Section 12-102 – General Legal Rate of Interest
Except as otherwise provided by law, a person may not charge interest in excess of an effective rate of simple interest of 6 percent per annum on the unpaid principal balance of a loan.
Section 12-114.1 – Covered Loan Prohibitions
(a) (1) In this section the following words have the meanings indicated. (2) (i) “Covered loan” means a loan subject to § 12–103(a)(3) or (c) of this subtitle, made for personal, family, or household purposes, regardless of whether the loan is or purports to be made under this subtitle. (ii) “Covered loan” does not include: 1. A loan or an advance […]
Section 12-103 – Other Permitted Rates of Interest; Licensing Requirements
(a) (1) Except as provided in subsections (b), (c), (d), (e), and (f) of this section, a lender may charge interest at an effective rate of simple interest not in excess of 8 percent per year on the unpaid principal balance of a loan if there is a written agreement signed by the borrower which sets forth […]
Section 12-104 – Interest Not Considered Usurious
Interest at a rate otherwise allowed by this subtitle is not usurious solely because of any one or more of the following: (1) For a period of less than one year, interest is calculated on the premise that there are 360 days in the year and 30 days in each month, which may include the date […]
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 […]