or federal association shall obtain a lien upon the policy and may advance premiums on the policy, which premium advances shall be added to the unpaid balance of the loan and shall be equally secured by the lien on the property.
History: 1980, Act 307, Eff. Jan. 1, 1981