Retroactive (Michigan) state law lets GOP chairman's brother off hook for $2.4 million

Source: Detroit Free Press

Retroactive state law lets GOP chairman's brother off hook for $2.4 million
March 31, 2012
By Paul Egan
Detroit Free Press Lansing Bureau


LANSING -- Wells Fargo bank will file a court challenge to a new state law signed by Gov. Rick Snyder that overturned a $2.4-million judgment against the brother and business partner of Michigan Republican Party Chairman Bobby Schostak, the bank's attorney said Friday.

The law Snyder signed Thursday, which says a lender can recover only the real estate offered as collateral when a certain type of commercial loan goes into default, is unusual because it is retroactive, to the benefit of Schostak's brother.

It sailed through the Legislature with bipartisan support but left some unhappy lawmakers in its wake.

"It was one of the more disturbing bills that we've taken up this session," said Rep. Tom McMillin, R-Rochester Hills, who chairs the House Oversight, Reform and Ethics Committee.

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