2240                                       LAWS OF MARYLAND                                     Ch. 547

LOAN, THEN THE LENDER IS LIABLE TO THE BORROWER FOR AN
AMOUNT EQUAL TO THREE TIMES THE EXCESS AMOUNT, BUT THE
LENDER MAY CONTINUE TO RECEIVE PRINCIPAL, INTEREST, OR
COMPENSATION WITH RESPECT TO THE LOAN.

(2) The loan contract is not void if the excess
amount is the result of a clerical error or mistake and the
lender corrects the error or mistake:

(i) Before the borrower makes the next
payment on the loan; or

(ii) After the borrower makes the next
payment on the loan, in which event, however, the lender is
liable to the borrower for an amount equal to three times
the excess amount.]

(1) IF THE COURT FINDS THAT A LENDER, HAS IN BAD
FAITH, CONTRACTED FOR, CHARGED, OR RECEIVED ANY AMOUNT IN
EXCESS OF THE CHARGES PERMITTED BY THIS SUBTITLE, THE
BORROWER MAY RECOVER FROM THE LENDER:

(I) ALL EXCESS CHARGES; AND

(II) A CIVIL PENALTY DETERMINED BY THE
COURT OF NOT MORE THAN $500.

(2)(I) IF A LENDER SHOWS THAT A VIOLATION OF
THIS SUBTITLE AS DESCRIBED IN SUBPARAGRAPH (1) OF THIS
SUBSECTION WAS NOT INTENTIONAL OR RESULTED FROM A GOOD FAITH

ERROR, NOTWITHSTANDING THE MAINTENANCE OF PROCEDURES

REASONABLY ADOPTED TO AVOID ERRORS, THE BORROWER MAY RECOVER
FROM THE LENDER ALL EXCESS CHARGES, BUT MAY NOT RECOVER A
CIVIL PENALTY.

(II) IF THE LENDER FAILS TO CORRECT THE
ERROR WITHIN 30 DAYS AFTER DISCOVERY OR RECEIPT OF NOTICE OF
THE ERROR, THE BORROWER MAY RECOVER FROM THE LENDER A CIVIL
PENALTY.

(3) AN ACTION FOR A CIVIL PENALTY UNDER THIS
SECTION MAY NOT BE:

(I) A CLASS ACTION; OR

(II) BROUGHT MORE THAN 2 YEARS AFTER THE
MATURITY OF THE LOAN.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1981.

Approved May 19, 1981.