[No. 181.]

AN ACT to amend the title and sections thirteen, fourteen, and sixteen of act number three hundred seventeen of the public acts of nineteen hundred twenty-one, entitled "An act to license and regulate the business of making loans in sums of three hundred dollars or less, secured or unsecured, at a greater rate of interest than seven per centum per annum, prescribing the rate of interest and charge therefor, and penalties for the violation thereof, and regulating the assignment of wages or salaries, earned or to be earned, when given as security for any such loan, and to repeal act number two hundred twenty-eight of the public acts of nineteen hundred fifteen, being sections six thousand thirty-one to six thousand thirty-nine, inclusive, of the compiled laws of nineteen hundred fifteen, and all acts and parts of acts inconsistent with the provisions of this act", and to add a new section thereto to be known as section fifteen-a.

The People of the State of Michigan enact:

sections

SECTION 1. The title and sections thirteen, fourteen and Title and sixteen of act number three hundred seventeen of the public amended. acts of nineteen hundred twenty-one, entitled "An act to license and regulate the business of making loans in sums of three hundred dollars or less, secured or unsecured, at a greater rate of interest than seven per centum per annum, prescribing the rate of interest and charge therefor, and penalties for the violation thereof, and regulating the assignment of wages or salaries, earned or to be earned, when given as security for any such loan, and to repeal act number two hundred twenty-eight of the public acts of nineteen hundred fifteen, being sections six thousand thirty-one to six thousand thirty-nine, inclusive, of the compiled laws of nineteen hundred fifteen, and all acts and parts of acts inconsistent with the provisions of this act", are hereby amended, and a new section is added to said act to stand as section fifteen-a Section thereof, said title, amended sections and new section to read added. as follows:

TITLE

An Act to regulate the business of making loans in sums of three hundred dollars or less, secured or unsecured, at a greater rate of interest than seven per centum per annum, prescribing the rate of interest and charge therefor, and penalties for the violation thereof, and regulating the assignment of wages or other compensation for services, earned or to be earned, when given as security for any such loan, or as consideration for sales or assignments, and to repeal act number two hundred twenty-eight of the public

Rate of

on loans.

acts of nineteen hundred fifteen, being sections six thousand thirty-one to six thousand thirty-nine, inclusive, of the compiled laws of nineteen hundred fifteen, and all acts and parts of acts inconsistent with the provisions of this act.

Every person, co-partnership and corporation interest, etc., licensed hereunder may loan any sum of money not exceeding in amount the sum of three hundred dollars, and may charge, contract for and receive thereon interest at a rate not to exceed three and one-half per centum per month. Interest shall not be payable in advance or compounded and shall be computed on unpaid balances. In addition to the interest herein provided for, no further or other charge or amount whatsoever for any examination, service, brokerage, commission or other thing or otherwise shall be directly or indirectly charged, contracted for or received, except the lawful fees, if any, actually and necessarily paid out by the licensee to any public officer for filing or recording or releasing in any public office any instrument securing the loan, which fees may be collected when the loan is made or at any time thereafter. If interest or charges in excess of those permitted by this act shall be charged, contracted for or received, the contract of loan shall be void and the licensee shall have no right to collect or receive any principal, interest or charges whatsoever. No licensee shall, directly or indirectly, charge, contract for or receive any interest or consideration greater than seven per centum per annum upon the loan, use or forbearance of money, goods or things in action, or upon the loan, use or sale of credit, of the amount or value of more than three hundred dollars. The foregoing prohibition shall also apply to any licensee who permits any person, as borrower, or as endorser, guarantor or surety for any borrower, or otherwise, to owe, directly or contingently, or both, to the licensee at any time. the sum of more than three hundred dollars for principal. SEC. 14. Every licensee shall:

Limit.

Statement delivered to borrower.

Deliver to the borrower at the time a loan is made, a statement in the English language showing in clear and distinct terms the amount and date of the loan and of its maturity, the nature of the security, if any, for the loan, the name and address of the borrower and of the licensee, and the rate of interest charged. Upon such statement there shall be printed in English a copy of section thirteen of this act;

Give to the borrower a plain and complete receipt for all payments made on account of any such loan at the time such payments are made;

Permit payment of the loan in whole or in part prior to its maturity with interest on such payment to the date thereof; Upon repayment of the loan in full mark indelibly every paper signed by the borrower with the word "paid" or "cancelled", and release any mortgage, restore any pledge, cancel and return any note, and cancel and return any assignment given by the borrower as security.

deemed

SEC. 15-a. The payment of three hundred dollars or less in What money, credit, goods or things in action as a consideration loan. for any sale, assignment or order for the payment of wages, salary, commissions or other compensation for services, whether earned or to be earned, shall be deemed a loan within the provisions of this act secured by such assignment; and the amount by which such assigned compensation exceeds such payment shall be deemed interest upon such loan from the date of such payment to the date such compensation is payable. Such loan and such assignment shall be governed by and subject to the provisions of this act.

of wages,

etc.

SEC. 16. No assignment of or order for the payment of Assignment any salary, wages, commissions or other compensation for services earned or to be earned, given to secure any such loan shall be valid unless the amount of such loan is paid to the borrower simultaneously with its execution; nor shall any such assignment or order, or any chattel mortgage or other lien on household furniture then in the possession and use of the borrower be valid unless it be in writing signed in person by the borrower; nor, if the borrower is married, unless it be signed in person by both husband and wife: Pro- Proviso. rided, That written assent of a spouse shall not be required when husband and wife have been living separate and apart for a period of at least five months prior to such assignment, order, mortgage or lien. Under any such assignment or order for the payment of future salary, wages, commissions or other compensation for services, given as security for a loan made under this act, a sum equal to ten per centum of the bor rower's salary, wages, commissions or other compensation for services shall be collectible from the employer of the borrower by the licensee at the time of each payment of salary, wages, commissions or other compensation for services from the time that a copy of such assignment verified by the oath of the licensee or his agent, together with a similarly verified statement of the amount unpaid upon such loan, is served upon the employer.

Approved May 5, 1925.

Act amended.

Section added.

Branch

[No. 182.]

AN ACT to amend act number one hundred forty-six of the public acts of nineteen hundred nineteen, entitled "An act to protect the public health; to provide for the appointment of a state health commissioner, deputy state health commissioner and state advisory council of health; to prescribe the compensation, powers and duties thereof, the powers and duties of township, village and city health officers and health boards; and to abolish the state board of health," by adding thereto a new section to stand as section thirteen of said act.

The People of the State of Michigan enact:

SECTION 1. Act number one hundred forty-six of the public acts of nineteen hundred nineteen, entitled "An act to protect the public health; to provide for the appointment of a state health commissioner, deputy state health commissioner and state advisory council of health; to prescribe the compensation, powers and duties thereof, the powers and duties of township, village and city health officers and health boards; and to abolish the state board of health," is hereby amended by adding thereto a new section to stand as section thirteen of said act, said added section to read as follows:

SEC. 13. Subject to the approval of the state administralaboratories. tive board the state health commissioner is authorized and empowered to establish, equip and maintain such number of branch bacteriological laboratories at suitable places within the state as may be found necessary for the proper protection of the public health and the furnishing of adequate laboratory service to those entitled thereto: Provided, however, That such number of branch laboratories, including the laboratory now maintained in the upper peninsula, shall not exceed three.

Proviso.

Approved May 5, 1925.

[No. 183.]

AN ACT to authorize the conversion of the industrial home for girls at Adrian into the girls' training school, continuing said school under the control of the state corrections commission; prescribing who may be admitted thereto, the powers and duties of the officers immediately in charge of said school, the character and extent of discipline and training to be enforced and provided therein, the compensation of the officers, teachers and other assistants appointed or hired in said institution, and penalties for violations of certain provisions of this act.

The People of the State of Michigan enact:

established.

SECTION 1. There is hereby authorized and established at Girls' trainthe city of Adrian, an institution to be known and designated inished as the girls' training school for purposes and to be governed as herein prescribed and provided. The lands, buildings, equipment and appurtenances of the industrial home for girls at Adrian, are hereby set aside, conveyed and converted to the use of said girls' training school, and the name and designation of the industrial home for girls is hereby abolished and discontinued; and wherever the name industrial home for girls appears in any statute of this state, it shall be taken and deemed to mean girls' training school.

SEC. 2. Who may be admitted. All girls now attending or Who held in said industrial home for girls or paroled or apprenticed admitted. therefrom or belonging thereto, shall continue under the authority of the girls' training school according to the orders of the several courts which sent them there in the first instance; and all girls hereafter sent to said girls' training school under the provisions of act number six of the public acts of nineteen hundred seven, extra session, shall be admitted thereto according to the terms of said act, and in that respect the said girls' training school shall be deemed to be the successor to the said industrial home for girls.

SEC. 3. The said girls' training school shall be under the Control of. general control and management of the state corrections commission to the same extent as provided in act number one hundred sixty-three of the public acts of nineteen hundred twenty-one for the industrial home for girls, and as further expressly provided for in this act. The said state corrections commission shall appoint the superintendent and all other officers, teachers, attendants and assistants, subject to the approval of the governor, and shall fix their salaries, compensation and authorize the payment of their necessary expenses, subject to the approval of the state administrative board and in accordance with the accounting and budget laws, rules and regulations of the state.