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Interest And Mortgages

Interest And Mortgages image
Parent Issue
Day
30
Month
July
Year
1891
Copyright
Public Domain
OCR Text

The recent much auiented legislature did find time, in the midst of all its partisan bilis, to pass some measures of rval interest to tlie people. Those which affect interest and mortgag ís are undoubtedly the most important. As considerable inquiry has arisen as to juet what these laws contain, The Register takes plea6ure in reprinting portions of them. That relating to interest reads as followe: Seetion 1. The People of the State of Michigan enact, That the interest of money shall be at the rate of six dollars iipon one hundred dollars for a year, and at the same rate foragreater or less Bum, and for a longer or shorter time, except that in all cases itshall belawful for the parties to stipulate in writing for the payment of any rate of interpst not exceeding eight per cent. per annum: Provided, That this act 6ball not apply to exi8ting contracis, whether the same be either due, not due, or part due. Sec. 2. No bond, bilí, note, contract or asBurance, made or given for or upen a consideration or contract, whereby or whereon a greater rate of interest has been, directly or indirectly, reserved, taken or received, than is allowed by law, shall be thereby rendered void; but in any action brought by any person on such usurious contract or assurance, except as is provided in the following seetion, if it shall appear that a ereater rate of interest has boen, directly or indirectly, reserved, taken or received, than is allowed by law, the defendant shall not be compelled to pay any interest thereon. Sec. ,'!. Whenever it shall satisfactorily appear by the admission of the defendant, or by pïoof, that any bond, bill, note, assurance, pledge, conveyan;e, contract, security, or any evidence of debt, bas been taken or received in violation of this act, the court shall declare the interest thereon to be void. TUE TAX LAW. This provides for "tha assessment of property and the levy of taxes thereon, and for the collection of taxes heretofore and hereafter levied, and to repeal act one hundred and ninety-five of the session laws of 1889, except as provided in this act, and all other acts or parts of acts in anywise contravening any of the provisions of this act." The principal change is that which authorizes the taxation of mortgages. Exemptions remain practically the same. There is but littlechangeintheassessmentroll. The penalty of making a false statement of taxable property is flxed at a fine of $100 or thirty days imprisonment or both, The following exiracts coniprehend the most important alterations: For the purpose of taxation, real property shall include all the lands within [the] this State, and all buildings and üx tures thereon and appurteoances thereto, except in cases otherwiBe expressly provided by law, and any real esttte mortgage, deed of trust, contract, or ather obligation, by whicb a debt is secured, when land within this State is pledged for the payment and discharge thereof, shall, for the purpese of assessment and taxation, be deemed and treated as an interest in the land so pledged. Personal property shall include all goods and chattels within the State, all ships,boats and vessels belonging to inhabitants of this State, whether at home or abroad, and their appurtenances; all goods, chattels and effects belonging to inhabitants of this State, sitúate without this State, except that property actually and permanently in vested [in] business in another State shall not be included; all indebtedneesdue to inhabitants of tb. 6(5 ate except mortgages and bilis receivable, secured by mortgages, or other incumbrances on real es tal e situated in thi" State, above the amounts respectively owned by them, whether such indebtedness is due from individuals or from corporations, public or private, and whether such debtors reside within or without the State; unless the same shall be secured by mortgage on real estáte situated in some State where mortgages are taxed as an interest in the land; all shares in corporations organized under the laws of this State, when the property of such Corporation is not exempt or is not taxable to itself; all shares in banks organized in this state under any law of the United States, but in estimating the value of such shares, deduction shall be made of the value of all real estáte taxed to the bank; all shares in foreign corporations, except national banks, owned by iuhabitants of this State; all moneys; all annuities and royalties; all interests owned by individuals in lands, the fee of which is in this State or the United States, except as hereinafter provided. Property exempt from taxation by the laws of the United States shall not be included. Shares in corporations, the property of which is taxable to itself, shall not be assessed to the shareholder. A mortgage, deed of trust, contract, or other obligation by which a debt is secured by a lien upon real property within this State, Bhall, for the purpose of assessment and taxation, be deemed and treated as an interest in such real property, except as [to] tbe property of [railroad] railroads and quati public corporations. In such case the value of the property aflected by such mortgage, deed of trust contract or obligation, less the value of such security, shall be assessed and taxed to the owner of the property and the value of such security shall be assessed and taxed to the owner thereof, in the country and assessing district in which the property so affected is located. The taxes so levied shall be a lien upon the property and security and may be paid by either party to such security. If paid by the mortgagerorholder of the real property1 such portion as was assessed to the mortgagee shall be considered and treated as payment on any interest that may be due, or if there is no interest due, then as a payment of so nineh principal. If paid by the mortgagee or holder of the security such portion as was assessed to the mortgager or owner of the fee shall become a lien upon the land or real property, and be added to all other obligations, and become subject to the same terms, and conditions as 8uch mortgage, or other security: Provided, that it shall [be uclawful] not be lawful for either party to pay the portion of the 'ax assessed to the other, until afler the expiralion of thirty days from the time the warrant for the eollection of the taxes has been placed in the hands of the treasurer: Provided further, that if the saiil mortgagee shall neglect, nr refuwe, to pay the tax assessed to him as the boider ol any such mortgage, deed of trust, contract or other obligation, the treasurer shall proceed to collect the .ame from the mortgager, or holder of siiid real estáte, in ihe f-ame marnier as is provided y law for oollecting other taxes, and any delinquent tax accruing by reason of the failure to collect the tax assessed upon any such murtgage, deed of trust, contract or other obligation, may lie returned against the said land in the same marineras other delinquent taxes. If any such security or indebtedness shall be paid by any such debtor or debtors after the tax shall have become a lien upon the real property affected thereby, the amount of the tax levied ehall become an offset against such indebtedness. It shall be the duty of the holder of any such mortgage, deed of trust, contract or otherobligation, to file with the supervisor, or other assessing officer of thetownship or assessing district in which the land or real property affected thereby is situated, before the tenth day of April of each year, a written statement under oath of all his estáte situated in such township or assessing district, liable to assessment and taxation under the provisions of thia act, otherwise a written statement of the mortgageeja interest in any such real estáte may be filed with the supervisor by the mortgager or owner of the fee. No morteage, deed of trust, contract or other obligation by which any incumbrance npon real estáte situated in more than one assessing district shall be created, shall be accepted for record or recorded by any register of deeds within this State unless there ehall be contained therein or appended thereto ft statement apportioning for purposes of taxation the incurnbrances so secured by such real estáte upon the separate pareéis of land included in such instrument for record so as to show the proportionate amounts to be assessed as an interest on each parce] in the different aesessing districts. The obligor may include such apportionment in such instrument, but in case the obligor shall fail to do so, the obligee or sotne authorized person in his behalf may append the statement of apportionment to such instrument.

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