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#1538567 - 04/21/11 01:23 PM HELOC - First Advance
3 yrs to go Offline
New Poster
Joined: Mar 2011
Posts: 24
It recently came to our attention that Michigan Consumer Finance Bulletin 1986-1 addresses the first advance on a line of credit. It states

"In cases where a line of credit or open-end loan is being established, the $3,000 minimum loan amount applies to the initial draw on the line of credit loan."

Our questions are
1) Have you included this requirement in your note/agreement?
2) Do you monitor the account to ensure the first advance is $3,000?

Thanks

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#1538740 - 04/21/11 03:42 PM Re: HELOC - First Advance 3 yrs to go
Bartman Offline
Diamond Poster
Bartman
Joined: Oct 2000
Posts: 1,191
Springfield
I don't think this applies to us anymore, particularly given the changes to state law brought about by the 1999 Banking Code. To answer you specifically, 1) we have not included such restrictions in our note; and 2) we don't monitor for a minimum first advance. (Both my banks are state chartered, non-Fed members...)

Is your bank a member of the Financial Institutions Compliance Cooperative? Search under Bodman Law in Cheboygan.
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Opinions are Bartman's, not those of my employer. "A noble spirit embiggens the smallest man."

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