Section 12-112 – Usury Not Available Against Bona Fide Assignee
(a) This section does not apply to a loan subject to § 12–114.1 of this subtitle. (b) A claim or plea of usury is not available against a legal or equitable assignee, endorsee, or transferee of any bond, draft, mortgage, deed of trust, security agreement, promissory note, or other instrument or evidence of indebtedness, if he receives […]
Section 12-113 – Discrimination Prohibited
(a) Except as provided in subsection (b) of this section, a lender may not refuse to lend money to any person solely because of: (1) Geographic area or neighborhood; or (2) Race, creed, color, age, sex, marital status, handicap, or national origin. (b) A lender may refuse to make a loan: (1) On property outside a geographic area of the […]
Section 12-101.1 – Applicable Provisions Governing Loans
(a) 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. (b) If a lender makes a written election in the agreement, note, or other evidence of the loan specifying that this subtitle will govern […]
Section 12-114 – Penalties
(a) This section does not apply to a loan subject to § 12–114.1 of this subtitle. (b) (1) Any person who violates the usury provisions of this subtitle shall forfeit to the borrower the greater of: (i) Three times the amount of interest and charges collected in excess of the interest and charges authorized by this subtitle; or (ii) The […]
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 […]