Sec. 3. (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.
Post closing solvency covenant; prohibited use.
Mich. Comp. Laws § 445.1593, under NONRECOURSE MORTGAGE LOAN ACT.
Mich. Comp. Laws § 445.1593