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Mich. Comp. Laws § 445.1593

Post closing solvency covenant; prohibited use.

Michigan · Michigan Compiled Laws — NONRECOURSE MORTGAGE LOAN ACT (Act 67 of 2012) · Status: effective

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Mich. Comp. Laws § 445.1593, Post closing solvency covenant; prohibited use, Michigan, version 1 as recorded 2026-08-18, yourstate.us, https://yourstate.us/provision/1362948
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(1) A post closing solvency covenant shall not be used, directly or indirectly, as a nonrecourse carveout or as the basis for any claim or action against a borrower or any guarantor or other surety on a nonrecourse loan. (2) A provision in the documents for a nonrecourse loan that does not comply with subsection (1) is invalid and unenforceable.