Section 12-303 – Application of Subtitle
(a) (1) This subtitle applies to a loan of $25,000 or less made for personal, family, or household purposes. (2) Except as provided in paragraph (3) of this subsection, this subtitle applies regardless of: (i) Whether the transaction is or purports to be made under this subtitle; (ii) Whether the transaction is or purports to be an installment loan; (iii) The […]
Section 12-116 – Refinancing of Loan at Higher Rate
Any loan made before July 1, 1982, which is refinanced at a higher rate pursuant to § 12–103(a) and (c) of this subtitle or § 12–306 or § 12–404 of this title must comply with the following requirements: (1) The lender must give the following disclosures in writing to the borrower prior to the execution by […]
Section 12-304 – Advertising
(a) A lender may not directly or indirectly print, publish, distribute, or broadcast any false, misleading, or deceptive statement regarding the rates, terms, or conditions of a loan. (b) (1) If charges or rates of charges are advertised by a licensee, the Commissioner may require him to state them fully and clearly in any manner the Commissioner considers […]
Section 12-105 – Charges Not Considered Interest
(a) In this section, “mortgage loan” has the meaning stated in § 11–501 of the Financial Institutions Article. (b) Fees and charges collected at the direction of and actually paid to a government or governmental agency may be collected and are not interest under this subtitle. (c) Except as provided in subsection (d) of this section, if the […]
Section 12-106 – Statements to Be Furnished by Lender
(a) This section does not apply to any loan: (1) Described in § 12-103(e) of this subtitle; or (2) Made under Title 18, Subtitle 10 of the Education Article. (b) (1) Before the execution of a loan contract under this title, the lender shall furnish to the borrower a written statement which sets forth: (i) The total principal amount of the […]
Section 12-106.1 – Requiring False Statement That Loan Is Commercial Loan
(a) A person may not require a borrower, as a condition to receiving a loan, to make any false or misleading statement or characterization that a loan is a commercial loan under § 12–101(c), § 12–103(e), or § 12–105 of this subtitle or § 12–401(i)(3) of this title if the loan is not a commercial loan. […]
Section 12-107 – Computing Interest Rate if Charge Assessed at Inception of Loan
If a charge or fee considered interest under this subtitle is charged at or before the inception of a loan contract, the effective rate of simple interest permitted to be charged by §§ 12-102 and 12-103 of this subtitle, and required to be disclosed by § 12-106 of this subtitle shall be determined in the […]
Section 12-108 – Points Prohibited; Exceptions; Charges Which Lenders May Impose
(a) Except for a loan described in § 12–103(d) or (e) of this subtitle, a lender may not charge a borrower or any other person any point or fraction of a point. (b) Notwithstanding the provisions of subsection (a) of this section, a lender may charge points on a mortgage loan which is not insured or guaranteed […]
Section 12-109 – Interest on Escrow Accounts; Statement of Balance
(a) (1) In this section the following words have the meanings indicated. (2) “Escrow account” means an expense or escrow account which tends to protect the security of a loan by the accumulation of funds for the payment of taxes, insurance premiums, water and sewer facilities assessments, or other expenses. (3) “Lending institution” means a bank, savings bank, or […]
Section 12-109.1 – Use of Escrow Account Funds for Certain Purposes Prohibited
(a) The provisions of this section do not apply to escrow accounts maintained in connection with loans described in § 12–103(e)(1) of this subtitle. (b) Except in a foreclosure, release, or as provided in subsection (c) of this section, funds in any escrow account for use in paying taxes, insurance premiums, ground rents, and water and sewer […]