reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 4 - Secondary Mortgage Loans -- Credit Provisions › Section 12-402.1 - Applicable Provisions Governing Loans

(a)    (1)    On or after January 1, 2019, a lender may, at the lender’s option, elect to make a loan to any borrower either under this subtitle or as otherwise authorized by applicable law.
(2)    In order to make a loan under this subtitle, a lender shall make a written election in the agreement, note, or other evidence of the loan specifying that this subtitle will govern the loan.
(b)    (1)    If a lender elects to make a loan under this subtitle in accordance with this section, Subtitles 1, 3, 9, and 10 of this title do not apply to the loan.
(2)    If a lender who makes or contracts to make a loan does not make a written election under this subtitle or Subtitle 1, Subtitle 3, Subtitle 9, or Subtitle 10 of this title:
(i)    Subtitle 1 of this title will apply to the loan if the loan is:
1.    For an amount over $25,000; or
2.    A.    For an amount of $25,000 or less; and
B.    Not subject to Subtitle 3 of this title; or
(ii)    Subtitle 3 of this title will apply to the loan if the loan is:
1.    For an amount of $25,000 or less; and
2.    Subject to Subtitle 3 of this title.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 4 - Secondary Mortgage Loans -- Credit Provisions › Section 12-403 - False Advertising

(a)    A person may not advertise directly or indirectly in the State any false or misleading statement regarding secondary mortgage loans or their availability.
(b)    This section does not apply to the owner, publisher, operator, or employee of any publication or radio or television station which disseminates the statement without knowledge of its false or misleading character.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 4 - Secondary Mortgage Loans -- Credit Provisions › Section 12-403.1 - Discrimination Prohibited

In granting or denying any application for a loan, a lender may not discriminate against any loan applicant solely on the basis of age. Refusal to grant a loan to an applicant who is under the age of 18 is not discrimination solely on the basis of age.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 4 - Secondary Mortgage Loans -- Credit Provisions › Section 12-404.1 - Fees, Discounts, Points, etc., Permitted by Mortgage Purchase Programs

Notwithstanding the provisions of §§ 12-404, 12-405(a), and 12-411 of this subtitle, a lender may impose and collect, as a condition of making a loan, all fees, discounts, points, or other charges that lenders are permitted or required to impose, collect, or pay pursuant to a federal law providing for a program of mortgage purchases or loans originated pursuant to a State or local governmental program of direct lending or mortgage purchase, or by any federal agency or instrumentality or subsidiary thereof, including but not limited to the Government National Mortgage Association, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Reserve Bank, the Federal Home Loan Bank, and the Farmers Home Administration, if the following conditions are met:
(1)    The loan is eligible for purchase pursuant to a commitment or offer to purchase by the federal, State, or local government agency, instrumentality, or subsidiary; and
(2)    (i)    The sum of the fees, discounts, points, or other charges imposed plus the interest rate on the loan does not exceed 24 percent; and
(ii)    The fees, discounts, points, or other charges imposed and the interest rate on the loan do not exceed those allowed by the applicable federal law providing for the mortgage purchase program.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 4 - Secondary Mortgage Loans -- Credit Provisions › Section 12-405 - Permitted Charges

(a)    (1)    A lender may collect a loan origination fee for making a loan under this subtitle only as provided in this section.
(2)    The aggregate amount of the loan origination fee imposed by a lender under this section when combined with any finder’s fee imposed by a mortgage broker under § 12-804 of this title may not exceed the greater of:
(i)    $500 or 10 percent of the net proceeds of a commercial loan of $75,000 or less made under this subtitle; or
(ii)    $250 or 10 percent of the net proceeds of any other loan made under this subtitle.
(3)    A lender may not collect from the borrower any other commission, finder’s fee, or point for obtaining, procuring, or placing a loan under this subtitle.
(4)    A lender who utilizes the provisions of § 12-404.1 of this subtitle, relating to federal second mortgage purchase programs, is not entitled to the origination fee provided for in paragraph (2) of this subsection in addition to the fees, discounts, points, or charges allowed under § 12-404.1(2) of this subtitle. All other second mortgage programs in this State are limited to the charges and fees provided in paragraph (2) of this subsection.
(b)    A lender may collect the fees paid to a public official or governmental agency for recording or satisfying the instrument securing the loan.
(c)    (1)    A lender may collect from the borrower a delinquent or late charge of the greater of $2 or 5 percent of the amount of any delinquent or late periodic installment, if:
(i)    The delinquency has continued for at least 10 days; and
(ii)    A delinquent or late charge has not already been charged for the same delinquency.
(2)    The lender shall deduct the charge from the next payment made by the borrower.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 4 - Secondary Mortgage Loans -- Credit Provisions › Section 12-406 - Restrictions on Payment of Commissions, Finder's Fees, and Points

(a)    Except as permitted by § 12-405(a) of this subtitle, any commission, finder’s fee, or point shall be paid by the lender, and may be paid only to:
(1)    A licensed real estate broker;
(2)    A lawyer licensed to practice law in the State; or
(3)    A licensee.
(b)    An agreement to pay a commission, finder’s fee, or point may not be enforced unless it is in writing and signed by the lender.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 4 - Secondary Mortgage Loans -- Credit Provisions › Section 12-407.1 - Form for Secondary Mortgage Loan; Required Statements; Charges Permissible Under 12-404.1; Compliance With 12-401(i)(3)

(a)    The Commissioner shall develop and prepare a form that each lender shall furnish to an applicant for a secondary mortgage loan. The form shall state the following:
(1)    The purpose for which the loan is to be used;
(2)    A disclosure that, if the loan is for a commercial purpose, the borrower shall forfeit certain rights.
(b)    The form shall state that the forfeiture of rights includes:
(1)    The borrower’s right to pay a loan origination fee that, when combined with any finder’s fee imposed by a mortgage broker under § 12-804 of this title, does not exceed the greater of:
(i)    $500 or 10 percent of the net proceeds of a commercial loan of $75,000 or less made under this subtitle; or
(ii)    $250 or 10 percent of the net proceeds of any other loan made under this subtitle;
(2)    The borrower’s right not to pay any other commission, finder’s fees, or points for obtaining, procuring, or placing a loan; and
(3)    The borrower’s right not to pay an interest rate greater than 24 percent.
(c)    This section does not prevent a lender from imposing fees, discounts, points, or other charges whenever permitted under § 12-404.1 of this subtitle concerning mortgage loan programs of state and federal agencies.
(d)    Compliance with the provisions of this section does not relieve the lender or mortgage broker from the provisions of § 12-401(i)(3) of this subtitle.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 4 - Secondary Mortgage Loans -- Credit Provisions › Section 12-409 - Prohibited Provisions in Instruments Which Evidence or Secure Loan

An instrument which evidences or secures a loan may not contain any:
(1)    Acceleration clause under which any part or all of the unpaid balance of the loan not yet matured may be declared due and payable for any reason other than default by the debtor in the payment or in another required term of the instrument;
(2)    Provision by which the debtor waives any right accruing to him under the provisions of this subtitle; or
(3)    Assignment or order for the payment of wages, whether earned or to be earned.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 4 - Secondary Mortgage Loans -- Credit Provisions › Section 12-413 - Civil Penalties

Except for a bona fide error of computation, if a lender violates any provision of this subtitle he may collect only the principal amount of the loan and may not collect any interest, costs, or other charges with respect to the loan. In addition, a lender who knowingly violates any provision of this subtitle also shall forfeit to the borrower three times the amount of interest and charges collected in excess of that authorized by law.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 4 - Secondary Mortgage Loans -- Credit Provisions › Section 12-414 - Criminal Penalty

Any lender, his officer or employee and any other person 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 one year or both.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 5 - Retail Credit Accounts › Section 12-502 - Application of Subtitle

(a)    Each retail credit account established after May 31, 1967 shall comply with this subtitle.
(b)    (1)    Notwithstanding any situs of contract specified in it, a retail credit account is made in this State and is subject to this subtitle if:
(i)    The seller offers or agrees in this State to sell to a resident buyer of this State; or
(ii)    The resident buyer of this State accepts or makes the offer in this State to buy.
(2)    A verbal or written solicitation or communication to sell that originates outside the State but that is forwarded to and received in the State by a resident buyer of this State shall be construed as an offer or agreement to sell in this State.
(3)    A verbal or written solicitation to buy that originates in this State from a resident buyer of this State and that is forwarded to and received by a retail seller outside this State shall be construed as an acceptance or offer to buy in this State.
(c)    This subtitle does not apply to an installment sale agreement, as defined in § 12-601 of this title, relating to goods, as defined in that section, regardless of the cash sale price of the goods.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 5 - Retail Credit Accounts › Section 12-504 - Maximum Finance Charge -- in General

(a)    Notwithstanding any other statutory law, a seller, financial institution, or the successor in interest of either may charge, collect, and receive under a retail credit account a finance charge, however described, not to exceed the amounts permitted in §§ 12-505 and 12-506 of this subtitle.
(b)    If the date of performance or delivery of an item or service is more than 10 days from the date of purchase, the finance charge shall be computed from the date of performance or delivery.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 5 - Retail Credit Accounts › Section 12-505.1 - Maximum Finance Charge -- Closed End Account -- Refinancing at Higher Rate

Any closed end account made prior to July 1, 1982 which is refinanced at a higher rate pursuant to § 12–505(a)(3) of this subtitle must comply with the following requirements:
(1)    The holder must give the following disclosure in writing to the buyer prior to the execution by the buyer of the new retail credit account agreement:
If you do agree to consolidate your existing account, you will be paying an annual percentage rate of ..... on the existing net balance of $........, instead of the rate of ....... which you are now paying.
Schedule of Monthly Payments
Separate Account Agreements              Consolidated Account Agreement
$....... per month for                   $....... per month for
the next ....... months                  the next ....... months
then
$....... per month for
....... months after that
Total of Payments
Separate Account Agreements              Consolidated Account Agreement
$....... total of                      $....... total of
payments for your                     payments  for your
existing account                     consolidated account
....... total of payments
for your new account
(2)    The holder must allow the buyer the choice of repaying his existing account balance at the originally agreed upon rate and obtaining any additional extension of credit as a separate account, notwithstanding any law which limits the holder’s ability to establish more than 1 account for the same buyer;
(3)    An account may be refinanced only upon the buyer’s request;
(4)    The holder must refund or credit to the buyer’s account any unearned finance charge and any returned insurance premiums upon the cancellation of insurance sold in connection with the obligation;
(5)    The holder must allow the buyer the right to cancel the consolidated purchase agreement within 3 business days and to elect the separate account option pursuant to subsection (2). The holder shall provide to the buyer conspicuous notice of the provisions of this subsection; and
(6)    Nothing in this subsection shall prohibit the receipt of goods or services by the buyer at the time the consolidated purchase agreement is made.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 5 - Retail Credit Accounts › Section 12-505.2 - Maximum Finance Charge -- Closed End Account -- Change in Finance Charge During Term of Account Prohibited

A seller or holder may not enter into a closed end retail credit account agreement, providing for an initial rate of finance charge pursuant to § 12-505(a)(3) of this subtitle, which contains a provision that permits the seller or holder to increase or decrease the applicable rate of finance charge from time to time during the term of the account.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 5 - Retail Credit Accounts › Section 12-506.1 - Credit Balances

(a)    In this section “credit balance” means a balance on an open end retail credit account which indicates that the buyer has made payments or obtained refunds in excess of charges, resulting in a credit due to the buyer.
(b)    If there is a credit balance in excess of $1 on any retail credit account:
(1)    The holder shall send to the buyer a monthly statement which indicates the amount of the credit balance; and
(2)    If the credit balance remains the same after four consecutive monthly statements, the holder shall send to the buyer a check or money order in the full amount of the credit balance.
(c)    The provisions of this section shall apply only to credit balances remaining the same after four consecutive monthly statements for billing periods commencing after July 1, 1975.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 5 - Retail Credit Accounts › Section 12-506.2 - Limitations Upon Changes in Rate Applicable to Open End Account

Changes in the rate applicable to an open end account, including a credit card plan which provides for sales, cash advances, or both, are limited as follows:
(1)    Any balance existing before July 1, 1982 is to be repaid at the then applicable rate of interest or finance charge regardless of any subsequent increase in the rate applicable to the account.
(2)    If the rate applicable to any balance for which the borrower or buyer becomes obligated on or after July 1, 1982 is increased, the borrower or buyer may repay the existing balance at the rate in effect prior to the time the increase becomes effective. If the borrower or buyer increases the balance of his account by making purchases or requesting cash advances, the increased rate shall apply only to the portion of the balance incurred after the rate increases.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 5 - Retail Credit Accounts › Section 12-507 - Note Taken as Part of Account

(a)    If, as part of a retail credit account, a promissory note is taken by the seller or financial institution, the note shall refer to the account out of which it arises.
(b)    The note may not contain a confession of judgment or any power of attorney to appear for the buyer or for any surety or guarantor for the buyer to confess judgment.
(c)    If the note is assigned, it is subject to all defenses which the buyer might have asserted against the seller or financial institution.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 5 - Retail Credit Accounts › Section 12-510 - Failure to Answer Status Inquiry

If a buyer inquires in writing about the status of his account and the holder fails to answer the inquiry in clear and definite terms within 60 days after receiving it, the buyer is not required to pay a finance charge for that 60-day period or for any further period during which the holder fails to so answer.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 5 - Retail Credit Accounts › Section 12-513 - Violation of Subtitle

(a)    Except as provided in subsection (b) of this section, if a holder violates any provision of this subtitle, no holder may collect or receive any finance charge from the buyer.
(b)    (1)    If the seller or any subsequent holder unintentionally and in good faith fails to comply with any provision of §§ 12-504 through 12-507 of this subtitle, the holder may correct the error within 10 days after:
(i)    He notices it; or
(ii)    The buyer notifies him in writing of the error.
(2)    If the holder corrects the error within the 10-day period, he may not be subject to any penalty under this subtitle.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 5 - Retail Credit Accounts › Section 12-514 - Jurisdiction of Commissioner of Financial Regulation

(a)    If a complaint for violation of any provision 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 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 his principal place of business.
(c)    (1)    If, after the hearing, the Commissioner finds that the person has engaged or is engaging in any act or practice prohibited by 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 orders.
(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 purposes of this section, the Commissioner’s order may not apply to any:
(1)    Incorporated bank, savings institution, or trust company; or
(2)    A savings and loan association.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-602 - False Advertising Prohibited

A seller or sales finance company may not make in any advertisement, publication, display, broadcast, solicitation, or representation any false, misleading, or deceptive statement relating to:
(1)    Any finance, delinquency, or extension charge or rate; or
(2)    The security interest, collateral, terms, or conditions on which it will make or finance any installment agreement.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-603 - Discrimination Prohibited

A seller or sales finance company may not discriminate against a buyer solely on the basis of the sex, marital status, geographic area of residence, neighborhood of residence, or age of the buyer. Refusal to grant credit to a buyer who is under the age of 18 is not discrimination solely on the basis of age.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-604 - Form of Installment Sale Agreement

An installment sale agreement shall be evidenced by an instrument in writing which contains all of the agreements of the parties. It shall be signed by all parties before the seller delivers to the buyer any of the goods covered by the agreement.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-605 - Delivery of Installment Sale Agreement and Receipt; Right to Cancel

(a)    (1)    At or before the time the buyer signs an installment sale agreement, the seller shall deliver to him an exact copy of it.
(2)    If the seller does not sign the copy, and if, within 15 days after the buyer signs the installment sale agreement, the seller does not deliver to the buyer a copy of it signed by the seller, the installment sale agreement and the instruments signed by the buyer are void without any action by the buyer, and the seller immediately shall refund to the buyer all of his payments and deposits.
(b)    (1)    Until the buyer signs an installment sale agreement and receives a copy of it signed by the seller, he has an unconditional right to cancel it and receive immediate refund of all payments and deposits made on account or in contemplation of it.
(2)    The buyer’s request for the refund operates as cancellation of the installment sale agreement.
(c)    Until the buyer signs an installment sale agreement and receives a copy of it signed by the seller, if a payment or deposit is accepted by the seller, he immediately shall deliver to the buyer a receipt for it which clearly states in 12-point type or larger the buyer’s rights under subsection (b) of this section.
(d)    An acknowledgment of delivery of a copy of an installment sale agreement shall be printed in 12-point type or larger, and, if the acknowledgment is contained in the agreement, it shall be printed immediately below the signature to the agreement and independently signed.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-607 - Provisions Not Allowed in Instruments

(a)    A holder may not take or receive any instrument from a buyer or a surety for a buyer, which contains:
(1)    Except as provided in subsection (b) of this section, any blank space to be filled in after the instrument is signed by a party to it;
(2)    A confession of judgment or any power of attorney to appear for the buyer or for a surety for the buyer to confess judgment;
(3)    A schedule of payments under which any installment, except the down payment, is more than double the average of all other installments, excluding the down payment, or under which the interval between any consecutive installments is less than one-half the average of all other intervals, unless the buyer is given an absolute right, on default in any of the excess or irregular installments, to have the schedule of unpaid installments, including that in default, revised to conform in both amounts and intervals to the average of all preceding installments and intervals;
(4)    A provision for repossession of the goods or for the acceleration of the time when any part or all of the time balance becomes payable, if the condition of the repossession or acceleration is that the holder considers himself insecure;
(5)    A provision by which the buyer waives or purports to waive a tort claim or by which the seller has the right to enter unlawfully upon any premises;
(6)    A provision by which a person acting on behalf of a holder in connection with the formation or execution of an agreement is treated as an agent of the buyer; or
(7)    An assignment or order for payment of wages, whether earned or to be earned.
(b)    If, at the time of its execution, an installment sale agreement contains a sufficient description of the goods as required by § 12-606 of this subtitle, further serial numbers or other identifying marks on the goods may be inserted in the agreement on delivery of the goods.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-608 - Catalog Sale

(a)    This section applies to an installment sale agreement negotiated and entered into without personal solicitation by a salesman or other representative of a seller, if the seller’s prices, terms of payment, and other terms are clearly set forth in a catalog or other printed solicitation of business which is generally available to the public and contains at least two copies of the form of the agreement.
(b)    If the buyer enters into a sale described in subsection (a) of this section, all of the provisions of this subtitle apply, except that:
(1)    The seller is not required to deliver a copy of the installment sale agreement to him;
(2)    If the installment sale agreement received by the seller from the buyer contains blank spaces to be filled in or corrections to be made, the seller may insert or correct in the appropriate blank spaces the amounts of money and other terms set forth in the seller’s catalog then in effect; and
(3)    Instead of the copy of the installment sale agreement required by § 12-605 of this subtitle, the seller shall furnish to the buyer, within 15 days from the date of shipment of the goods, a written statement of the items inserted in the blank spaces.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-610 - Consumer Goods -- Maximum Finance Charge

Except as provided in § 12-609 of this subtitle as to a motor vehicle, and notwithstanding the provisions of any other statutory law, in the retail sale of consumer goods bought under an installment sale agreement, including any add-on contract described in § 12-618 of this subtitle, the finance charge may not exceed the greater of:
(1)    An amount computed using the following annual simple interest rates of finance charge:
(i)    22 percent on that part of the outstanding balance not exceeding $1,000; and
(ii)    18 percent on that part of the outstanding balance exceeding $1,000; or
(2)    A minimum charge of $10 or, if the date of the last installment is eight months or less after the effective date of the installment sale agreement, $8.
(3)    Notwithstanding the provisions of subsection (1) of this section, a seller may charge a finance charge at a rate not in excess of 24 percent per annum simple interest on the outstanding balance under an installment sale agreement made on or after July 1, 1982.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-610.1 - Consumer Goods -- Refinancing of Agreement at Higher Rate

Any agreement made before July 1, 1982, which is refinanced at a higher rate allowed by § 12–609(f) or § 12–610(3) of this subtitle must comply with the following requirements:
(1)    The holder must give the following disclosures in writing to the buyer prior to the execution by the buyer of the new agreement:
If you do agree to consolidate your existing obligation, you will be paying an annual percentage rate of  . . . .% on the existing net balance of $. . . . . ., instead of the rate of  . . . . .% which you are now paying.
Schedule of Monthly Payments
Separate Purchase Agreements             Consolidated Purchase Agreement
$ . . . . per month for                 $ . . . . per month for
the next . . . . months                 the next . . . . months
then
$ . . . . per month for
. . . . months after that
Total of Payments
Separate Agreements                 Consolidated Agreement
$ . . . . total of                      $ . . . . total of payments
payments for your                      for your consolidated
existing purchases                      purchases
. . . . total of payments
for your new purchases
(2)    The holder must allow the buyer the choice of repaying his existing purchase balance at the originally agreed upon rate and obtaining any additional extension of credit as a separate agreement, notwithstanding any law which limits the holder’s ability to have more than 1 agreement with the same buyer;
(3)    An existing balance may be refinanced only upon the buyer’s request;
(4)    The holder must refund or credit to the buyer’s account any unearned finance charge and any returned insurance premiums upon the cancellation of insurance sold in connection with the purchases;
(5)    The holder must allow the buyer the right to cancel the consolidated purchase agreement within 3 business days and to elect the separate account option pursuant to subsection (2). The holder shall provide to the buyer conspicuous notice of the provisions of this subsection; and
(6)    Nothing in this subsection shall prohibit the receipt of goods or services by the buyer at the time the consolidated purchase agreement is made.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-610.2 - Consumer Goods -- Change in Finance Charge Prohibited

A holder may not enter into a retail installment sales agreement, providing for an initial rate of finance charge pursuant to § 12-609(f) or § 12-610(3) of this subtitle, which contains a provision that permits the holder to increase or decrease the applicable rate of finance charge from time to time during the term of an agreement.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-611 - Consumer Goods -- Computation of Finance Charge; Payment of Installments; Payment After Assignment

(a)    (1)    The finance charge under an installment sale agreement relating to consumer goods or a motor vehicle may be computed:
(i)    On the actual unpaid principal outstanding from time to time; or
(ii)    In advance, at the time the agreement is made, by adding to the principal balance the amount of the finance charge that would be earned if the installment sale agreement were repaid exactly according to its terms at the applicable rate.
(2)    Nothing in this subtitle shall be construed to prohibit any particular method of computing the finance charge on an installment sale agreement so long as the amount of the finance charge does not result in a rate of finance charge in excess of that permitted by § 12-609 or § 12-610 of this subtitle, as applicable.
(b)    Amounts due under an installment sale agreement relating to consumer goods may be payable in successive monthly, semimonthly, or weekly installments.
(c)    As part of the regular practice of a holder, he may include fractional periods of 15 days or more as a whole month if he also entirely excludes fractional periods of 14 days or less.
(d)    Unless the buyer has notice of an assignment of an installment sale agreement relating to consumer goods, his payments to the last known holder of the agreement shall discharge his obligation to the extent of the payments.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-612 - Consumer Goods -- Prepayment

(a)    Notwithstanding the provisions of § 12-601(k) of this subtitle, for the purposes of this section, “goods” means any personal property bought for use primarily for personal, family, or household purposes regardless of the cash price of the goods.
(b)    A buyer may prepay at any time, without penalty, all or part of the outstanding balance payable under an installment sale agreement relating to consumer goods.
(c)    (1)    Except as provided in subsection (d) of this section, if the buyer pays the balance in full before maturity, the holder immediately shall refund to him a portion of the finance charge, including the charge provided for in § 12-610(2) of this subtitle.
(2)    The amount of the refund shall be calculated according to the actuarial method based on the original schedule of payments.
(d)    If a prepayment is made, the holder is entitled to retain a finance charge of at least $6.
(e)    If the amount of the credit prepayment is less than $1, no refund need be made.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-613 - Insurance

(a)    The provisions of this section are in addition to and not in substitution for any other applicable provision of statutory law.
(b)    If a holder undertakes at the expense of the buyer to sell, purchase, or supply insurance on the goods sold, the amount charged the buyer for the insurance may not exceed the lesser of:
(1)    The premium actually payable by the holder; or
(2)    The rate charged for similar insurance coverage by those companies whose rates are promulgated by a nationally recognized organization of underwriters.
(c)    (1)    If the buyer is charged for insurance, the holder shall deliver or mail to the buyer at his address shown on the agreement, within 25 days after delivery of the goods, a copy of each insurance policy or an owner’s certificate representing the policy, which sets forth:
(i)    The amount of the premium, type of insurance, scope of coverage, and each term, exception, limitation, restriction, and condition of the insurance contract; and
(ii)    If the goods sold include a motor vehicle, a definite statement in 12-point bold type or larger as to whether the insurance includes coverage for personal liability and for property damage caused to others.
(2)    If the holder assigns the agreement and has not complied with the requirements of this subsection, the assignee shall deliver or mail in like manner to the buyer the copy or certificate, within the same period or within five days after the assignment, whichever is later.
(d)    Each cancellation, surrender, or other refund and each dividend received under the insurance policy by the holder immediately shall be remitted to the buyer or credited against any amount then due by the buyer to the holder under the agreement.
(e)    (1)    If the amount charged for insurance exceeds the amount authorized by subsection (b) of this section, the buyer may deduct the overcharge from the amount of any payment.
(2)    If the buyer does not deduct the overcharge from his payment, the holder shall credit the amount of the overcharge against the last installment or installments under the agreement.
(f)    (1)    If the seller or his assignee does not comply with the requirements of subsection (c) of this section, the buyer may deduct the full amount charged to him for the insurance from the amount of any payment.
(2)    If the buyer does not deduct the amount charged from his payment, the holder shall credit the amount charged against the last installment or installments under the agreement.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-614 - Additional Charges

(a)    Except as provided in subsection (b) of this section, a holder may not directly or indirectly contract for, charge, or receive from a buyer or a surety for a buyer on account of or in connection with any agreement, any charge or amount for the extension of credit, interest, fees, commissions, delinquency, collection, repossession, and foreclosure or otherwise.
(b)    A holder may charge the buyer the following charges or fees:
(1)    Subject to the provisions of § 12-630 of this subtitle, the time balance of an installment sale agreement;
(2)    If allowed by a court as costs, the official fees paid to a public official in connection with a proceeding to:
(i)    Recover possession of the goods;
(ii)    Enforce any obligation of the buyer or his surety; or
(iii)    Realize on any security interest or collateral security;
(3)    If no charge was made in the agreement on account of the insurance for the period covered, the premiums for insurance as provided by § 12-613 of this subtitle;
(4)    The amount paid for copies of agreements and statements of accounts pursuant to § 12-621 of this subtitle;
(5)    Charges permitted by:
(i)    §§ 12-623 and 12-626 of this subtitle for delinquencies and repossession expenses; and
(ii)    Law for extensions and refunds; and
(6)    An amount not exceeding $15 if payment is made with a check that is dishonored on the second presentment.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-615 - Refund of Deposit

(a)    (1)    If, in addition to any down payment, a buyer is required under an installment sale agreement to make a payment to a seller before the seller is obligated to deliver the goods sold, the buyer may cancel the installment sale agreement before delivery or tender of the goods by the seller.
(2)    Notwithstanding any provision of the installment sale agreement, if it is canceled pursuant to this subsection, the seller shall refund to the buyer within ten days after notice of the cancellation an amount equal to at least 90 percent of all payments made by the buyer under the installment sale agreement, including any down payment.
(b)    If, because of a down payment made under an installment sale agreement, the buyer is entitled to delivery of the goods before making any further payment and the buyer refuses to accept delivery of the goods in accordance with the installment sale agreement, all or part of his down payment may be forfeited to the extent provided in the installment sale agreement.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-616 - Credit for Recording and Filing Fees

(a)    If the holder does not pay out to a public official the full amount charged to the buyer for filing and recording instruments, the buyer shall receive credit for the amount so charged to him and not paid out.
(b)    The holder shall credit the amount of the overcharge against the last installment or installments under the agreement.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-617 - Payments and Receipts

(a)    (1)    If a payment is made on account of an agreement, the person receiving the payment shall give the buyer on his request, or, if payment is made in cash, without request, a complete written receipt for the payment.
(2)    If the buyer specifies that the payment is made on one of several obligations, the receipt shall so indicate. However, this provision does not affect the allocation of payments under an add-on contract pursuant to § 12-618 of this subtitle.
(b)    (1)    Unless a written notice of actual or intended assignment of an agreement is given to the buyer, he may pay or tender any amount due under the agreement or give any notice required by the agreement or this subtitle to the last known holder of the agreement.
(2)    A payment, tender, or notice so given is binding on any subsequent holder or assignee as fully as if made to him.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-618 - Add-on Contract

(a)    In this section, “add-on contract” means an installment sale agreement which allows the inclusion in it of additional goods subsequently purchased and under which the amount due on the subsequent purchase is combined with an unpaid balance on any prior purchase so as to permit the seller to retain a security interest in all goods under that agreement.
(b)    If goods are purchased under an add-on contract, the seller shall deliver to the buyer and attach to the add-on contract, at the time of the additional purchase, a statement which:
(1)    Contains all information regarding the additional purchase required by § 12-606 of this subtitle; and
(2)    Shows:
(i)    The amount due on the installment sale agreement immediately before the additional purchase;
(ii)    The amount due after the additional purchase;
(iii)    The payments agreed to be made subsequently; and
(iv)    The number of additional months required to complete the payments.
(c)    (1)    If a payment is made on an add-on contract after an additional purchase is added, the payment is considered as applied to each of the separate purchases in the same proportion which the cash price of each purchase bears to the total cash price of all goods in which the seller retains a security interest.
(2)    Before repossessing or attempting to repossess any goods under an add-on contract, the seller shall apply all payments made to him by the buyer in the manner provided by paragraph (1) of this subsection.
(3)    If the amount due on any separate purchase is paid fully, the goods paid for are the absolute property of the buyer and may not be subject to repossession for any subsequent default on the agreement.
(d)    The buyer under an add-on contract may prepay at any time the amount due on any of the separate purchases in the manner provided by § 12-620 of this subtitle.
(e)    If the goods subject to an add-on contract are repossessed, the buyer may redeem any of the separate purchases by payment of the amount due on that purchase alone.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-619 - Extension of Due Date or Deferral of Payments

(a)    The holder of an installment sale agreement on which the finance charge is computed in advance may:
(1)    By agreement with the buyer, extend the scheduled due date or defer the scheduled payment of all or part of the installments payable under it; and
(2)    Charge the buyer an extension or deferral charge.
(b)    The extension or deferral charge may not exceed an amount equal to 1 percent per month of the amount extended or deferred for the period of extension or deferral.
(c)    The period of extension or deferral may not exceed the period from the date when the extended or deferred amount would have been payable in the absence of the extension or deferral to the date when the amount is made payable under the agreement of extension or deferral.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-620 - Prepayment

(a)    Notwithstanding the provisions of § 12-601(k) of this subtitle and any provision of an installment sale agreement to the contrary, a buyer may prepay at any time, without penalty, all or any part of the unpaid time balance payable under the installment sale agreement if such agreement is for the retail sale of personal property purchased primarily for personal, family, or household purposes, regardless of the original price of that personal property.
(b)    (1)    Except as provided in paragraph (2) of this subsection, if the buyer pays the time balance in full before maturity, the holder immediately shall refund to him a portion of the finance charge. The amount of the refund shall be calculated by the actuarial method based on the original schedule of payments.
(2)    If the amount of the credit for prepayment is less than $1, no refund need be made.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-621 - Statement of Account

(a)    At any time after execution of an agreement, but not later than one year after the last payment is made under it, the holder shall deliver or mail to the buyer at his last known address, within 10 days after the holder receives a written request from the buyer, a copy of the agreement and a signed statement which sets forth:
(1)    The amount paid by or on behalf of the buyer, and the allocation of the amount between principal obligations and charges, including charges for delinquencies, expenses of repossession, extensions, and refunds;
(2)    Any amount which remains payable, and the allocation of the amount between principal obligations and charges, including charges for delinquencies, expenses of repossessions, extensions, and refunds; and
(3)    The number of installments payable in the future, and the amount and time of each.
(b)    The statement shall be supplied free of charge, except that a fee of 50 cents may be charged for any statement supplied within 60 days after a prior statement was supplied.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-622 - Cancellation of Contract and Release of Security

(a)    (1)    After the buyer has paid all sums due under an agreement, the holder shall deliver or mail to the buyer at his last known address, within 15 days after the holder receives a written request from the buyer:
(i)    A signed statement which describes the goods and states that all payments due or to become due under the agreement are paid in full;
(ii)    Good and sufficient instruments to release all security interests in the goods and collateral security owned by the buyer; and
(iii)    Good and sufficient assignments and instruments necessary to vest the buyer with complete evidence of title.
(2)    If the release required by this subsection 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 holder has received full payment.
(b)    After the buyer has paid all sums due under an agreement, the holder shall deliver or mail to each surety for the buyer and to each person who is the owner of collateral security, within 15 days after the holder receives a request from the buyer, surety, or other person:
(1)    A signed statement which shows that the suretyship is completely discharged; and
(2)    Good and sufficient instruments to release any collateral security owned by that person.
(c)    If the holder fails to comply with the requirements of this section, he shall forfeit $10 to the buyer and is liable for damages.
2023 Maryland Statutes › Commercial Law › Title 12 - Credit Regulations › Subtitle 6 - Retail Installment Sales › Part II - Installment Sales › Section 12-623 - Delinquency Charge; Attorney's Fees and Court Costs

(a)    If an agreement on which the finance charge is computed in advance so provides, the holder of the agreement may collect a delinquency or collection charge of the lesser of $10 or 5 percent of the amount of any payment in default, if the default has continued for at least 10 days.
(b)    (1)    In addition to the delinquency or collection charge, the agreement may provide for the payment of:
(i)    Attorney’s fees not exceeding 15 percent of the amount due and payable under the agreement; and
(ii)    Court costs.
(2)    Attorney’s fees may be collected only if the agreement is referred for collection to an attorney who is not a salaried employee of the holder.