Source: https://law.justia.com/codes/maryland/2010/commercial-law/title-12/subtitle-10/12-1021/
Timestamp: 2020-05-29 20:14:47
Document Index: 651390009

Matched Legal Cases: ['§ 12', '§ 1', '§ 1', '§ 1', '§ 2', '§ 1', '§ 2', '§ 1']

Section 12-1021 - Repossession. :: 2010 Maryland Code :: US Codes and Statutes :: US Law :: Justia
Justia US Law US Codes and Statutes Maryland Code 2010 Maryland Code COMMERCIAL LAW TITLE 12 - CREDIT REGULATIONS Subtitle 10 - Credit Grantor Closed End Credit Provisions Section 12-1021 - Repossession.
Section 12-1021 - Repossession.
§ 12-1021. Repossession.
(a) Authorized.-
(1) A credit grantor may repossess tangible personal property securing a loan under an agreement, note, or other evidence of the loan if the consumer borrower is in default.
(b) Violation of criminal law not authorized.- Nothing in this section authorizes a violation of criminal law.
(c) Notice of intent to repossess.-
(1) At least 10 days before a credit grantor repossesses any tangible personal property, the credit grantor may serve a written notice on the consumer borrower of the intention to repossess the tangible personal property.
(d) Same - Service.- The notice may be delivered to the consumer borrower personally or sent to him at his last known address by registered or certified mail.
(e) Notice of right to redeem or rights upon resale - Required; contents.- Within 5 days after the credit grantor repossesses the tangible personal property the credit grantor shall deliver to the consumer borrower personally or send to him at his last known address by registered or certified mail, a written notice which briefly states:
(f) Same - Retention of property by credit grantor.- For 15 days after the credit grantor gives the notice required by subsection (e) of this section, the credit grantor shall retain any repossessed property.
(g) Redemption of repossessed property - Authorized.- During the period provided for in subsection (f) of this section, the consumer borrower may:
(h) Same - Procedure.- To redeem the property, the consumer borrower shall:
(i) Right of credit grantor to require consumer borrower to tender payment of entire balance due.-
(1) Notwithstanding subsections (g) and (h) of this section, the credit grantor shall have the right to require the consumer borrower to tender payment of the entire balance due under the agreement if:
(i) The date of the default in the payments due under the agreement that led to the present repossession occurred within 18 months after the last repossession; or
(ii) The consumer borrower was guilty of fraudulent conduct, intentionally and wrongfully concealed, removed, damaged, or destroyed the property, or attempted to do so, and the property was repossessed because of that conduct.
(2) Under paragraph (1) of this subsection, the payment by the consumer borrower of the entire balance due under the agreement shall:
(i) Constitute redemption by the consumer borrower; and
(ii) Entitle the consumer borrower to take possession of the property.
(j) Sale or auction - Authorized; notice; commercially reasonable manner; accounting.-
(1) (i) Subject to subsection (l) of this section, the credit grantor shall sell the property that was repossessed at:
(ii) At least 10 days before the sale, the credit grantor shall notify the consumer borrower in writing of the time and place of the sale, by certified mail, return receipt requested, sent to the consumer borrower's last known address.
(vii) The purchaser's name, address, and business address;
(k) Same - Disposition of certain proceeds.-
(1) The provisions of this subsection apply to a public sale of property which secured a loan in excess of $2,000 at the time the loan was made.
(4) If the provisions of this section, including the requirement of furnishing a notice following repossession, are not followed, the credit grantor shall not be entitled to any deficiency judgment to which he would be entitled under the loan agreement.
(l) Consumer goods; purchase money security interest; retention of property in satisfaction of obligations; written notice.-
(1) (i) In this subsection, "consumer goods" means tangible personal property used or bought for use primarily for personal, family, or household purposes that is:
(ii) "Consumer goods" does not include money, documents, instruments, accounts, chattel paper, or general intangibles.
(2) This subsection applies to tangible personal property securing a loan that:
(3) In the case of a purchase money security interest in consumer goods, if a consumer borrower has paid 60 percent of the cash price or 60 percent of the loan in the case of another security interest in consumer goods and, after default, has not signed a statement renouncing or modifying the consumer borrower's rights under this subsection, a credit grantor who has repossessed the consumer goods must take reasonable action within 90 days after the repossession to commence disposal of them in the manner provided under subsection (j) of this section.
(4) (i) In any other case involving tangible personal property securing a loan, a credit grantor may, after default, propose to retain the property in full satisfaction of the obligations of the borrower under the loan.
(ii) If, as authorized by subparagraph (i) of this paragraph, a credit grantor proposes to retain property in full satisfaction of the obligations of the borrower under the loan, the credit grantor shall send written notice of the proposal to:
2. In the absence of written objection, the credit grantor may retain the property in full satisfaction of the outstanding unpaid indebtedness under the loan.
(5) If despite complying with the requirements of this section there is no sale of tangible personal property securing a loan under subsection (j) of this section:
(ii) If the property is retained, all obligations of the borrower under the loan shall be discharged.
[1983, ch. 143; 1985, ch. 585; 1986, ch. 750; 1987, ch. 765; 1988, ch. 5; ch. 6, § 1; ch. 632; 1992, ch. 22, § 1; 1993, ch. 5, § 1; ch. 404, § 2; 1994, ch. 4, § 1; 1996, ch. 326, § 2; 1997, ch. 14, § 1; ch. 218.]