Trade: vehicles; duties of persons that refuse to purchase or finance motor vehicle installment sale contracts after assignment of security interests; provide for. Amends sec. 238 of 1949 PA 300 (MCL 257.238).

HB 6182 updates Michigan's vehicle code to clarify the responsibilities of lenders who refuse to finance a car loan after they have been assigned a security interest in the vehicle. Specifically, the bill requires these lenders to notify the seller, buyer, and state department of Motor Vehicles on the same day they decline to purchase the contract, and it mandates that they immediately reassign the security interest back to the original seller. Additionally, the legislation reinforces existing rules regarding how security interests are assigned, how titles are issued when liens exist, and the timelines for releasing liens once a loan is paid off. The bill also authorizes the state to require electronic processing for vehicle title liens and allows for the use of electronic receipts to transfer ownership when a loan is satisfied.