| 1 | 1 | | HOUSE BILL NO. 4814 A bill to amend 1961 PA 236, entitled "Revised judicature act of 1961," by amending sections 1410, 2005, 2162, 2807, 3344, 5451, 6023a, and 6131 (MCL 600.1410, 600.2005, 600.2162, 600.2807, 600.3344, 600.5451, 600.6023a, and 600.6131), section 2162 as amended by 2001 PA 11, section 2807 as added by 2004 PA 136, section 5451 as amended by 2012 PA 451, and section 6023a as added by 2004 PA 575. the people of the state of michigan enact: Sec. 1410. If 2 person individuals have lived together as husband and wife, spouses and a legal impediment existed to the marriage of either of the persons, individuals, their issue and the person individual that entered the relation in the good faith good-faith belief that the marriage was lawful are entitled to the same damages in a civil action as though no such impediment existed, when if the other of such persons the individuals or their issue is injured or dies as a result of the negligent act or omission of another. Sec. 2005. No A suit may not be brought against husband and wife, an individual and the individual's spouse, jointly, or against the husband spouse alone, for any tort of the wife, individual, unless such the tort was committed under such circumstances as to render them both liable. Sec. 2162. (1) In a civil action or administrative proceeding, a husband shall spouse may not be examined as a witness for or against his wife or her spouse without her the spouse's consent, or a wife for or against her husband without his consent, except as provided in subsection (3). (2) In a criminal prosecution, a husband shall spouse may not be examined as a witness for or against his wife or her spouse without his the spouse's consent, or a wife for or against her husband without her consent, except as provided in subsection (3). (3) The spousal privileges established in subsections (1) and (2) and the confidential communications privilege established in subsection (7) do not apply in any of the following: (a) In a suit for divorce, separate maintenance, or annulment. (b) In a prosecution for bigamy. (c) In a prosecution for a crime committed against a child of either or both or a crime committed against an individual who is younger than 18 years of age. (d) In a cause of action that grows out of a personal wrong or injury done by one to the other or that grows out of the refusal or neglect to furnish the spouse or children with suitable support. (e) In a case of desertion or abandonment. (f) In a case in which the husband or wife spouse is a party to the record in a suit, an action , or proceeding if the title to the separate property of the husband or wife spouse called or offered as a witness, or if the title to property derived from, through, or under the husband or wife spouse called or offered as a witness, is the subject matter in controversy or litigation in the suit, action , or proceeding, in opposition to the claim or interest of the other spouse, who is a party to the record in the suit, action , or proceeding. In all such cases, the husband or wife spouse who makes the claim of title, or under or from whom the title is derived, shall be is as competent to testify in relation to the separate property and the title to the separate property without the consent of the husband or wife, other spouse, who is a party to the record in the suit, action , or proceeding, as though the marriage relation did not exist. (4) Except as otherwise provided in subsections (5) and (6), a married person individual or a person an individual who has been married previously shall may not be examined in a civil action or administrative proceeding as to any communication made between that person individual and his or her spouse or former spouse during the marriage. (5) A married person individual may be examined in a civil action or administrative proceeding, with his or her consent, as to any communication made between that person individual and his or her spouse during the marriage regarding a matter described in subsection (3). (6) A person An individual who has been married previously may be examined in a civil action or administrative proceeding, with his or her consent, as to any communication made between that person individual and his or her former spouse during the marriage regarding a matter described in subsection (3). (7) Except as otherwise provided in subsection (3), a married person individual or a person an individual who has been married previously shall may not be examined in a criminal prosecution as to any communication made between that person individual and his or her spouse or former spouse during the marriage without the consent of the person individual to be examined. (8) In an action or proceeding instituted by the husband or wife, a spouse in consequence of adultery, the husband and wife spouses are not competent to testify. Sec. 2807. (1) A judgment lien does not attach to an interest in real property owned as tenants by the entirety unless the underlying judgment is entered against both the husband and wife.spouses. (2) With the following exceptions, a judgment lien has priority over a lien recorded with the register of deeds after the notice of judgment lien is recorded: (a) A purchase money mortgage. (b) A mortgage to the extent that proceeds of the mortgage are used to pay 1 or more of the following: (i) Purchase money mortgage debt. (ii) A subsequent refinancing of purchase money mortgage debt. (iii) A nonpurchase money mortgage recorded before attachment of the judgment lien. (c) A lien that secures an advance made under a previously recorded future-advance mortgage. (d) A lien that has or acquires priority by operation of law. (e) A claim of lien recorded with the register of deeds under section 111 of the construction lien act, 1980 PA 497, MCL 570.1111. (f) A lien for unpaid assessments or charges due to a condominium association, homeowners' association, or property owners' association that arises from or pursuant to recorded restrictions that run with the land. (g) A state or federal tax lien. (3) If property subject to a judgment lien recorded under this chapter is sold or refinanced, proceeds of the sale or refinancing due to a judgment creditor are limited to the judgment debtor's equity in the property at the time of the sale or refinancing after all liens senior to the judgment lien, property taxes, and costs and fees necessary to close the sale or refinancing are paid or extinguished. Sec. 3344. Any A married woman individual may release her the individual's right, interest, or estate to her husband the individual's spouse and lawfully acknowledge this release. If the release is executed outside of this state it shall must be executed, acknowledged, and certified as the laws of this state require for the execution, acknowledgment, and certification of deeds in any other state, territory, or district of the United States. Upon On the release, the shares of the sale arising from her the individual's contingent interest shall must be paid to her. the individual. This release shall be is a bar to her the individual's right, estate, or claim. Sec. 5451. (1) A debtor in bankruptcy under the bankruptcy code, 11 USC 101 to 1532, may exempt from property of the estate property that is exempt under federal law or, under 11 USC 522(b)(2), the following property: (a) All of the following: (i) Family pictures. (ii) Arms and accoutrements required by law to be kept by a person. (iii) Wearing apparel, excluding furs. (iv) Cemeteries, tombs, and rights of burial in use as repositories for the dead of the debtor's family or kept for burial of the debtor. (v) Professionally prescribed health aids. (b) Provisions and fuel for comfortable subsistence of each householder and his or her family for 6 months. (c) The interest, not to exceed a value of $450.00 in each item and an aggregate value of $3,000.00, in household goods, furniture, utensils, books, appliances, and jewelry. (d) The interest, not to exceed $500.00 in value, in a seat, pew, or slip occupied by the debtor or the debtor's family in a house or place of public worship. (e) The interest, not to exceed $2,000.00 in value, in crops, farm animals, and feed for the farm animals. (f) The interest, not to exceed $500.00 in value, in household pets. (g) The interest, not to exceed $2,775.00 in value, in 1 motor vehicle. (h) The interest, not to exceed $500.00 in value, in 1 computer and its accessories. (i) The interest, not to exceed $2,000.00 in value, in the tools, implements, materials, stock, apparatus, or other things to enable a person to carry on the profession, trade, occupation, or business in which the person is principally engaged. (j) Money or other benefits paid, provided, allowed to be paid or provided, or allowed, by a stock or mutual life, health, or casualty insurance company because of the disability due to injury or sickness of an insured person, whether the debt or liability of the insured person or beneficiary was incurred before or after the accrual of benefits under the insurance policy or contract, except that this exemption does not apply to actions to recover for necessities contracted for after the accrual of the benefits. (k) All individual retirement accounts, including Roth IRAs, or individual retirement annuities as defined in section 408 or 408a 408A of the internal revenue code of 1986, 26 USC 408 and 408a, 408A, and the payments or distributions from those accounts or annuities. This exemption applies to the operation of the federal bankruptcy code as permitted by section 522(b)(2) of the bankruptcy code, 11 USC 522. This exemption does not apply to the amount contributed to an individual retirement account or individual retirement annuity within 120 days before the debtor files for bankruptcy. This exemption does not apply to any of the following: (i) The portion of an individual retirement account or individual retirement annuity that is subject to an order of a court pursuant to a judgment of divorce or separate maintenance. (ii) The portion of an individual retirement account or individual retirement annuity that is subject to an order of a court concerning child support. (iii) The portion of an individual retirement account or individual retirement annuity that is attributable to contributions to the individual retirement account or premiums on the individual retirement annuity, including the earnings or benefits from those contributions or premiums, that, in the tax year made or paid, exceeded the deductible amount allowed under section 408 of the internal revenue code of 1986, 26 USC 408. This limitation on contributions does not apply to a rollover of a pension, profit-sharing, stock bonus plan, or other plan that is qualified under section 401 of the internal revenue code of 1986, 26 USC 401, or an annuity contract under section 403(b) of the internal revenue code of 1986, 26 USC 403. (l) The right or interest of a person in a pension, profit-sharing, stock bonus, or other plan that is qualified under section 401 of the internal revenue code of 1986, 26 USC 401, or an annuity contract under section 403(b) of the internal revenue code of 1986, 26 USC 403, if the plan or annuity is subject to the employee retirement income security act of 1974, Public Law 93-406. , 88 Stat. 829. This exemption does not apply to any amount contributed to a pension, profit-sharing, stock bonus, or other qualified plan or a 403(b) annuity if the contribution occurs within 120 days before the debtor files for bankruptcy. This exemption does not apply to the right or interest of a person in a pension, profit-sharing, stock bonus, or other qualified plan or a 403(b) annuity to the extent that the right or interest is subject to either of the following: (i) An order of a court pursuant to a judgment of divorce or separate maintenance. (ii) An order of a court concerning child support. (m) The interest of the debtor, the codebtor, if any, and the debtor's dependents, not to exceed $30,000.00 in value or, if the debtor or a dependent of the debtor at the time of the filing of the bankruptcy petition is 65 years of age or older or disabled, not to exceed $45,000.00 in value, in a homestead. (n) Property described in section 1 of 1927 PA 212, MCL 557.151, or real property, held jointly by a husband and wife spouses as a tenancy by the entirety, except that this exemption does not apply with regard to a claim based on a joint debt of the husband and wife.spouses. (o) If the owner of a homestead dies, leaving a surviving spouse but no children, the surviving spouse before his or her remarriage, unless the surviving spouse is the owner of a homestead in his or her own right, may exempt the homestead and the rents and profits of the homestead. (2) An exemption under this section does not apply to a mortgage, lien, or security interest in the exempt property that is consensually given or lawfully obtained unless the lien is obtained by judgment, attachment, levy, or similar legal process in connection with a court action or proceeding against the debtor. (3) If property that is exempt under this section is sold, damaged, destroyed, or acquired for public use, the right to receive proceeds or, if the owner receives proceeds and holds them in a manner that makes them identifiable as proceeds, the proceeds received are exempt from the property of a federal bankruptcy estate in the same manner and amount as the exempt property. An exemption under this subsection may be claimed up to 1 year after the receipt of the proceeds by the owner. (4) On March 1, 2005 and at the end of each 3-year period after 2005, the state treasurer shall adjust each dollar amount in this section or, for each adjustment after March 1, 2005, each adjusted amount, by an amount determined by the state treasurer to reflect the cumulative change in the consumer price index Consumer Price Index for the 3-year period ending on the December 31 preceding the adjustment date and rounded to the nearest $25.00. The state treasurer shall publish the adjusted amounts. The adjusted amounts apply to cases filed on or after April 1 following the adjustment date. (5) As used in this section: (a) "Consumer price index" Price Index" means the consumer price index Consumer Price Index for all urban consumers in the area of Detroit-Ann Arbor-Flint, Michigan, published by the United States department of labor Department of Labor or, if the United States department of labor Department of Labor ceases publishing that index, the most similar index available. (b) "Disabled" means unable to engage in substantial gainful activity, as defined by determined under 42 USC 1382c(a)(3)(E), as a result of a physical or mental impairment and receiving supplemental security income under 42 USC 1382c(a)(3)(A) and (C). (c) "Proceeds" means money payable or paid as a result of 1 or more of the following: (i) Sale of the property. (ii) Insurance or other indemnification for damage or destruction of the property. (iii) Compensation for the acquisition for public use of the property. (d) "Homestead" means 1 of the following owned or being purchased under an executory contract by the debtor that the debtor or a dependent of the debtor occupies as his or her principal residence: (i) If the land is located outside of a recorded plat, city, or village, a residential dwelling and appurtenances and the land on which they are situated, not exceeding 40 acres. (ii) If the land is located within a recorded plat, city, or village, a residential dwelling and appurtenances and the land on which they are situated, not exceeding 1 lot or parcel. (iii) A residential dwelling situated on land not owned by the debtor. (iv) A condominium unit. (v) A unit in a cooperative. (vi) A motor home. (vii) A boat or other watercraft. (e) "Residential dwelling" includes, but is not limited to, a house or a manufactured or mobile home. Sec. 6023a. Property described in section 1 of 1927 PA 212, MCL 557.151, or real property, held jointly by a husband and wife spouses as a tenancy by the entirety is exempt from execution under a judgment entered against only 1 spouse. Sec. 6131. (1) The In proceedings under this chapter, the complainant shall make a prima facie case by introducing in evidence the judgment against the principal defendant and proof of the conveyance complained of. The burden of proof is then on the judgment debtor, the person claiming through him, the judgment debtor, or the person whom it is claimed holds the property in trust for him, the judgment debtor, to show that the transaction is in all respects bona fide or that the person is not holding as trustee of the judgment debtor. (2) In case of If there is a levy on the equitable interest of a judgment debtor, the judgment creditor, may, before the sale on execution, institute proceedings under this chapter to ascertain and determine the rights and equities of the judgment debtor in the property levied on. Where no such If proceedings under this chapter are not instituted prior to before the sale on execution, they must be instituted within 1 year thereafter.after the sale. (3) Where If it appears that the judgment debtor, at a time within 1 year prior to before the date of the commencement of the action in which the judgment is entered, has had title to or has paid the purchase price of any real or personal property to which at the time of the examination his wife, or her spouse, or a relative or a person on confidential terms with the judgment debtor, may claim title or right of possession, the burden of proof shall be upon is on the judgment debtor, or the person claiming title or right of possession, to establish that the transfer or gift from him the judgment debtor was not made for the purpose of delaying, hindering, and defrauding creditors. Enacting section 1. This amendatory act does not take effect unless Senate Joint Resolution ____ or House Joint Resolution F (request no. 00367'23) of the 102nd Legislature becomes a part of the state constitution of 1963 as provided in section 1 of article XII of the state constitution of 1963. |
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| 25 | 25 | | HOUSE BILL NO. 4814 |
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| 27 | 27 | | |
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| 28 | 28 | | |
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| 29 | 29 | | A bill to amend 1961 PA 236, entitled |
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| 30 | 30 | | |
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| 31 | 31 | | "Revised judicature act of 1961," |
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| 32 | 32 | | |
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| 33 | 33 | | by amending sections 1410, 2005, 2162, 2807, 3344, 5451, 6023a, and 6131 (MCL 600.1410, 600.2005, 600.2162, 600.2807, 600.3344, 600.5451, 600.6023a, and 600.6131), section 2162 as amended by 2001 PA 11, section 2807 as added by 2004 PA 136, section 5451 as amended by 2012 PA 451, and section 6023a as added by 2004 PA 575. |
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| 34 | 34 | | |
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| 35 | 35 | | the people of the state of michigan enact: |
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| 36 | 36 | | |
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| 37 | 37 | | Sec. 1410. If 2 person individuals have lived together as husband and wife, spouses and a legal impediment existed to the marriage of either of the persons, individuals, their issue and the person individual that entered the relation in the good faith good-faith belief that the marriage was lawful are entitled to the same damages in a civil action as though no such impediment existed, when if the other of such persons the individuals or their issue is injured or dies as a result of the negligent act or omission of another. |
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| 38 | 38 | | |
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| 39 | 39 | | Sec. 2005. No A suit may not be brought against husband and wife, an individual and the individual's spouse, jointly, or against the husband spouse alone, for any tort of the wife, individual, unless such the tort was committed under such circumstances as to render them both liable. |
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| 40 | 40 | | |
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| 41 | 41 | | Sec. 2162. (1) In a civil action or administrative proceeding, a husband shall spouse may not be examined as a witness for or against his wife or her spouse without her the spouse's consent, or a wife for or against her husband without his consent, except as provided in subsection (3). |
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| 42 | 42 | | |
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| 43 | 43 | | (2) In a criminal prosecution, a husband shall spouse may not be examined as a witness for or against his wife or her spouse without his the spouse's consent, or a wife for or against her husband without her consent, except as provided in subsection (3). |
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| 45 | 45 | | (3) The spousal privileges established in subsections (1) and (2) and the confidential communications privilege established in subsection (7) do not apply in any of the following: |
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| 46 | 46 | | |
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| 47 | 47 | | (a) In a suit for divorce, separate maintenance, or annulment. |
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| 48 | 48 | | |
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| 49 | 49 | | (b) In a prosecution for bigamy. |
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| 50 | 50 | | |
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| 51 | 51 | | (c) In a prosecution for a crime committed against a child of either or both or a crime committed against an individual who is younger than 18 years of age. |
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| 52 | 52 | | |
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| 53 | 53 | | (d) In a cause of action that grows out of a personal wrong or injury done by one to the other or that grows out of the refusal or neglect to furnish the spouse or children with suitable support. |
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| 54 | 54 | | |
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| 55 | 55 | | (e) In a case of desertion or abandonment. |
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| 56 | 56 | | |
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| 57 | 57 | | (f) In a case in which the husband or wife spouse is a party to the record in a suit, an action , or proceeding if the title to the separate property of the husband or wife spouse called or offered as a witness, or if the title to property derived from, through, or under the husband or wife spouse called or offered as a witness, is the subject matter in controversy or litigation in the suit, action , or proceeding, in opposition to the claim or interest of the other spouse, who is a party to the record in the suit, action , or proceeding. In all such cases, the husband or wife spouse who makes the claim of title, or under or from whom the title is derived, shall be is as competent to testify in relation to the separate property and the title to the separate property without the consent of the husband or wife, other spouse, who is a party to the record in the suit, action , or proceeding, as though the marriage relation did not exist. |
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| 58 | 58 | | |
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| 59 | 59 | | (4) Except as otherwise provided in subsections (5) and (6), a married person individual or a person an individual who has been married previously shall may not be examined in a civil action or administrative proceeding as to any communication made between that person individual and his or her spouse or former spouse during the marriage. |
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| 60 | 60 | | |
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| 61 | 61 | | (5) A married person individual may be examined in a civil action or administrative proceeding, with his or her consent, as to any communication made between that person individual and his or her spouse during the marriage regarding a matter described in subsection (3). |
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| 62 | 62 | | |
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| 63 | 63 | | (6) A person An individual who has been married previously may be examined in a civil action or administrative proceeding, with his or her consent, as to any communication made between that person individual and his or her former spouse during the marriage regarding a matter described in subsection (3). |
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| 64 | 64 | | |
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| 65 | 65 | | (7) Except as otherwise provided in subsection (3), a married person individual or a person an individual who has been married previously shall may not be examined in a criminal prosecution as to any communication made between that person individual and his or her spouse or former spouse during the marriage without the consent of the person individual to be examined. |
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| 66 | 66 | | |
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| 67 | 67 | | (8) In an action or proceeding instituted by the husband or wife, a spouse in consequence of adultery, the husband and wife spouses are not competent to testify. |
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| 68 | 68 | | |
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| 69 | 69 | | Sec. 2807. (1) A judgment lien does not attach to an interest in real property owned as tenants by the entirety unless the underlying judgment is entered against both the husband and wife.spouses. |
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| 70 | 70 | | |
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| 71 | 71 | | (2) With the following exceptions, a judgment lien has priority over a lien recorded with the register of deeds after the notice of judgment lien is recorded: |
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| 73 | 73 | | (a) A purchase money mortgage. |
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| 74 | 74 | | |
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| 75 | 75 | | (b) A mortgage to the extent that proceeds of the mortgage are used to pay 1 or more of the following: |
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| 77 | 77 | | (i) Purchase money mortgage debt. |
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| 79 | 79 | | (ii) A subsequent refinancing of purchase money mortgage debt. |
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| 81 | 81 | | (iii) A nonpurchase money mortgage recorded before attachment of the judgment lien. |
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| 83 | 83 | | (c) A lien that secures an advance made under a previously recorded future-advance mortgage. |
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| 85 | 85 | | (d) A lien that has or acquires priority by operation of law. |
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| 87 | 87 | | (e) A claim of lien recorded with the register of deeds under section 111 of the construction lien act, 1980 PA 497, MCL 570.1111. |
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| 88 | 88 | | |
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| 89 | 89 | | (f) A lien for unpaid assessments or charges due to a condominium association, homeowners' association, or property owners' association that arises from or pursuant to recorded restrictions that run with the land. |
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| 90 | 90 | | |
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| 91 | 91 | | (g) A state or federal tax lien. |
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| 92 | 92 | | |
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| 93 | 93 | | (3) If property subject to a judgment lien recorded under this chapter is sold or refinanced, proceeds of the sale or refinancing due to a judgment creditor are limited to the judgment debtor's equity in the property at the time of the sale or refinancing after all liens senior to the judgment lien, property taxes, and costs and fees necessary to close the sale or refinancing are paid or extinguished. |
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| 95 | 95 | | Sec. 3344. Any A married woman individual may release her the individual's right, interest, or estate to her husband the individual's spouse and lawfully acknowledge this release. If the release is executed outside of this state it shall must be executed, acknowledged, and certified as the laws of this state require for the execution, acknowledgment, and certification of deeds in any other state, territory, or district of the United States. Upon On the release, the shares of the sale arising from her the individual's contingent interest shall must be paid to her. the individual. This release shall be is a bar to her the individual's right, estate, or claim. |
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| 96 | 96 | | |
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| 97 | 97 | | Sec. 5451. (1) A debtor in bankruptcy under the bankruptcy code, 11 USC 101 to 1532, may exempt from property of the estate property that is exempt under federal law or, under 11 USC 522(b)(2), the following property: |
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| 99 | 99 | | (a) All of the following: |
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| 101 | 101 | | (i) Family pictures. |
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| 103 | 103 | | (ii) Arms and accoutrements required by law to be kept by a person. |
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| 104 | 104 | | |
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| 105 | 105 | | (iii) Wearing apparel, excluding furs. |
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| 107 | 107 | | (iv) Cemeteries, tombs, and rights of burial in use as repositories for the dead of the debtor's family or kept for burial of the debtor. |
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| 108 | 108 | | |
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| 109 | 109 | | (v) Professionally prescribed health aids. |
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| 111 | 111 | | (b) Provisions and fuel for comfortable subsistence of each householder and his or her family for 6 months. |
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| 112 | 112 | | |
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| 113 | 113 | | (c) The interest, not to exceed a value of $450.00 in each item and an aggregate value of $3,000.00, in household goods, furniture, utensils, books, appliances, and jewelry. |
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| 114 | 114 | | |
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| 115 | 115 | | (d) The interest, not to exceed $500.00 in value, in a seat, pew, or slip occupied by the debtor or the debtor's family in a house or place of public worship. |
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| 116 | 116 | | |
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| 117 | 117 | | (e) The interest, not to exceed $2,000.00 in value, in crops, farm animals, and feed for the farm animals. |
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| 118 | 118 | | |
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| 119 | 119 | | (f) The interest, not to exceed $500.00 in value, in household pets. |
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| 120 | 120 | | |
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| 121 | 121 | | (g) The interest, not to exceed $2,775.00 in value, in 1 motor vehicle. |
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| 122 | 122 | | |
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| 123 | 123 | | (h) The interest, not to exceed $500.00 in value, in 1 computer and its accessories. |
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| 124 | 124 | | |
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| 125 | 125 | | (i) The interest, not to exceed $2,000.00 in value, in the tools, implements, materials, stock, apparatus, or other things to enable a person to carry on the profession, trade, occupation, or business in which the person is principally engaged. |
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| 126 | 126 | | |
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| 127 | 127 | | (j) Money or other benefits paid, provided, allowed to be paid or provided, or allowed, by a stock or mutual life, health, or casualty insurance company because of the disability due to injury or sickness of an insured person, whether the debt or liability of the insured person or beneficiary was incurred before or after the accrual of benefits under the insurance policy or contract, except that this exemption does not apply to actions to recover for necessities contracted for after the accrual of the benefits. |
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| 128 | 128 | | |
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| 129 | 129 | | (k) All individual retirement accounts, including Roth IRAs, or individual retirement annuities as defined in section 408 or 408a 408A of the internal revenue code of 1986, 26 USC 408 and 408a, 408A, and the payments or distributions from those accounts or annuities. This exemption applies to the operation of the federal bankruptcy code as permitted by section 522(b)(2) of the bankruptcy code, 11 USC 522. This exemption does not apply to the amount contributed to an individual retirement account or individual retirement annuity within 120 days before the debtor files for bankruptcy. This exemption does not apply to any of the following: |
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| 130 | 130 | | |
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| 131 | 131 | | (i) The portion of an individual retirement account or individual retirement annuity that is subject to an order of a court pursuant to a judgment of divorce or separate maintenance. |
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| 132 | 132 | | |
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| 133 | 133 | | (ii) The portion of an individual retirement account or individual retirement annuity that is subject to an order of a court concerning child support. |
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| 134 | 134 | | |
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| 135 | 135 | | (iii) The portion of an individual retirement account or individual retirement annuity that is attributable to contributions to the individual retirement account or premiums on the individual retirement annuity, including the earnings or benefits from those contributions or premiums, that, in the tax year made or paid, exceeded the deductible amount allowed under section 408 of the internal revenue code of 1986, 26 USC 408. This limitation on contributions does not apply to a rollover of a pension, profit-sharing, stock bonus plan, or other plan that is qualified under section 401 of the internal revenue code of 1986, 26 USC 401, or an annuity contract under section 403(b) of the internal revenue code of 1986, 26 USC 403. |
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| 136 | 136 | | |
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| 137 | 137 | | (l) The right or interest of a person in a pension, profit-sharing, stock bonus, or other plan that is qualified under section 401 of the internal revenue code of 1986, 26 USC 401, or an annuity contract under section 403(b) of the internal revenue code of 1986, 26 USC 403, if the plan or annuity is subject to the employee retirement income security act of 1974, Public Law 93-406. , 88 Stat. 829. This exemption does not apply to any amount contributed to a pension, profit-sharing, stock bonus, or other qualified plan or a 403(b) annuity if the contribution occurs within 120 days before the debtor files for bankruptcy. This exemption does not apply to the right or interest of a person in a pension, profit-sharing, stock bonus, or other qualified plan or a 403(b) annuity to the extent that the right or interest is subject to either of the following: |
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| 138 | 138 | | |
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| 139 | 139 | | (i) An order of a court pursuant to a judgment of divorce or separate maintenance. |
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| 140 | 140 | | |
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| 141 | 141 | | (ii) An order of a court concerning child support. |
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| 142 | 142 | | |
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| 143 | 143 | | (m) The interest of the debtor, the codebtor, if any, and the debtor's dependents, not to exceed $30,000.00 in value or, if the debtor or a dependent of the debtor at the time of the filing of the bankruptcy petition is 65 years of age or older or disabled, not to exceed $45,000.00 in value, in a homestead. |
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| 144 | 144 | | |
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| 145 | 145 | | (n) Property described in section 1 of 1927 PA 212, MCL 557.151, or real property, held jointly by a husband and wife spouses as a tenancy by the entirety, except that this exemption does not apply with regard to a claim based on a joint debt of the husband and wife.spouses. |
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| 146 | 146 | | |
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| 147 | 147 | | (o) If the owner of a homestead dies, leaving a surviving spouse but no children, the surviving spouse before his or her remarriage, unless the surviving spouse is the owner of a homestead in his or her own right, may exempt the homestead and the rents and profits of the homestead. |
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| 148 | 148 | | |
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| 149 | 149 | | (2) An exemption under this section does not apply to a mortgage, lien, or security interest in the exempt property that is consensually given or lawfully obtained unless the lien is obtained by judgment, attachment, levy, or similar legal process in connection with a court action or proceeding against the debtor. |
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| 150 | 150 | | |
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| 151 | 151 | | (3) If property that is exempt under this section is sold, damaged, destroyed, or acquired for public use, the right to receive proceeds or, if the owner receives proceeds and holds them in a manner that makes them identifiable as proceeds, the proceeds received are exempt from the property of a federal bankruptcy estate in the same manner and amount as the exempt property. An exemption under this subsection may be claimed up to 1 year after the receipt of the proceeds by the owner. |
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| 152 | 152 | | |
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| 153 | 153 | | (4) On March 1, 2005 and at the end of each 3-year period after 2005, the state treasurer shall adjust each dollar amount in this section or, for each adjustment after March 1, 2005, each adjusted amount, by an amount determined by the state treasurer to reflect the cumulative change in the consumer price index Consumer Price Index for the 3-year period ending on the December 31 preceding the adjustment date and rounded to the nearest $25.00. The state treasurer shall publish the adjusted amounts. The adjusted amounts apply to cases filed on or after April 1 following the adjustment date. |
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| 154 | 154 | | |
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| 155 | 155 | | (5) As used in this section: |
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| 156 | 156 | | |
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| 157 | 157 | | (a) "Consumer price index" Price Index" means the consumer price index Consumer Price Index for all urban consumers in the area of Detroit-Ann Arbor-Flint, Michigan, published by the United States department of labor Department of Labor or, if the United States department of labor Department of Labor ceases publishing that index, the most similar index available. |
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| 158 | 158 | | |
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| 159 | 159 | | (b) "Disabled" means unable to engage in substantial gainful activity, as defined by determined under 42 USC 1382c(a)(3)(E), as a result of a physical or mental impairment and receiving supplemental security income under 42 USC 1382c(a)(3)(A) and (C). |
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| 160 | 160 | | |
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| 161 | 161 | | (c) "Proceeds" means money payable or paid as a result of 1 or more of the following: |
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| 162 | 162 | | |
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| 163 | 163 | | (i) Sale of the property. |
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| 164 | 164 | | |
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| 165 | 165 | | (ii) Insurance or other indemnification for damage or destruction of the property. |
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| 166 | 166 | | |
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| 167 | 167 | | (iii) Compensation for the acquisition for public use of the property. |
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| 168 | 168 | | |
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| 169 | 169 | | (d) "Homestead" means 1 of the following owned or being purchased under an executory contract by the debtor that the debtor or a dependent of the debtor occupies as his or her principal residence: |
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| 170 | 170 | | |
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| 171 | 171 | | (i) If the land is located outside of a recorded plat, city, or village, a residential dwelling and appurtenances and the land on which they are situated, not exceeding 40 acres. |
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| 172 | 172 | | |
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| 173 | 173 | | (ii) If the land is located within a recorded plat, city, or village, a residential dwelling and appurtenances and the land on which they are situated, not exceeding 1 lot or parcel. |
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| 174 | 174 | | |
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| 175 | 175 | | (iii) A residential dwelling situated on land not owned by the debtor. |
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| 176 | 176 | | |
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| 177 | 177 | | (iv) A condominium unit. |
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| 178 | 178 | | |
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| 179 | 179 | | (v) A unit in a cooperative. |
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| 180 | 180 | | |
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| 181 | 181 | | (vi) A motor home. |
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| 182 | 182 | | |
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| 183 | 183 | | (vii) A boat or other watercraft. |
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| 184 | 184 | | |
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| 185 | 185 | | (e) "Residential dwelling" includes, but is not limited to, a house or a manufactured or mobile home. |
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| 186 | 186 | | |
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| 187 | 187 | | Sec. 6023a. Property described in section 1 of 1927 PA 212, MCL 557.151, or real property, held jointly by a husband and wife spouses as a tenancy by the entirety is exempt from execution under a judgment entered against only 1 spouse. |
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| 188 | 188 | | |
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| 189 | 189 | | Sec. 6131. (1) The In proceedings under this chapter, the complainant shall make a prima facie case by introducing in evidence the judgment against the principal defendant and proof of the conveyance complained of. The burden of proof is then on the judgment debtor, the person claiming through him, the judgment debtor, or the person whom it is claimed holds the property in trust for him, the judgment debtor, to show that the transaction is in all respects bona fide or that the person is not holding as trustee of the judgment debtor. |
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| 190 | 190 | | |
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| 191 | 191 | | (2) In case of If there is a levy on the equitable interest of a judgment debtor, the judgment creditor, may, before the sale on execution, institute proceedings under this chapter to ascertain and determine the rights and equities of the judgment debtor in the property levied on. Where no such If proceedings under this chapter are not instituted prior to before the sale on execution, they must be instituted within 1 year thereafter.after the sale. |
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| 192 | 192 | | |
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| 193 | 193 | | (3) Where If it appears that the judgment debtor, at a time within 1 year prior to before the date of the commencement of the action in which the judgment is entered, has had title to or has paid the purchase price of any real or personal property to which at the time of the examination his wife, or her spouse, or a relative or a person on confidential terms with the judgment debtor, may claim title or right of possession, the burden of proof shall be upon is on the judgment debtor, or the person claiming title or right of possession, to establish that the transfer or gift from him the judgment debtor was not made for the purpose of delaying, hindering, and defrauding creditors. |
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| 194 | 194 | | |
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| 195 | 195 | | Enacting section 1. This amendatory act does not take effect unless Senate Joint Resolution ____ or House Joint Resolution F (request no. 00367'23) of the 102nd Legislature becomes a part of the state constitution of 1963 as provided in section 1 of article XII of the state constitution of 1963. |
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