8                                 Laws of Maryland                          [Ch. 1

(c) The licensee's liability under this section may not exceed
the amount owing to the licensee with respect to the sale at the time
the licensee has notice of a claim or defense of the buyer against the
seller. If two or more loans, other than pursuant to a revolving loan
account, are consolidated, payments received after the consolidation
are deemed, for the purpose of determining the amount owing the
licensee with respect to the sale, to have been first applied to the
payment of the loans first made; if the loans consolidated arose from
sales made on the same day, payments are deemed to have been first
applied to the smallest loan. Payments received upon a revolving
loan account are deemed, for the purpose of determining the amount
owing the licensee with respect to the sale, to have been first applied

to the payment of credit service charges in the order of their entry

to the account and then to the payment of loans in the order in which
the entries to the account showing the loans were made.

(D) THE LICENSEE SHALL BE SUBROGATED TO ALL
RIGHTS AND REMEDIES THAT THE BORROWER MAY HAVE
AGAINST THE SELLER.

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