Written by Forrest Wall, CAE, Staff Vice President
and Industry Relations
Constitutionality Of Nonrecourse Mortgage Loan Act Under Attack … Again
AAM has joined the Building Owners & Managers Association (BOMA) and other real estate associations in the filing of an amicus brief supporting the constitutionality of Michigan’s Nonrecourse Mortgage Loan Act (NMLA). This law, enacted in 2012, corrected problems with the interpretation of nonrecourse loan carveouts by prohibiting a post-closing solvency covenant from being used as a nonrecourse carveout or as a basis for any claim against a borrower, guarantor, or other surety on a nonrecourse loan, and, by specifying that a noncompliant provision in loan documents would be invalid. The legislation applied to the enforcement and interpretation of all nonrecourse loan documents in existence at the time or entered into in the future. The legislation was needed in response to two court cases in Michigan which essentially provided for personal liability within nonrecourse loans in the event of foreclosure. In 2013, the Michigan Court of Appeals upheld the constitutionality of the act in one of those cases, known as the Cherryland Mall case. Now, the NMLA is under attack in federal court in the case of Borman, LLC v. 18718 Borman, LLC. Stay tuned …
Help AAM-PAC Make A Difference In This Election!
With the Governor’s office, all 110 seats in the Michigan House of Representatives, all 38 seats in the Michigan Senate, and other key leadership posts up for election this year, it is imperative that business owners are involved in the political process.
One great way to have your voice heard is to support AAM-PAC. AAM-PAC is the Apartment Association’s political action committee, which utilizes contributions from members and aggregates them into one fund. This fund is used to financially support those elected officials who understand the important role of rental housing in Michigan’s economy. In short, we do the legwork for you to find the candidates who will best represent your business, and then support their campaign.
Remember, AAM-PAC contributions must be made via personal, partnership, LLP, or LLC check or credit cards. Please call me at 248-862-1004 to make your contribution today!