reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-624 - Repossession -- Holder's Right to Repossess

(a)    The holder may repossess goods sold under an agreement if:
(1)    The buyer is in default in:
(i)    The payment of any sum due under the agreement;
(ii)    The performance of any other condition which the agreement lawfully requires him to perform in order to obtain unencumbered title to the goods; or
(iii)    The performance of any promise the breach of which is expressly made a ground for repossessing the goods; or
(2)    The goods were seized by a police department, bureau, or force.
(b)    (1)    The holder may repossess goods only by:
(i)    Legal process; or
(ii)    Self-help, without use of force.
(2)    Nothing in this section authorizes a violation of criminal law.
(c)    (1)    At least 10 days before he repossesses any goods, the holder may serve a written notice on the buyer of his intention to repossess the goods.
(2)    The notice shall:
(i)    State the default and any period at the end of which the goods will be repossessed; and
(ii)    Briefly state the rights of the buyer in case the goods are repossessed.
(3)    The notice may be delivered to the buyer personally or sent to him at his last known address by registered or certified mail.
(d)    Within five days after he repossesses the goods, the holder shall deliver to the buyer personally or send to him at his last known address by registered or certified mail, a written notice which briefly states:
(1)    The right of the buyer to redeem the goods, and the amount payable for them;
(2)    The rights of the buyer as to a resale, and his liability for a deficiency; and
(3)    The exact location where the goods are stored and the address where any payment is to be made or notice delivered.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-625 - Repossession -- Buyer's Right of Redemption

(a)    For 15 days after the holder gives the notice required by § 12-624(d) of this subtitle, the holder shall retain any repossessed goods in the county where the goods were sold to the buyer or were repossessed.
(b)    During the period provided for in subsection (a) of this section, the buyer may:
(1)    Redeem and take possession of the goods; and
(2)    Resume the performance of the agreement.
(c)    To redeem the goods, the buyer shall:
(1)    Tender the amount due under the agreement at the time of redemption, without giving effect to any provision which allows acceleration of any installment otherwise payable after that time;
(2)    Tender performance of any other promise for the breach of which the goods were repossessed; and
(3)    If the discretionary notice provided for in § 12-624(c) of this subtitle was given, pay the actual and reasonable expenses of retaking and storing the goods.
(d)    This section does not apply if the goods were seized by a police department, bureau, or force and the goods were repossessed because of that seizure, in which event, the buyer shall have no right to redeem or take possession, even if the buyer tenders payment of the entire balance due under the agreement.
(e)    Notwithstanding subsections (b) and (c) of this section:
(1)    The holder shall have the right to require the buyer 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 buyer was guilty of fraudulent conduct, intentionally and wrongfully concealed, removed, damaged, or destroyed the goods, or attempted to do so, and the goods were repossessed because of that conduct.
(2)    Under paragraph (1) of this subsection, the payment by the buyer of the entire balance due under the agreement shall:
(i)    Constitute redemption by the buyer; and
(ii)    Entitle the buyer to take possession of the goods.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-627 - Repossession -- Discharge of Agreement in Absence of Resale

If there is no resale of repossessed goods under § 12-626 of this subtitle, all obligations of the buyer under the agreement shall be discharged, and the holder may retain the goods as his own property without obligation to account to the buyer.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-628 - Promissory Note

(a)    If, as part of an installment sale, a promissory note is taken by a seller or sales finance company, the note shall refer to the agreement out of which it arises.
(b)    If the note is assigned, it is subject to all defenses which the buyer might have asserted against the seller or sales finance company, except that an acknowledgment by the buyer of delivery of a copy of the agreement pursuant to § 12-605 of this subtitle is conclusive proof of the delivery in favor of an assignee of the note without actual knowledge to the contrary.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-630 - Violation of Subtitle

(a)    Except as provided by subsections (b) and (c) of this section, a holder may not collect or receive any finance, delinquency, or collection charge from the buyer if:
(1)    The agreement does not contain the information required by §§ 12-604 through 12-606 of this subtitle;
(2)    The seller fails to deliver to the buyer a required copy of the agreement; or
(3)    The agreement contains a finance charge in excess of the applicable charge permitted by § 12-609 or § 12-610 of this subtitle.
(b)    Written acknowledgment by the buyer of delivery of a copy of the agreement pursuant to § 12-605 of this subtitle is conclusive proof of the delivery as between the buyer and any assignee of the agreement without actual knowledge to the contrary.
(c)    If the seller or any subsequent holder unintentionally and in good faith fails to comply with any provision of §§ 12-609 through 12-612 of this subtitle, the holder may correct the error within 10 days after:
(1)    He notices it; or
(2)    The buyer notifies him in writing of the error.
(d)    If an instrument contains any provision prohibited by § 12-607 of this subtitle, that provision is void and the holder may not collect or receive from the buyer, in connection with the transaction to which the instrument relates, any finance, delinquency, or collection charge.
(e)    The penalties of this section are in addition to those provided in Part IV of this subtitle or in any other statutory law.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-631 - Jurisdiction of Commissioner of Financial Regulation

(a)    If a complaint for violation of any provision of Part II of this subtitle is filed with the Commissioner of Financial Regulation, he may investigate the complaint and hold a hearing on it in accordance with § 11-413 of the Financial Institutions Article.
(b)    The Commissioner shall give to the person complained against at least ten days’ written notice of the complaint and the time and place of any hearing. The notice shall be in writing and sent by registered or certified mail to his principal place of business.
(c)    (1)    If, after the hearing, the Commissioner finds that a person has engaged or is engaging in any act or practice prohibited by Part II of this subtitle, he shall order the person to cease and desist from the act or practice.
(2)    The order of the Commissioner shall comply with the Administrative Procedure Act.
(d)    (1)    If no appeal is filed, the order becomes final after expiration of the time allowed by the Administrative Procedure Act for appeals from the Commissioner’s order.
(2)    If an appeal is filed, the order becomes final after final decision of the court affirming the order or dismissing the appeal.
(e)    For the purposes of this section, the Commissioner’s order may not apply to any:
(1)    Incorporated bank, savings institution, or trust company;
(2)    A savings and loan association; or
(3)    A federal credit union or State chartered credit union.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part III - Sales Finance Companies -- Renewals, Extensions, or Refunds › Section 12-632 - Permitted Transactions

In connection with an installment sale agreement, a sales finance company may:
(1)    Renew or extend the time for payment of any installment sale agreement or any installment; or
(2)    Refund to the buyer, for subsequent repayment by him, the amount of any installment previously paid.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part III - Sales Finance Companies -- Renewals, Extensions, or Refunds › Section 12-633 - Written Agreement

(a)    (1)    Except as provided in paragraph (2) of this subsection, any renewal, extension, or refund made under § 12-632 of this subtitle shall be by a written agreement signed by each party.
(2)    If an extension is granted without any additional charge, the agreement need be signed only by the sales finance company.
(b)    (1)    At the time a renewal, extension, or refund is made, the sales finance company shall deliver to the buyer an exact copy of the agreement.
(2)    The agreement shall:
(i)    State the name and post office address of each party;
(ii)    Identify the prior agreement to which it relates;
(iii)    Describe the goods;
(iv)    Describe any security interest or collateral security which was reserved or taken to secure the prior agreement and which is retained to secure the renewal, extension, or refund; and
(v)    State the amount of the extended principal, the agreed rate of charge, the number of scheduled installments, and the time and amount of each installment.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part III - Sales Finance Companies -- Renewals, Extensions, or Refunds › Section 12-634 - Permitted Charges

(a)    A sales finance company may charge the buyer for a renewal, extension, or refund made under § 12-632 of this subtitle, an amount not exceeding an annual effective rate of simple interest, as defined in Subtitle 1 of this title, of 15 percent per annum on the balances outstanding from time to time of the extended principal, from the date of the renewal, extension, or refund to the date set for the final payment.
(b)    The extended principal may not exceed the aggregate amount of the unpaid portion of the time balance under the agreement, any delinquency charges lawfully payable, and any amount of cash actually refunded to the buyer, less a credit for prepayment computed as if the unpaid portion of the time balance had been paid in full at the time of the renewal, extension, or refund.
(c)    Notwithstanding the provisions of subsection (a) of this section, a sales finance company may charge an annual effective rate of simple interest of 24 percent on renewals or extensions on contracts made on or after July 1, 1982, on the balances outstanding from time to time.
(d)    No sales finance company may charge the rates permitted by subsection (c) of this section unless the sales finance company complies with the limitations of §§ 12-610.1 and 12-610.2 of this subtitle and provided that such a renewal or extension agreement may not provide for a balloon payment.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part III - Sales Finance Companies -- Renewals, Extensions, or Refunds › Section 12-635 - Prepayment

(a)    A sales finance company shall permit a buyer to prepay in full or in part at any time, without penalty, the outstanding balance payable under a renewal, extension, or refund agreement.
(b)    If a buyer prepays the entire outstanding balance, the sales finance company shall pay or credit to him the unearned portion of the charge.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part IV - Penalties › Section 12-636 - Penalties

(a)    Any person who knowingly violates or participates in the violation of any provision of Part II of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $100 for the first offense and not exceeding $500 for any subsequent offense.
(b)    Any person who violates or participates in the violation of any provision of Part III of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $500 or imprisonment not exceeding six months or both.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 7 - Equal Credit Opportunity Act › Section 12-701 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Applicant” means any person who applies to a creditor:
(1)    Directly for an extension, renewal, or continuation of credit; or
(2)    Indirectly by use of an existing credit plan for an amount exceeding a previously established credit limit.
(c)    “Commissioner” means the Commissioner of Financial Regulation.
(d)    “Credit” means the right granted by a creditor to a debtor to:
(1)    Defer payment of a debt;
(2)    Incur a debt and defer its payment; or
(3)    Purchase property or services and defer payment for it.
(e)    “Creditor” means any person who regularly:
(1)    Extends, renews, or continues credit for personal, family or household purposes; or
(2)    Arranges for the extension, renewal, or continuation of credit.
(f)    “Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 7 - Equal Credit Opportunity Act › Section 12-702 - Findings and Purpose

(a)    The General Assembly finds that there is a need to insure that the various financial institutions and other persons and firms engaged in the extension of credit exercise their responsibility to make credit available with fairness, impartiality, and without discrimination on the basis of sex or marital status. Economic stabilization would be enhanced, and competition among the various financial institutions and other persons and firms engaged in the extension of credit would be strengthened by an absence of discrimination on the basis of sex, marital status, race, color, religion, national origin, or age (provided the applicant has capacity to contract).
(b)    It is the purpose of this subtitle to require that financial institutions and other persons and firms engaged in the extension of credit do not deny credit on the basis of sex, marital status, race, color, religion, national origin, or age (provided the applicant has capacity to contract).
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 7 - Equal Credit Opportunity Act › Section 12-703 - Jurisdiction of Commissioner of Financial Regulation

(a)    If a complaint for violation of any provisions of this subtitle is filed with the Commissioner, the Commissioner shall investigate the complaint and may hold a hearing on it in accordance with the Administrative Procedure Act.
(b)    The Commissioner shall give to the creditor complained against at least 10 days’ written notice of the complaint and the time and place of any hearing. The notice shall be in writing and sent by registered or certified mail to the creditor’s principal place of business.
(c)    (1)    If, after the hearing, the Commissioner finds that the creditor has engaged or is engaging in any act or practice prohibited by this subtitle, the Commissioner shall order the creditor to cease and desist from the act or practice.
(2)    The order of the Commissioner shall comply with the Administrative Procedure Act.
(d)    (1)    If no appeal is filed, the order becomes final after expiration of the time allowed by the Administrative Procedure Act for appeals from the Commissioner’s orders.
(2)    If an appeal is filed, the order becomes final after final decision of the court affirming the order or dismissing the appeal.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 7 - Equal Credit Opportunity Act › Section 12-704 - Discrimination Prohibited; Compliance With or Violation of Federal Equal Credit Opportunity Act

With respect to any aspect of a credit transaction:
(1)    A creditor may not discriminate against any applicant on the basis of sex, marital status, race, color, religion, national origin, or age;
(2)    A creditor that complies with the applicable provisions of the federal Equal Credit Opportunity Act, or regulations adopted under the federal Equal Credit Opportunity Act, is in compliance with the requirements of this subtitle; and
(3)    Any violation of the federal Equal Credit Opportunity Act, or any regulation adopted under the federal Equal Credit Opportunity Act, is a violation of the provisions of this subtitle.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 7 - Equal Credit Opportunity Act › Section 12-705 - "Discriminatory Practices" Defined

Prohibited discriminatory practices include any:
(1)    Refusal to consider both applicants’ income when both parties of a marriage party apply for a joint account;
(2)    Refusal to consider alimony or child support awarded by a court and received by the applicant as a valid source of income, where that source can be verified as to its amount, length of time received, and regularity of receipt;
(3)    Refusal to extend credit to any person solely because of marital status or change in marital status;
(4)    Refusal to issue separate accounts to married persons where each would be credit worthy if unmarried;
(5)    Request for or consideration of the credit rating of an applicant’s spouse where the applicant is otherwise credit worthy and is not applying for a joint account unless the applicant lists credit references in the name of spouse or former spouse or has no individual prior credit history or the creditor permits the applicant to designate the applicant’s spouse as an authorized purchaser on the account;
(6)    Refusal to recognize the legal name of any married person; and
(7)    Requests for or consideration of information about birth control practices in evaluating any credit application.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 7 - Equal Credit Opportunity Act › Section 12-707 - Civil Liability

(a)    Notwithstanding the provisions of § 12–703 of this subtitle, any creditor who violates any provisions of this subtitle is liable to the applicant in an amount equal to the sum of any actual damages sustained by the applicant acting either in an individual capacity or as a representative of a class.
(b)    Any creditor who fails to comply with any requirement imposed under this subtitle shall be liable to the aggrieved applicant for punitive damages in an amount not greater than $10,000, as determined by the court, in addition to any actual damages provided in subsection (a) of this section. In pursuing the recovery allowed under this subsection, the applicant may proceed only in an individual capacity and not as a representative of a class.
(c)    Notwithstanding subsection (b) of this section, any creditor who fails to comply with any requirement imposed under this subtitle may be liable for punitive damages in the case of a class action in such amount as the court may allow, except that as to each member of the class no minimum recovery shall be applicable, and the total recovery in such action shall not exceed the lesser of $100,000 or 1 percent of the net worth of the creditor. In determining the amount of award in any class action, the court shall consider, among other relevant factors, the amount of any actual damages awarded, the frequency and persistence of failures of compliance by the creditor, the resources of the creditor, the number of persons adversely affected, and the extent to which the creditor’s failure of compliance was intentional.
(d)    When a creditor fails to comply with any requirement imposed under this subtitle, an aggrieved applicant may institute a civil action for preventive relief, including an application for a permanent or temporary injunction, restraining order, or other action.
(e)    In the case of any successful action to enforce the foregoing liability, the costs of the action together with a reasonable attorney’s fee as determined by the court shall be added to any damages awarded by the court under the provisions of subsections (a), (b), and (d) of this section.
(f)    A creditor does not violate this subtitle if the creditor shows by a preponderance of evidence in any administrative or judicial proceeding that the violation was not willful or resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.
(g)    An action under this title may be brought in any district court or circuit court, depending upon the amount in controversy, within one year from the date of the occurrence of the violation.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 8 - Loans -- Finder's Fees › Section 12-801 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Borrower” means an individual who obtains a loan or advance of money.
(c)    “Commissioner” means the Commissioner of Financial Regulation.
(d)    “Finder’s fee” means any compensation or commission directly or indirectly imposed by a broker and paid by or on behalf of the borrower for the broker’s services in procuring, arranging, or otherwise assisting a borrower in obtaining a loan or advance of money.
(e)    “Lender” means a person defined as a mortgage lender under § 11–501(j)(1)(ii) of the Financial Institutions Article.
(f)    “Mortgage broker” means a person defined as a mortgage lender under § 11–501(j)(1)(i) of the Financial Institutions Article.
(g)    “Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 8 - Loans -- Finder's Fees › Section 12-804 - Fees Mortgage Broker Permitted to Charge

(a)    A mortgage broker may charge a finder’s fee not in excess of 8 percent of the amount of the loan or advance.
(b)    In addition to a finder’s fee, a mortgage broker may charge a borrower for the actual cost of:
(1)    Any appraisal, credit report, condominium document, or subordination agreement document obtained by the mortgage broker at the written request of the borrower; and
(2)    Any other good or service, as specified in regulations adopted by the Commissioner, that is required to complete a loan application process and that, at the written request of the borrower, is paid by the mortgage broker to a third–party provider of the good or service.
(c)    A mortgage broker obtaining a mortgage loan with respect to the same property more than once within a 24–month period may charge a finder’s fee if the fee is not in excess of 8% of the initial loan amount when combined with the finder’s fee charged on the initial loan and on any other finder’s fee collected during that 24–month period.
(d)    The provisions of this section do not apply to:
(1)    The charging of fees and charges otherwise permitted under this title; or
(2)    Attorney’s fees unless the attorney is functioning as a mortgage broker.
(e)    A mortgage broker may not charge a finder’s fee in any transaction in which the mortgage broker or an owner, part owner, partner, director, officer, or employee of the mortgage broker is the lender or an owner, part owner, partner, director, officer, or employee of the lender.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 8 - Loans -- Finder's Fees › Section 12-805 - Payment of Finder's Fee

(a)    A mortgage broker may not receive any fee in the form of a note, mortgage, or other evidence of indebtedness.
(b)    Payment of the finder’s fee to the mortgage broker out of the proceeds of the loan is not considered as interest to the lender if the finder’s fee is not in excess of that permitted by this subtitle.
(c)    If the finder’s fee is paid from the proceeds of the loan, the lender shall comply with the disclosure provisions of § 12–106 of this title or the federal Truth in Lending Act and in addition shall advise the borrower, in writing, of the borrower’s right to a refund of the finder’s fee upon the exercise of any right of rescission of the loan.
(d)    (1)    A finder’s fee may not be charged unless it is pursuant to a written agreement between the mortgage broker and the borrower which is separate and distinct from any other document.
(2)    The terms of the proposed agreement shall:
(i)    Be disclosed to the borrower before the mortgage broker undertakes to assist the borrower in obtaining a loan or advance of money;
(ii)    Specify the amount of the finder’s fee; and
(iii)    Contain a representation by the mortgage broker that the mortgage broker is acting as a mortgage broker and not as a lender in the transaction.
(3)    A copy of the agreement, dated and signed by the mortgage broker and the borrower, shall be provided to the borrower within 10 business days after the date the loan application is completed.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 8 - Loans -- Finder's Fees › Section 12-806 - Refund of Finder's Fee

A borrower is entitled to a refund of any finder’s fee paid to a mortgage broker if:
(1)    The loan transaction is not made to the borrower; or
(2)    The borrower exercises his right to rescind the loan transaction under the federal Truth in Lending Act or any similar federal or State law.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 8 - Loans -- Finder's Fees › Section 12-808 - Circumstances Under Which Broker May Not Collect Fee

A licensed real estate broker, insurer, salesman, attorney-at-law, or agent thereof who arranges or procures a mortgage may not collect a finder’s fee if, in addition to acting as broker under this subtitle, he is also acting as a real estate broker, insurer, salesman, attorney-at-law, or agent thereof in connection with the subject property or transaction.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-902 - Authorized Extensions of Credit

(a)    Any credit grantor may, subject to the other provisions of this subtitle:
(1)    Offer and extend credit under a revolving credit plan to a borrower and in that connection charge and collect the interest, finance charges, and other charges permitted by this subtitle;
(2)    (i)    Take any security as collateral as may be acceptable to the credit grantor.
(ii)    If real property is taken as security, the credit grantor shall record the entire line of credit when the credit plan is established.
(b)    Without limiting subsection (a) of this section, credit may be extended under a revolving credit plan by a credit grantor’s acquisition of obligations arising out of the honoring of a credit device made available to a borrower under a plan, whether directly or indirectly by means of telephone, point of sale terminal, automated teller machine or other electronic or similar device, or through the mails, by:
(1)    A merchant;
(2)    A bank or other financial institution chartered or organized under the laws of this or any other state, the District of Columbia, the United States or any district, territory, or possession of the United States, or any foreign country;
(3)    Any other person or entity; or
(4)    A government or governmental subdivision or agency.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-904 - Variation in Periodic Percentage Rate

(a)    If the agreement governing the revolving credit plan so provides, the periodic percentage rate of interest or finance charges under the plan may vary in accordance with an index or formula that:
(1)    Is made readily available to and verifiable by the borrower;
(2)    Is beyond the control of the credit grantor; and
(3)    May be within the control of the borrower.
(b)    The periodic percentage rate, as varied, may be made applicable to all outstanding unpaid indebtedness on or after the effective date of the variation, including any indebtedness arising out of purchases made or loans obtained prior to the variation.
(c)    The periodic percentage rate, as varied, may not exceed the maximum rate permitted pursuant to § 12–903(a)(1) of this subtitle.
(d)    If a formula used under subsection (a)(3) of this section measures credit risk, the periodic percentage rate of interest or finance charges:
(1)    Shall be lower for any consumer borrower measured as more creditworthy under the formula; and
(2)    If the formula considers delinquency or arrearages, may not be raised unless a consumer borrower is at least 2 months in arrears in payment.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-906 - Plan Authorizing Both Loans and Purchases

(a)    If the agreement governing a revolving credit plan permitting the borrower to obtain both loans and purchases so provides, a credit grantor may impose different terms on the indebtedness arising out of purchases than to the indebtedness arising out of loans.
(b)    Subsection (a) of this section applies to all terms, including:
(1)    The terms governing the periodic percentage rate used to calculate interest or finance charges;
(2)    The method of computing the outstanding unpaid indebtedness to which the periodic percentage rate is applied;
(3)    The amounts of other charges; and
(4)    The applicable repayment schedule.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-907 - Plan Connected With Demand Deposit Account

(a)    If credit under a revolving credit plan is offered and extended by a credit grantor which is a depository institution in connection with a demand deposit account or other transaction account maintained by the borrower with the credit grantor under an agreement or arrangement where the credit grantor agrees to honor checks, drafts, or other debits to the account by making extensions of credit to the borrower under a revolving credit plan, any charges customarily imposed by the credit grantor under the terms governing the account in the absence of any associated revolving credit plan may continue to be imposed on the account without specific reference or incorporation in the agreement governing the revolving credit plan.
(b)    The account charges referred to in subsection (a) of this section include:
(1)    Check charges;
(2)    Monthly maintenance charges;
(3)    Checkbook charges;
(4)    Charges for checks drawn in excess of an available line of credit; or
(5)    Any similar charges.
(c)    The amount of any charge imposed on the account may be charged to the account under the plan as a loan and may be included in the outstanding unpaid indebtedness under the terms of the agreement governing the revolving credit plan, to the extent the balance in the demand deposit or other transaction account is insufficient to pay the charge.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-908 - Deferral of Scheduled Payments; Deferral Charge

A credit grantor may at any time allow a borrower under a revolving credit plan to defer scheduled payments and charge the borrower a deferral charge agreed to by the credit grantor and the borrower.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-909 - Insurance Generally

(a)    In connection with a plan established for a consumer borrower:
(1)    The purchase of credit life, credit accident and health, credit disability, involuntary unemployment benefit, and similar coverages is optional with the consumer borrower; and
(2)    Subject to § 12-909.1 of this subtitle, the purchase of property insurance, title insurance, and credit loss insurance from an insurer of the borrower’s choice may be required if the loan is secured.
(b)    The provisions of this section do not alter or modify rights, privileges, or restrictions heretofore existing between the credit grantor and a nonconsumer borrower.
(c)    Premiums for any insurance coverage permitted by this section are not interest or finance charges under the plan.
(d)    The offering and placement of insurance under this section shall be subject to the provisions of the Insurance Article.
(e)    (1)    (i)    In this subsection the following words have the meanings indicated.
(ii)    “Improvements” means buildings or structures erected upon or affixed to real property that enhance the value of the real property.
(iii)    “Property insurance coverage” means property insurance against losses caused by perils that commonly are covered in insurance policies described with terms similar to “standard fire” or “standard fire with extended coverage”.
(iv)    1.    “Replacement cost” means the amount needed to repair damage to or rebuild improvements on real property to restore the improvements to their pre-loss condition.
2.    “Replacement cost” does not include the value of land.
(2)    (i)    A credit grantor may not require a borrower, as a condition to receiving or maintaining a loan secured by a lien, to provide or purchase property insurance coverage against risks to any improvements on any real property in an amount exceeding the replacement cost of the improvements on the real property.
(ii)    In determining the replacement cost of the improvements on any real property, the credit grantor may:
1.    Accept the value placed on the improvements by the insurer; or
2.    Use the value placed on the improvements by the credit grantor’s appraisal of the improvements.
(3)    A violation of this subsection shall entitle the borrower to:
(i)    Seek an injunction to prohibit the credit grantor who has engaged or is engaging in the violation from continuing or engaging in the violation;
(ii)    Reasonable attorney’s fees; and
(iii)    Damages directly resulting from the violation.
(4)    A violation of this subsection does not affect the validity of the lien securing the loan.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-909.1 - Insurance Binders

(a)    In this section, “binder” means a binder or other temporary contract of insurance as provided under § 12-106 of the Insurance Article.
(b)    A credit grantor shall comply with this section if the credit grantor:
(1)    Makes any loan secured by a first lien on any interest in owner-occupied residential real property; and
(2)    As a condition of making the loan, requires the consumer borrower to purchase property insurance or credit loss insurance.
(c)    A credit grantor who makes a loan subject to this section shall accept as evidence of insurance a written binder issued by any authorized insurer or its insurance producer if the binder includes or is accompanied by:
(1)    The name and address of the insured consumer borrower;
(2)    The name and address of the credit grantor;
(3)    A description of the insured residential real property;
(4)    A provision that the binder may not be canceled within the term of the binder unless the credit grantor and the insured consumer borrower receive written notice of the cancellation at least 10 days prior to the cancellation;
(5)    Except in the case of the renewal of a policy subsequent to the closing of the loan, a paid receipt for the full amount of the applicable premium; and
(6)    The amount of coverage.
(d)    This section does not prohibit a credit grantor from refusing to honor a binder in cases where:
(1)    The credit grantor receives notice of the cancellation of the binder by the insurer; or
(2)    At the expiration of 30 days of the date the binder was given, the insurer has failed to issue the policy of insurance.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-910 - Charges for Default or Delinquency

(a)    If the agreement governing a revolving credit plan permits, a credit grantor may:
(1)    For a nonconsumer borrower, charge a higher periodic percentage rate of interest on outstanding unpaid payments or portions of payments under the plan which are in default; and
(2)    For any borrower, impose:
(i)    A late or delinquency charge on payments or portions of payments; and
(ii)    If payment is made with a check that is dishonored on the second presentment, a charge not to exceed $15.
(b)    (1)    No more than one late or delinquency charge may be imposed for any single scheduled payment or portion regardless of the period during which it remains in default.
(2)    For the purpose of this subsection, all payments by the borrower shall be applied to satisfaction of scheduled payments in the order in which they become due.
(3)    Charges permitted by this section may not be considered interest or finance charges under the plan.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-911 - Attorney's Fees; Court or Other Collection Costs

(a)    If a borrower defaults under the terms of a plan and the credit grantor refers the borrower’s account to an attorney who is not a salaried employee of the credit grantor for collection, the credit grantor may, if the agreement governing the revolving credit plan permits, charge and collect from the borrower a reasonable attorney’s fee.
(b)    If the agreement governing the revolving credit plan permits, the credit grantor may recover from the borrower all court or other collection costs actually incurred by the credit grantor relating to the borrower’s default.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-913 - Applicability of Other Laws

(a)    Unless otherwise provided under the express terms of the agreement governing a revolving credit plan, the provisions of Subtitle 1, 3, 4, 5, 6, or 10 of this title do not apply to any extension of credit made pursuant to a revolving credit plan if:
(1)    The plan is established before October 1, 1993; and
(2)    The extension of credit is made under this subtitle before October 1, 1993.
(b)    For the purposes of subsection (a) of this section, an extension of credit is made under this subtitle if:
(1)    The credit grantor has made a written election to do so in the agreement governing the plan; or
(2)    The agreement governing the plan is offered pursuant to the provisions of this subtitle.
(c)    For the purposes of subsection (a) of this section, if there is no written election to extend credit under this subtitle in the agreement governing the plan, the burden of proof is on the credit grantor to show the agreement governing the plan was offered pursuant to this subtitle.
(d)    Any plan established before October 1, 1993 is not subject to § 12-913.2 of this subtitle.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-913.1 - Election of Applicable Laws

(a)    (1)    On or after October 1, 1993, a credit grantor may at its option elect to offer a plan to any borrower either pursuant to this subtitle or as otherwise permitted by applicable law.
(2)    In order for a plan to be established under and governed by this subtitle, a credit grantor shall make a written election to that effect in the agreement governing the plan.
(b)    (1)    If a credit grantor elects in accordance with this section to establish a plan under this subtitle, the provisions of Subtitle 1, 3, 4, 5, 6, or 10 of this title do not apply to the plan.
(2)    If a person fails to elect in accordance with this section to establish a plan under this subtitle, the provisions of this subtitle do not apply.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-913.2 - Delivery of Plan Agreement; Proof of Delivery

(a)    The credit grantor shall deliver a copy of the agreement governing the plan to the borrower no later than 30 days after the credit grantor establishes the account governed by the agreement for the borrower’s use.
(b)    If there is more than one borrower, a copy of the agreement governing the plan may be delivered to any borrower who is primarily liable on the account.
(c)    Written acknowledgment by a borrower of delivery in accordance with this section of a copy of the agreement governing the plan is conclusive proof of delivery as between the borrower and any assignee of the account established under the plan without actual knowledge to the contrary.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-914 - General Provisions

(a)    If any provision of this subtitle is held invalid, the invalidity shall not affect any other provision of this subtitle which can be given effect without the invalid provision.
(b)    Notwithstanding any other provisions of this title, a plan under this subtitle is subject only to the disclosure requirements of this subtitle and, to the extent applicable, of the federal Truth in Lending Act and regulations promulgated thereunder.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-915 - Applicability of Certain Provisions of Financial Institutions Article; License to Be Issued by Commissioner of Financial Regulation

(a)    A credit grantor making a loan or extension of credit under this subtitle is subject to the licensing, investigatory, enforcement and penalty provisions of Title 11, Subtitle 3 of the Financial Institutions Article unless the credit grantor or the loan or extension of credit is exempt under Title 11, Subtitle 3 of the Financial Institutions Article.
(b)    In addition to any license which may be required by subsection (a) of this section, a credit grantor making a loan or extension of credit under this subtitle secured by any lien on residential real property is subject to the licensing, investigatory, enforcement and penalty provisions of Title 11, Subtitle 5 of the Financial Institutions Article unless the credit grantor or the loan or extension of credit is exempt under Title 11, Subtitle 5 of the Financial Institutions Article.
(c)    If a license is required by this section, it shall be issued by the Commissioner of Financial Regulation.
(d)    (1)    An extension of credit made under this subtitle prior to October 1, 1994 by a home improvement contractor may not be deemed unenforceable or violative of this section because the contractor was not licensed under Title 11, Subtitle 3 of the Financial Institutions Article.
(2)    Paragraph (1) of this subsection does not apply to any person engaged in the business of making loans at the time the credit was extended.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-917 - Criminal Penalties

Any credit grantor or his officer or employee who willfully violates any provision of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 1 year, or both.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-918 - Civil Penalties

(a)    (1)    In this subsection, “notice” means the first to occur of the following:
(i)    When the credit grantor receives a written notice from the borrower notifying the credit grantor of an error or violation;
(ii)    When the credit grantor receives a written notice from the Commissioner of Financial Regulation or the appropriate regulatory authority notifying the credit grantor of an error or violation; or
(iii)    When the credit grantor receives service of process in a civil action for an error or violation instituted by the borrower in a court of competent jurisdiction.
(2)    Except for a bona fide error of computation, if a credit grantor violates any provision of this subtitle the credit grantor may collect only the principal amount of credit extended and may not collect any interest, costs, fees, or other charges with respect to the credit extension.
(3)    The penalty provided under paragraph (2) of this subsection does not apply where a credit grantor:
(i)    Unintentionally and in good faith fails to comply with § 12-903, § 12-904, § 12-905, § 12-910, § 12-911, § 12-913.2, § 12-923(d), or § 12-924 of this subtitle; and
(ii)    Corrects the error or violation and makes the borrower whole for all losses, including reasonable attorney’s fees and interests, where appropriate, within 10 days after the credit grantor receives notice of the error or violation.
(4)    The burden shall be on the credit grantor to show that the credit grantor’s failure to comply with § 12-903, § 12-904, § 12-905, § 12-910, § 12-911, § 12-913.2, § 12-923(d), or § 12-924 of this subtitle was unintentional and in good faith.
(b)    A credit grantor who knowingly violates any provision of this subtitle shall forfeit to the borrower 3 times the amount of interest, fees, and charges collected in excess of that authorized by this subtitle.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-918.1 - Civil Penalties -- Exception

(a)    In this section, “Commissioner” means the Commissioner of Financial Regulation.
(b)    Except as provided in subsection (c) of this section, the penalty provided under § 12–918(a)(2) of this subtitle does not apply if a credit grantor:
(1)    Performed or omitted to perform an act in conformity with or in reliance on:
(i)    A written opinion of the Attorney General of Maryland or a regulation adopted by the Commissioner;
(ii)    A written opinion by the Commissioner or Deputy Commissioner; or
(iii)    An interpretation by the Commissioner in a written notice or examination report; or
(2)    Used a form or procedure that has been approved in writing by the Commissioner and the Attorney General.
(c)    The provisions of subsection (b) of this section do not apply to an act or omission to act that occurs after:
(1)    The opinion, regulation, or interpretation relied on is amended, repealed, or determined to be invalid for any reason by any judicial or other authority; or
(2)    Approval for a form or procedure is amended, rescinded, or determined to be invalid for any reason by any judicial or other authority.
(d)    This section may not be construed to:
(1)    Limit the imposition of any civil or criminal penalty for a knowing or willful violation of this subtitle; or
(2)    Limit the power of the Commissioner or the courts to order a refund to a borrower of moneys collected in violation of this subtitle.