Ch. 588                                   1997 LAWS OF MARYLAND

12-913.1.

(a) (1) On or after October 1, 1993, a credit grantor may at its option elect to
offer a plan to any borrower either pursuant to this subtitle or as otherwise permitted by
applicable law.

(2) In order for a plan to be established under and governed by this subtitle,
a credit grantor shall make a written election to that effect in the agreement governing
the plan.

(b) (1) If a credit grantor elects in accordance with this section to establish a
plan under this subtitle, the provisions of Subtitle 1, 3, 4, 5, 6, or 10 of this title do not
apply to the plan.

(2) [If] EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION, IF a
person fails to elect in accordance with this section to establish a plan under this subtitle,
the provisions of this subtitle do not apply.

(C) NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS TITLE, IF A
PLAN SECURED BY A SECONDARY LIEN ON RESIDENTIAL REAL PROPERTY
CONTAINS AN EXPRESS ELECTION TO BE GOVERNED BY THE LAW OF A STATE
OTHER THAN MARYLAND, BUT AFTER ESTABLISHMENT OF THE PLAN IT IS
DETERMINED BY A COURT TO BE GOVERNED BY TITLE 12 OF THIS ARTICLE, THEN:

(1) THE PLAN IS SUBJECT TO THIS SUBTITLE;

(2)     THE PLAN IS NOT SUBJECT TO SUBTITLE 1, SUBTITLE 3, SUBTITLE 4,
SUBTITLE 5, SUBTITLE 6, OR SUBTITLE 10 OF THIS TITLE; AND

(3)     THE LENDER MAY CURE ANY VIOLATION OF THE REQUIREMENT
UNDER THIS SUBTITLE FOR A LICENSE UNDER TITLE 11, SUBTITLE 3 OF THE
FINANCIAL INSTITUTIONS ARTICLE BY OBTAINING THAT LICENSE FROM THE
COMMISSIONER WITHIN 60 DAYS AFTER THE JUDGMENT OR DECREE ESTABLISHING
THE APPLICABILITY OF TITLE 12 OF THIS ARTICLE BECOMES FINAL, AND ALL RIGHTS
OF APPEAL HAVE EXPIRED OR BEEN EXHAUSTED.

12-1005.

In addition to interest at a periodic percentage rate or rates permitted by §§
12-1003 and 12-1004 of this subtitle, a credit grantor may charge and collect:

(a) (1) [ Loan] SUBJECT TO THE LIMITATIONS IN THIS SECTION, LOAN fees,
points, finder's fees, and other charges[; however, all such charges may not exceed 2
percent of the original extension of credit]-;

(2) In the case of a loan to a consumer borrower, no loan fees, points,
finder's fees, or other charges [may be charged and collected] unless [the]:

(I) THE agreement, note, or other evidence of the loan so provides
and the BORROWER AGREES IN WRITING TO PAY THOSE CHARGES;

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