Federal Deposit Insurance v. Bergan

Plaintiff appeals by leave granted an order of the circuit court reversing the district court’s judgment of a land contract forfeiture in favor of the Federal Deposit Insurance Corporation (fdic). The circuit court held as a matter of law that the fdic is subject to the interest forfeiture provision of the Michigan usury statute, MCL 438.32; MSA 19.15(2), and that the fdic. therefore was not entitled to collect back interest on defendant’s land contract. We affirm in part, reverse in part, and remand.

The facts of this case are not in dispute. In 1982, defendant, Eric Bergan, entered into a…