reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-920 - Limitation on Credit Grantor's Liability

A credit grantor is not liable for any failure to comply with a provision of this subtitle if, within 60 days after discovering an error and prior to institution of an action under this subtitle or the receipt of written notice from the borrower, the credit grantor notifies the borrower of the error and makes whatever adjustments are necessary to correct the error.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-923 - Agreements Governing Revolving Credit Plans

(a)    This section applies only to a plan established by a credit grantor under this subtitle for a consumer borrower.
(b)    (1)    Paragraph (2) of this subsection applies only to a loan or an extension of credit primarily for personal, household, or family purposes.
(2)    An agreement governing a revolving credit plan or any instrument which evidences or secures an extension of credit under the plan may not contain:
(i)    An assignment or order for the payment of wages, whether earned or to be earned, or of any chose in action covering lost wages;
(ii)    An acceleration clause under which any part or all of the unpaid balance of any extension of credit not yet matured may be declared due and payable because the credit grantor deems itself insecure;
(iii)    A confession of judgment or any power of attorney authorizing the credit grantor to appear in court to confess judgment against the borrower or a surety or guarantor of the borrower, or any other waiver of the right to notice and an opportunity to be heard in the event of suit or process thereon; or
(iv)    A provision by which a person acting on behalf of a holder of the agreement is treated as an agent of the borrower in connection with its formation or execution.
(3)    Except as expressly allowed by law, an agreement governing a revolving credit plan or any instrument which evidences or secures an extension of credit under the plan may not contain a provision by which the borrower waives any right accruing to the borrower under this subtitle.
(4)    (i)    Any clause or provision in an agreement governing the plan or in any instrument which evidences or secures an extension of credit under a plan that is in violation of this subsection shall be unenforceable.
(ii)    Subject to subparagraph (iii) of this paragraph, the penalties set out under §§ 12-917 and 12-918 of this subtitle do not apply unless the credit grantor attempts to enforce a provision prohibited under this subsection.
(iii)    The penalties set out under §§ 12-917 and 12-918 of this subtitle do not apply to the enforcement by a credit grantor of a provision otherwise prohibited under this subsection where the enforcement was initiated by the credit grantor prior to October 1, 1993.
(c)    Unless a borrower has notice of an assignment of the account established under the plan, any payments made by the borrower to the last known holder of the account shall discharge the borrower’s obligation to the extent of the payments.
(d)    Upon receipt of a cash payment from a borrower, a credit grantor shall give the borrower a written receipt for the payment.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-923.1 - Use of Revolving Credit Plan to Acquire Interest in or to Carry on a Business or Commercial Enterprise

(a)    Any statement or characterization that indicates the borrower intends to use a plan to obtain loans or other extensions of credit solely to acquire an interest in or to carry on a business or commercial enterprise may be relied upon by a credit grantor in establishing a plan, unless the credit grantor knows or should know that the statement or characterization is false or misleading.
(b)    As a condition to the establishment of a plan, a credit grantor may not require a borrower to make any false or misleading statement or characterization that loans or other extensions of credit to be obtained under a plan are commercial loans or for a commercial purpose if the credit grantor knows or should know they are not commercial loans or for a commercial purpose.
(c)    The borrower has the burden of proving that a credit grantor knew or should have known that a statement or characterization described in subsection (a) or (b) of this section was false or misleading when made and that loans or other extensions of credit obtained under a plan were not commercial loans or extensions of credit for a commercial purpose.
(d)    Unless a credit grantor knew or should have known that a statement or characterization described in subsection (a) or (b) of this section was false or misleading when made, a credit grantor shall have no liability under this subtitle if loans or other extensions of credit under a plan are actually used by the borrower other than as commercial loans or other extensions of credit for a commercial purpose.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-924 - Release of Lien Securing Extension of Credit

(a)    (1)    Except as provided in paragraph (2) of this subsection, this section applies only to a plan between a credit grantor and a consumer borrower under which a credit grantor has taken any property as security for credit extended under the plan.
(2)    This section does not apply to a loan to which § 3-105.1 of the Real Property Article applies.
(b)    A credit grantor shall release any recorded mortgage, deed of trust, security agreement, or other lien securing the extension of credit within a reasonable time after:
(1)    The outstanding unpaid indebtedness under a plan has been paid in full;
(2)    There are no further obligations of the credit grantor or the consumer borrower under the plan; and
(3)    The account under the plan is closed.
(c)    The release shall be:
(1)    In writing; and
(2)    Prepared at the expense of the credit grantor.
(d)    (1)    If the credit grantor does not record the release, the credit grantor shall furnish the consumer borrower with the release in a recordable form.
(2)    If the credit grantor records the release, the credit grantor shall furnish the consumer borrower with a copy of the release.
(e)    (1)    If a fee is collected by a credit grantor for the recording of a release:
(i)    The release shall be recorded by the credit grantor; and
(ii)    Any portion of the fee not paid to a governmental entity for recording the release shall be refunded to the borrower.
(2)    If a fee is not collected by a credit grantor for the recording of a release, the credit grantor is not obligated to record the release.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 9 - Credit Grantor Revolving Credit Provisions › Section 12-925 - Credit Grantor to Consider Borrower's Ability to Repay Loan

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Fully indexed rate” means the index rate, as defined in the mortgage loan documents, prevailing at the time the mortgage loan is approved by the credit grantor, plus the margin that will apply after the expiration of an introductory interest rate.
(3)    (i)    “Mortgage loan” has the meaning stated in § 11–501 of the Financial Institutions Article.
(ii)    “Mortgage loan” does not include a reverse mortgage loan.
(b)    A credit grantor may not make a mortgage loan without giving due regard to the borrower’s ability to repay the mortgage loan in accordance with its terms, including the fully indexed rate of the mortgage loan, if applicable, and property taxes and homeowner’s insurance whether or not an escrow account is established for the collection and payment of these expenses.
(c)    (1)    Due regard to a borrower’s ability to repay a mortgage loan must include:
(i)    Consideration of the borrower’s debt to income ratio, including existing debts and other obligations; and
(ii)    Verification of the borrower’s gross monthly income and assets by review of third–party written documentation reasonably believed by the credit grantor to be accurate and complete.
(2)    Acceptable third–party written documentation includes:
(i)    The borrower’s Internal Revenue Service form W–2;
(ii)    A copy of the borrower’s income tax return;
(iii)    Payroll receipts;
(iv)    The records of a financial institution; or
(v)    Other third–party documents that provide reasonably reliable evidence of the borrower’s income or assets.
(3)    This subsection does not apply to a mortgage loan:
(i)    Approved for government guaranty by the Federal Housing Administration, the Veterans Administration, the United States Department of Agriculture, the Maryland Department of Housing and Community Development, or the Community Development Administration; or
(ii)    That refinances an existing mortgage loan if the refinance mortgage loan is:
1.    Offered under the federal Homeowner Affordability and Stability Plan; and
2.    Made available by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1002 - Authorized Extensions of Credit

(a)    Any credit grantor may, subject to the other provisions of this subtitle, offer and extend closed end credit to a borrower.
(b)    In connection with closed end credit offered and extended under this subtitle, a credit grantor may charge and collect the interest and other charges permitted by this subtitle and may take any security as collateral as may be acceptable to the credit grantor.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1003 - Interest; Balloon Payments

(a)    A credit grantor may charge and collect interest on a loan at any daily, weekly, monthly, annual, or other periodic percentage rate as the agreement, the note, or other evidence of the loan provides if the effective rate of simple interest is not in excess of 24 percent per year. The rate of interest chargeable on a loan must be expressed in the agreement as a simple interest rate or rates.
(b)    (1)    Interest may be calculated by way of simple interest or by any other method as the agreement, note, or other evidence of the loan provides. If the interest is precomputed, it may be calculated on the assumption that all scheduled payments will be made when due.
(2)    For purposes of this section, a year may be any period of from 360 to 366 days, including or disregarding the effect of leap year, as the credit grantor may determine.
(c)    (1)    (i)    Except as provided in paragraph (2) of this subsection, if an installment loan under this subtitle made to a consumer borrower is secured by collateral other than a lien on residential real property, the credit grantor may not require a schedule of repayment under which a consumer borrower may be required to pay a balloon payment at maturity.
(ii)    If an installment loan under this subtitle made to a consumer borrower is secured by a secondary lien on residential real property, the credit grantor may require a schedule of repayment providing for a balloon payment at maturity. On request, the consumer borrower is permitted to postpone payment of the balloon payment once for a period not to exceed 6 months. The borrower must continue to make installment payments in the amount required prior to maturity during the extension period. The credit grantor may not impose any charges or fees as a result of allowing an extension period.
(2)    (i)    1.    In this paragraph the following words have the meanings indicated.
2.    “Motorcycle” has the meaning stated in § 11–136 of the Transportation Article.
3.    “Passenger car” has the meaning stated in § 11–144.2 of the Transportation Article.
(ii)    A credit grantor may require a schedule of repayment under which a consumer borrower may be required to pay a balloon payment at maturity if:
1.    The installment loan is secured by a lien on a motor vehicle that is a motorcycle or passenger car; and
2.    The amount of the installment loan exceeds:
A.    $10,000, if the motor vehicle is a motorcycle; and
B.    $30,000, if the motor vehicle is a passenger car.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1004 - Variation in Periodic Percentage Rate

(a)    If the agreement, note, or other evidence of the loan permits, the periodic percentage rate of interest charged and collected on the loan may, if the interest is not precomputed, vary in accordance with an index that is made readily available to and verifiable by the borrower and is beyond the control of the credit grantor.
(b)    The periodic percentage rate, as varied, may be made applicable to any outstanding indebtedness on the loan on and after the effective date of the variation.
(c)    This section does not limit the authority of a credit grantor to charge and collect interest on a loan in the manner and at the rate authorized in any other section of this subtitle.
(d)    The periodic percentage rate, as varied, may not exceed the maximum rate permitted pursuant to § 12-1003(a) of this subtitle.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1006 - Deferral of Scheduled Payments; Deferral Charges; Insurance Premiums

A credit grantor may at any time permit a borrower to defer scheduled payments of a loan and may, in connection with the deferral and by agreement of the credit grantor and borrower:
(1)    Charge and collect deferral charges; and
(2)    Require payment by the borrower of the additional cost to the credit grantor of premiums for continuing in force, until the end of the period of deferral, any insurance coverage provided in connection with the loan.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1007.1 - 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 10 - Credit Grantor Closed End Credit Provisions › Section 12-1008 - Charges for Default or Delinquency

(a)    If the agreement governing a loan permits, a credit grantor may:
(1)    For a nonconsumer borrower, charge a higher periodic percentage rate or rates of interest on the amount of outstanding unpaid payments or portions of payments under the loan which are in default; and
(2)    For any borrower, impose:
(i)    A late or delinquency charge on payment 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)    In the case of a loan to a consumer borrower, no late or delinquency charge may be charged unless the agreement, note, or other evidence of the loan permits. No more than 1 late or delinquency charge may be imposed for any single payment or portion of payment, regardless of the period during which it remains in default.
(c)    For the purposes of subsection (b) of this section, all payments by the borrower shall be applied to satisfaction of scheduled payments in the order in which they become due.
(d)    Charges permitted under this section may not be considered interest or finance charges under the agreement.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1010 - Refinancing

(a)    Except as provided under subsection (c) of this section, a consumer borrower may, with the consent of the credit grantor, refinance the entire outstanding and unpaid amount of a loan, and the credit grantor may charge and collect a refinancing charge in connection with any refinancing in an amount agreed to by the credit grantor and the borrower.
(b)    For purposes of this section, “the entire outstanding and unpaid amount of a loan” is:
(1)    If the interest and charges in respect of the loan were not precomputed, the total of the unpaid balance and the accrued and unpaid interest and charges on the date of refinancing; or
(2)    If the interest and charges on the loan were precomputed, the total of the unpaid balance and the accrued and unpaid charges on the date of refinancing, less the amount which the credit grantor would have been required to refund or credit upon prepayment on the date of refinancing under § 12-1009 of this subtitle governing refunds upon prepayment.
(c)    A credit grantor may not impose any refinancing charges on the refinancing of an installment loan more often than once during any 12-month period of the loan if the loan is:
(1)    Made by the credit grantor;
(2)    Secured by a secondary lien on residential real property; and
(3)    Made to cure a default on the loan being refinanced where the default has been in existence for more than 30 days.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1011 - Attorney's Fees; Court and Other Collection Costs

(a)    If a consumer borrower defaults under the terms of a loan 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, note, or other evidence of the loan permits, charge and collect from the borrower a reasonable attorney’s fee.
(b)    If the agreement, note, or other evidence of the loan permits, the credit grantor may recover from the borrower all court and 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 10 - Credit Grantor Closed End Credit Provisions › Section 12-1012 - Permitted Transactions and Charges

(a)    (1)    This subtitle does not prohibit a credit grantor from including in the loan amount the cost to the borrower of a mechanical repair contract sold in connection with a motor vehicle, provided that the cost of the mechanical repair contract is separately itemized in the financing agreement.
(2)    The cost of a mechanical repair contract sold in connection with a motor vehicle may be included in the loan amount whether or not the motor vehicle is covered by an original manufacturer’s warranty.
(3)    A credit grantor may not require a buyer of a motor vehicle, as a condition of receiving a loan, to enter a mechanical repair contract.
(b)    This subtitle does not prohibit a credit grantor, in connection with a loan to a nonconsumer borrower, from:
(1)    Extending or deferring all or any portion of any scheduled payment under the loan;
(2)    Permitting prepayment or refinancing of the loan in whole or in part;
(3)    Charging and collecting any charges in connection with the matters referred to in paragraphs (1) and (2) of this subsection; or
(4)    Charging and collecting late or delinquency charges, attorney’s fees, or collection charges.
(c)    (1)    This subtitle does not prohibit a credit grantor, in connection with a sale, from including in the loan amount the amounts actually paid or to be paid by the credit grantor pursuant to an agreement with the borrower, on behalf of the borrower to discharge any amount financed under an outstanding loan agreement or installment sale agreement or the unpaid portion of the early termination obligation under any lease or other obligation of the lessee, with respect to a motor vehicle or other property traded in.
(2)    A credit grantor who is a seller of goods or services may not be deemed to be making loans for purposes of § 11-301(b)(6)(i) of the Financial Institutions Article merely by engaging in activities described in paragraph (1) of this subsection.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1013 - Applicability of Other Laws

(a)    Unless otherwise provided under the express terms of the agreement, note, or other evidence of the extension of closed end credit, the provisions of Subtitle 1, 3, 4, 5, 6, or 9 of this title do not apply to an extension of closed end credit if:
(1)    The agreement, note, or other evidence of the extension of credit is made 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, note, or other evidence of the extension of credit; or
(2)    The agreement, note, or other evidence of the extension of credit is made 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, the burden of proof is on the credit grantor to show the agreement, note, or other evidence of the extension of credit was made pursuant to this subtitle.
(d)    Any agreement, note, or other evidence of an extension of credit made before October 1, 1993 is not subject to § 12-1013.2 of this subtitle.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1013.1 - General Provisions

(a)    (1)    On or after October 1, 1993, a credit grantor may at its option elect to make a loan to any borrower either pursuant to this subtitle or as otherwise permitted by applicable law.
(2)    In order to make a loan under this subtitle, a credit grantor shall make a written election to that effect in the agreement, note, or other evidence of the loan.
(b)    (1)    If a credit grantor elects in accordance with this section to make a loan under this subtitle, the provisions of Subtitle 1, 3, 4, 5, 6, or 9 of this title do not apply to the loan.
(2)    If a person fails to elect in accordance with this section to extend closed end credit under this subtitle, the provisions of this subtitle do not apply.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1013.2 - Delivery of Agreement, Note, or Other Evidence of Loan

(a)    (1)    Except as provided under paragraph (2) of this subsection, the credit grantor shall deliver a copy of the agreement, note, or other evidence of the loan to the borrower no later than the time of consummation of the loan.
(2)    If consummation of the loan does not occur in a face-to-face transaction between the credit grantor and the borrower, the credit grantor may delay delivering a copy of the agreement, note, or other evidence of the loan to the borrower until the due date of the first payment.
(b)    If there is more than one borrower, a copy of the agreement, note, or other evidence of the loan may be delivered to any borrower who is primarily liable on the loan.
(c)    Written acknowledgment by a borrower of delivery made in accordance with this section of a copy of the agreement, note, or other evidence of the loan is conclusive proof of the delivery as between the borrower and any assignee of the agreement, note, or other evidence of the loan without actual knowledge to the contrary.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1014 - General Provisions

(a)    If any provision of this subtitle is held invalid, such invalidity shall not affect any other provisions of this subtitle which can be given effect without the invalid provision.
(b)    Notwithstanding any provisions of this title, a loan 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 10 - Credit Grantor Closed End Credit Provisions › Section 12-1015 - 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 an 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 10 - Credit Grantor Closed End Credit Provisions › Section 12-1017 - 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 10 - Credit Grantor Closed End Credit Provisions › Section 12-1018 - 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 the loan and may not collect any interest, costs, fees, or other charges with respect to the loan.
(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 § 12-1003, § 12-1004, § 12-1005, § 12-1008, § 12-1011, § 12-1013.2, § 12-1023(d), § 12-1024, § 12-1025, § 12-1026, § 12-1027, or § 12-1028 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 § 12-1003, § 12-1004, § 12-1005, § 12-1008, § 12-1011, § 12-1013.2, § 12-1023(d), § 12-1024, § 12-1025, § 12-1026, § 12-1027, or § 12-1028 of this subtitle was unintentional and in good faith.
(b)    In addition, 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 10 - Credit Grantor Closed End Credit Provisions › Section 12-1018.1 - 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 § 12–1018(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 upon:
(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 the 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.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1020 - Limitation on Credit Grantor's Liability

A credit grantor is not liable for any failure to comply with a provision of this subtitle if, within 60 days after discovering an error and prior to institution of an action under this subtitle or the receipt of written notice from the borrower, the credit grantor notifies the borrower of the error and makes whatever adjustments are necessary to correct the error.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1023 - Agreement or Other Evidence of Loan

(a)    This section applies only to a loan made by a credit grantor under this subtitle to a consumer borrower.
(b)    (1)    Paragraph (2) of this subsection applies only to a loan or an extension of credit primarily for personal, household, or family purposes.
(2)    An agreement, note, or other evidence of a loan may not contain:
(i)    An assignment or order for the payment of wages, whether earned or to be earned, or of any chose in action covering lost wages;
(ii)    An acceleration clause under which any part or all of the unpaid balance of the loan not yet matured may be declared due and payable because the credit grantor deems itself insecure;
(iii)    A confession of judgment or any power of attorney authorizing the credit grantor to appear in court to confess judgment against the borrower or a surety or guarantor of the borrower, or any other waiver of the right to notice and an opportunity to be heard in the event of suit or process thereon; or
(iv)    A provision by which a person acting on behalf of a holder of the agreement, note, or other evidence of the loan is treated as an agent of the borrower in connection with its formation or execution.
(3)    Except as expressly allowed by law, an agreement, note, or other evidence of a loan may not contain a provision by which the borrower waives any right accruing to the borrower under this subtitle.
(4)    (i)    Any clause or provision in an agreement, note, or other evidence of a loan that is in violation of this subsection shall be unenforceable.
(ii)    Subject to subparagraph (iii) of this paragraph, the penalties set out under §§ 12-1017 and 12-1018 of this subtitle do not apply unless the credit grantor attempts to enforce a provision prohibited under this subsection.
(iii)    The penalties set out under §§ 12-1017 and 12-1018 of this subtitle do not apply to the enforcement by a credit grantor of a provision otherwise prohibited under this subsection where the enforcement was initiated by the credit grantor prior to October 1, 1993.
(c)    Unless a borrower has notice of an assignment of an agreement, note, or other evidence of a loan, any payments made by the borrower to the last known holder of the agreement, note, or other evidence of the loan shall discharge the borrower’s obligation to the extent of the payments.
(d)    Upon receipt of a cash payment from a borrower, a credit grantor shall give the borrower a written receipt for the payment.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1023.1 - Obtaining Loan to Acquire Interest in or to Carry on a Business or Commercial Enterprise

(a)    Any statement or characterization that indicates the borrower intends to obtain a loan solely to acquire an interest in or to carry on a business or commercial enterprise may be relied upon by a credit grantor in making the loan, unless the credit grantor knows or should know that the statement or characterization is false or misleading.
(b)    As a condition to making a loan, a credit grantor may not require a borrower to make any false or misleading statement or characterization that the loan is a commercial loan or for a commercial purpose if the credit grantor knows or should know it is not a commercial loan or for a commercial purpose.
(c)    The borrower has the burden of proving that a credit grantor knew or should have known that a statement or characterization described in subsection (a) or (b) of this section was false or misleading when made and that the loan was not a commercial loan or for a commercial purpose.
(d)    Unless a credit grantor knew or should have known that a statement or characterization described in subsection (a) or (b) of this section was false or misleading when made, a credit grantor shall have no liability under this subtitle if a loan is actually used by the borrower other than as a commercial loan or for a commercial purpose.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1024 - Requirements Upon Loan Repayment

(a)    (1)    Except as provided in paragraph (2) of this subsection, this section applies only to a loan made by a credit grantor to a consumer borrower.
(2)    This section does not apply to a loan to which § 3–105.1 of the Real Property Article applies.
(b)    Within a reasonable time after a loan to a consumer borrower has been repaid in full and all other obligations under the agreement, note, or other evidence of the loan have been fulfilled, a credit grantor shall:
(1)    (i)    Indelibly mark with the word “paid” or “canceled” and return to the consumer borrower each agreement, note, or other evidence of the loan; or
(ii)    Furnish the consumer borrower with a written statement that identifies the loan transaction and states that the loan has been paid in full; and
(2)    Release any recorded mortgage, deed of trust, security agreement, or other lien securing the loan.
(c)    (1)    The release shall be:
(i)    In writing; and
(ii)    Prepared at the expense of the credit grantor.
(2)    If the release required by this section pertains to a motor vehicle, the release shall be filed electronically with the Motor Vehicle Administration in accordance with § 13–108.1 of the Transportation Article within 5 business days after the credit grantor has received full payment.
(d)    (1)    If the credit grantor does not record the release, the credit grantor shall furnish the consumer borrower with the release in a recordable form.
(2)    If the credit grantor records the release, the credit grantor shall furnish the consumer borrower with a copy of the release.
(e)    (1)    If a fee is collected by a credit grantor for the recording of a release:
(i)    The release shall be recorded by the credit grantor; and
(ii)    Any portion of the fee not paid to a governmental entity for recording the release shall be refunded to the borrower.
(2)    If a fee is not collected by a credit grantor for the recording of a release, the credit grantor is not obligated to record the release.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1025 - Written Statement Informing Consumer Borrower of Interest and Charges

(a)    A credit grantor who receives scheduled monthly periodic payments on more than five loans secured by any interest in residential real property or tangible personal property shall furnish to the consumer borrower a written statement informing the consumer borrower of the amount of:
(1)    If the interest and charges on the loan were precomputed:
(i)    Payments credited to reducing the outstanding unpaid balance of the loan, either in terms of a total dollar figure or individually itemized; and
(ii)    The remaining outstanding unpaid balance of the loan; or
(2)    If the interest and charges on the loan were not precomputed:
(i)    Payments credited to reducing the outstanding unpaid principal balance of the loan, either in terms of a total dollar figure or individually itemized;
(ii)    Payments credited to interest and fees, either in terms of a total dollar figure or individually itemized; and
(iii)    The remaining outstanding unpaid principal balance of the loan.
(b)    At the option of the credit grantor, each written statement shall contain the information required in subsection (a)(1)(i) and (2)(i) and (ii) of this section either from the date the loan was made or, if previous written statements have been furnished to the consumer borrower, from the date of the last written statement.
(c)    The written statement shall be furnished to the consumer borrower:
(1)    In the case of loans secured by any interest in residential real property, at least annually; and
(2)    In the case of loans secured by any interest in residential real property or tangible personal property, within a reasonable time after receipt of a written request of a consumer borrower provided the request is made at a reasonable time or interval since the furnishing of the last written statement.
(d)    A credit grantor may charge a fee of up to $5 for each written statement requested by a consumer borrower.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1027 - Lender's Inspection Fee

(a)    In this section, “lender’s inspection fee” means a fee imposed by a credit grantor to pay for a visual inspection of residential real property.
(b)    Except as provided in subsection (c) of this section, a credit grantor may not impose a lender’s inspection fee in connection with a loan made to a consumer borrower that is secured by residential real property.
(c)    A lender’s inspection fee may be imposed on a consumer borrower if the inspection is needed to ascertain completion of:
(1)    Construction of a new home; or
(2)    Repairs, alterations, or other work required by the credit grantor.
(d)    This section does not apply to an appraisal of the value of real property by a credit grantor or to fees imposed in connection with an appraisal.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 10 - Credit Grantor Closed End Credit Provisions › Section 12-1029 - Homeowner Equity Protection

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Fully indexed rate” means the index rate, as defined in the mortgage loan documents, prevailing at the time the mortgage loan is approved by the credit grantor, plus the margin that will apply after the expiration of an introductory interest rate.
(3)    (i)    “Mortgage loan” has the meaning stated in § 11–501 of the Financial Institutions Article.
(ii)    “Mortgage loan” does not include a reverse mortgage loan.
(b)    A credit grantor may not make a mortgage loan without giving due regard to the borrower’s ability to repay the mortgage loan in accordance with its terms, including the fully indexed rate of the mortgage loan, if applicable, and property taxes and homeowner’s insurance whether or not an escrow account is established for the collection and payment of these expenses.
(c)    (1)    Due regard to a borrower’s ability to repay a mortgage loan must include:
(i)    Consideration of the borrower’s debt to income ratio, including existing debts and other obligations; and
(ii)    Verification of the borrower’s gross monthly income and assets by review of third–party written documentation reasonably believed by the credit grantor to be accurate and complete.
(2)    Acceptable third–party written documentation includes:
(i)    The borrower’s Internal Revenue Service form W–2;
(ii)    A copy of the borrower’s income tax return;
(iii)    Payroll receipts;
(iv)    The records of a financial institution; or
(v)    Other third–party documents that provide reasonably reliable evidence of the borrower’s income or assets.
(3)    This subsection does not apply to a mortgage loan:
(i)    Approved for government guaranty by the Federal Housing Administration, the Veterans Administration, the United States Department of Agriculture, the Maryland Department of Housing and Community Development, or the Community Development Administration; or
(ii)    That refinances an existing mortgage loan if the refinance mortgage loan is:
1.    Offered under the federal Homeowner Affordability and Stability Plan; and
2.    Made available by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 11 - Maryland Rental-Purchase Agreement Act › Section 12-1101 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    (1)    “Advertisement” means a commercial message in any medium that aids, promotes, or assists, directly or indirectly, a rental–purchase agreement.
(2)    “Advertisement” does not include in–store merchandising ads.
(c)    “Cash price” means the price at which the lessor would have sold rental property covered by a rental–purchase agreement to the consumer unconditionally for cash on the date of consummation.
(d)    “Consumer” means an individual who rents personal property under a rental–purchase agreement primarily for personal, family, or household purposes.
(e)    “Consummation” means the time at which a consumer enters into a rental–purchase agreement.
(f)    “Cost of lease services” means the difference between the final purchase price of rental property and the cash price of rental property.
(g)    “Lessor” means a person who regularly provides the use of personal property through rental–purchase agreements to consumers and to whom rental payments are initially payable on the face of a rental–purchase agreement.
(h)    “Rental property” means personal property that is the subject of a rental–purchase agreement.
(i)    “Rental–purchase agreement” means an agreement that:
(1)    Is for the use of personal property by an individual primarily for personal, family, or household purposes;
(2)    Is for an initial period of 4 months or less;
(3)    Is automatically renewable for a weekly or monthly period with each rental payment after the initial period; and
(4)    Allows but does not obligate the consumer to become the owner of the property.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 11 - Maryland Rental-Purchase Agreement Act › Section 12-1102 - Effect and Applicability of Subtitle

(a)    A rental-purchase agreement that complies with this subtitle may not be deemed to be:
(1)    A “retail sale”, as defined in § 12-601(s) of this title;
(2)    An “installment sale agreement”, as defined in § 12-601(m) of this title; or
(3)    A “security interest”, as defined in § 1-201(37) of this article.
(b)    This subtitle does not apply to:
(1)    A rental-purchase agreement made primarily for business, commercial, or agricultural purposes, or made with governmental agencies, instrumentalities, or organizations;
(2)    A rental of a safe deposit box;
(3)    A lease or bailment of personal property that:
(i)    Is incidental to the rental of real property; and
(ii)    Provides that the consumer has no option to purchase the rented real property; or
(4)    A lease of an automobile.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 11 - Maryland Rental-Purchase Agreement Act › Section 12-1103 - Disclosures -- in General

(a)    (1)    A lessor shall disclose to a consumer the information required under this subtitle.
(2)    In a transaction involving more than 1 lessor, only 1 lessor need make the disclosures required under this subtitle, but all lessors shall be bound by the disclosures made.
(b)    A lessor shall make the disclosures required under this subtitle before consummation of the rental–purchase agreement.
(c)    A lessor shall:
(1)    Make the disclosures required under this subtitle in a written form that is simple and understandable and is written or typed in a size not less than 10 point type;
(2)    Make the disclosures required under this subtitle in English or in any other language used by the lessor in advertisements related to the rental–purchase transaction;
(3)    Make the disclosures required under this subtitle on the face of the rental–purchase agreement and summary of costs chart above the consumer’s signature lines; and
(4)    Deliver a copy of the rental–purchase agreement and the summary of costs chart to the consumer.
(d)    If a disclosure becomes inaccurate as a result of any act, occurrence, or agreement by the consumer after delivery of the rental property, the resulting inaccuracy is not a violation of this subtitle.