{"data":{"id":"us-mi/mich.-comp.-laws-438.61","jurisdiction":"us-mi","citation":"Mich. Comp. Laws § 438.61","heading":"“Business entity” and “related entity” defined; extension of credit to business entity; agreement in writing to rate of interest.","body":"Sec. 1.\n\nAs used in this act:\n\n\"Business entity\" means a corporation, trust, estate, partnership, cooperative, or association or a natural person who furnishes to the extender of the credit a sworn statement in writing specifying the type of business and business purpose for which the proceeds of the loan or other extension of credit will be used. An exemption under this act does not apply if the extender of credit has notice that the person signing the sworn statement was not engaged in the business indicated on the sworn statement.\n\n\"Related entity\" means a business entity other than a natural person whose members, owners, partners, or limited partners include a state or national chartered bank, a state or federal chartered savings bank, a state or federal chartered savings and loan association, a state or federal chartered credit union, an insurance carrier, or finance subsidiary of a manufacturing corporation.\n\nNotwithstanding Act No. 326 of the Public Acts of 1966, being sections 438.31 to 438.33 of the Michigan Compiled Laws, and Act No. 259 of the Public Acts of 1968, being sections 438.41 to 438.42 of the Michigan Compiled Laws, but subject to any other applicable law of this state or of the United States which regulates the rate of interest, it is lawful in connection with an extension of credit to a business entity by a state or national chartered bank, a state or federal chartered savings bank, a state or federal chartered savings and loan association, a state or federal chartered credit union, insurance carrier, finance subsidiary of a manufacturing corporation, or a related entity for the parties to agree in writing to any rate of interest.\n\nNotwithstanding Act No. 326 of the Public Acts of 1966, it is lawful in connection with an extension of credit to a business entity by any person other than a state or nationally chartered bank, a state or federal chartered savings bank, a state or federal chartered savings and loan association, a state or federal chartered credit union, insurance carrier, finance subsidiary of a manufacturing corporation, or a related entity for the parties to agree in writing to any rate of interest not exceeding the rate allowed under Act No. 259 of the Public Acts of 1968.","path":["MI Code","Chapter 438","Act Act-52-of-1970"],"source_url":"https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-438-61","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:31Z","sha256":"325a89a49176f294d7e159d2da6ae010fd78005c331880e1329d1575894defcd","source_id":"us-mi","stale":false,"prev":"us-mi/mich.-comp.-laws-438.33","next":"us-mi/mich.-comp.-laws-438.1"},"notice":"GroundRules: Original legal text. Not legal advice."}