MARVIN MANDEL, Governor

2763

41.

No person, other than 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 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] EXCEPT UNDER THE
PROVISIONS OF THIS SUBTITLE. ANY PERSON WHO MAKES A
SECONDARY MORTGAGE LOAN shall [have] first [obtained]
OBTAIN a license from the Commissioner as provided for by
this subtitle[. Nothing in this subtitle 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. Persons exempted from licensing by
this section by virtue of making less than ten secondary
mortgage loans in any calendar year not in the regular
course of his business and only to aid in the sale of his
residence shall otherwise be bound by the provisions of
this subtitle and entitled to the benefits contained in
it. 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 ten secondary mortgage loans
which bear interest at any rate greater than six percent
(6%) per annum of the descending balance or which provide
for any charges of whatever nature in excess of those
allowed by § 62 of this article. A nonprofit religious
or charitable organization making any secondary mortgage
loan shall not be considered to be acting in the regular
course of business, of making such loans under this
section.], EXCEPT FOR THE FOLLOWING PERSONS OR INSTANCES:

(1)    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.

(2)    ANY PERSON WHO IN AID OF THE SALE OF HIS
OWN RESIDENCE TAKES BACK A DEFERRED PURCHASE MONEY
SECONDARY MORTGAGE.

(3)    ANY PERSON WHO MAKES LESS THAN TEN
SECONDARY MORTGAGE LOANS IN ANY CALENDAR YEAR.