784                             LAWS OF MARYLAND                      [CH. 390

SUCH PURPOSES SHALL BE DEEMED TO HAVE MADE A
LOAN SECURED BY A LIEN ON THE REAL ESTATE SITU-
ATE IN THIS STATE. "SECONDARY MORTGAGE LOAN"
SHALL NOT MEAN A LOAN TO ANY CORPORATION UNLESS
THE LENDER REQUIRED THE BORROWER TO INCORPO-
RATE AS A CONDITION FOR OBTAINING THE LOAN.

(b)  "Person" means an individual, corporation, partnership or
any other group of individuals however organized. , but does not in-
clude any banking institution, savings bank, or association subject
to Article 11 of this Code, any Federal savings and loan association,
insurance company, State chartered building and loan association
or any other financial institution which is subject to any other law
of this State or of the United States regulating the power of such
institution to engage in mortgage loan transactions.

(B-1) "LENDER" MEANS A LICENSEE OR A PERSON
MAKING SECONDARY MORTGAGE LOANS IN THE REGULAR
COURSE OF BUSINESS BUT EXEMPTED FROM LICENSING
BY SECTION 41 OF THIS ARTICLE.

(c)   "Licensee" means any person duly licensed by the commis-
sioner pursuant to this subtitle.

(d)  "Commissioner" means the Bank Commissioner of Maryland
or the Deputy Bank Commissioner.

(e)  "Payment period" means the period of time scheduled by the
terms of a secondary mortgage loan to elapse between the days upon
which installment payments are required to be made on such loan.

(f)   "Net proceeds" means the difference between the full amount
of a secondary mortgage loan and the amount of interest taken in
advance upon such loan pursuant to this subtitle plus the amount
of the loan origination fee.

41.

No person , OTHER THAN ANY BANKING INSTITUTION,
SAVINGS BANK, OR ASSOCIATION SUBJECT TO ARTICLE 11
OF THIS CODE, ANY FEDERAL SAVINGS AND LOAN AS-
SOCIATION, INSURANCE COMPANY, STATE-CHARTERED
BUILDING AND LOAN ASSOCIATION OR ANY OTHER FINAN-
CIAL INSTITUTION WHICH IS SUBJECT TO ANY OTHER
LAW OF THIS STATE OR OF THE UNITED STATES REGU-
LATING THE POWER OF SUCH INSTITUTION TO ENGAGE
IN MORTGAGE LOAN TRANSACTIONS shall make or negotiate,
or offer to make or negotiate, any secondary mortgage loan in the
regular course of business unless he or his broker, agent or other
representative shall have first obtained a license from the commis-
sioner as provided for by this subtitle. NOTHING IN THIS SUB-
TITLE SHALL PREVENT ANY OF THE PERSONS EXEMPTED
FROM LICENSING BY THIS SECTION FROM ENGAGING IN
THE ACTS AUTHORIZED BY THIS SUBTITLE, UNLESS SUCH
PERSONS ARE PROHIBITED FROM ENGAGING IN SUCH
ACTS BY ANY LAW OTHER THAN AS CONTAINED IN THIS
SUBTITLE. A person shall be deemed to be acting in the regular
course of business if he makes or negotiates in any calendar year
more than two TEN secondary mortgage loans which bear interest
at any rate greater than six per cent (6%) per annum of the
descending balance or which provide for any charges of whatever