SPIRO T. AGNEW, Governor                        783

CHAPTER 390

(Senate Bill 566)

AN ACT to add new Sections 39 to 71, 70, inclusive, to Article 66 of
the Annotated Code of Maryland (1964 Replacement Volume),
title "Mortgages," to follow immediately after Section 38 thereof,
and to be under the new subtitle "Secondary Mortgage Loan Law";
to generally provide for the licensing of persons in the business
of negotiating secondary mortgage loans, and to generally pro-
vide for the regulations of such persons and such loans, to give
the Banking Commissioner certain duties and powers in the regu-
lation of such persons and such loans, to provide penalties for
violations and to generally relate to secondary mortgage trans-
actions and the regulation of persons in this business.

Section 1. Be it enacted by the General Assembly of Maryland,
That new Sections 39 to 71, 70, inclusive, be and they are hereby
added to Article 66 of the Annotated Code of Maryland (1964 Re-
placement Volume), title "Mortgages," to follow immediately after
Section 38 thereof, and to be under the new subtitle "Secondary
Mortgage Loan Law," and all to read as follows:

Secondary Mortgage Loan Law
39.

This subtitle constitutes and may be cited as "The Maryland
Secondary Mortgage Loan Law."

40.

In this subtitle, unless the context otherwise requires, the follow-
ing words shall have the following meanings:

(a) "Secondary mortgage loan" means a loan secured in whole
or in part by mortgage, deed of trust, security agreement or other
lien on real estate situate in this State which property is subject
to the lien of one or more prior encumbrances, having thereon a
dwelling designed principally as a residence with accommodations
for not more than four families and occupied in whole or in part
at the time the loan is made, or to be so occupied within a reasonable

time after the loan is made, as a home by an obligor on the debt

evidenced by the mortgage, deed of trust, security agreement or
other lien. For the purpose of this paragraph, any person who
ordinarily requires the signing of a confessed judgment note or con-
sent judgment for the purposes of acquiring a lien on any real
estate described herein shall be deemed to have made a loan secured

by a lien on real estate situate in this State. TO THE LIEN OF

ONE OR MORE PRIOR ENCUMBRANCES, OTHER THAN A
GROUND RENT OR OTHER LEASEHOLD INTEREST, HAVING
THEREON A DWELLING DESIGNED PRINCIPALLY AS A
RESIDENCE WITH ACCOMMODATIONS FOR NOT MORE
THAN FOUR FAMILIES. FOR THE PURPOSE OF THIS SUB-
TITLE, ANY PERSON WHO ORDINARILY REQUIRES THE
SIGNING OF A CONFESSED JUDGMENT NOTE OR CONSENT
JUDGMENT FOR THE PURPOSES OF ACQUIRING A LIEN
ON ANY REAL ESTATE DESCRIBED HEREIN OR WHO RE-
QUIRES A SALE AND LEASEBACK OF SUCH PROPERTY FOR