2764

LAWS OF MARYLAND

[Ch. 574

(4) ANY BUILDER WHO IN THE AID OF THE SALE
OF NEW RESIDENTIAL DWELLINGS BUILT BY HIM TAKES BACK A
DEFERRED PURCHASE HONEY SECONDARY MORTGAGE.

(5) ANY NON-PROFIT RELIGIOUS OR CHARITABLE
ORGANIZATION.

SECTION 2. AND BE IT FURTHER ENACTED, That
Sections 12-401(c), 12-401(j) and 12-404(c) of Article -
Commercial Law, of the Annotated Code of Maryland (As

enacted by Chapter___(HB26) of the Acts of the General

Assembly of 1975) be and they are hereby repealed and
re-enacted, with amendments, to read as follows:

Article — Commercial Law

12-401.

(c) Lender.

Lender means:

(1)    A Licensee; or

(2)     A person who makes a secondary mortgage
loan but is exempt EXPRESSLY from the licensing
requirements of the Maryland secondary mortgage loan law
— licensing provisions.

(j) Secondary Mortgage Loan.

(1)    "Secondary mortgage loan" means a loan
OR DEFERRED PURCHASE PRICE secured in whole or in part by
a mortgage, deed of trust, security agreement, or other
lien on real property located in the State, which
property:

(i) is subject to the lien of one or more
prior encumbrances, except a ground rent or other
leasehold interest; and

(ii) has a dwelling on it designed
principally as a residence with accommodations for not
more than four families.

(2)      "Secondary mortgage loan" does not
include:

(I)    a loan to any corporation unless the
lender required the borrower to incorporate as a
condition for obtaining the loan[.]; OR

(II) A LOAN FOR A BUSINESS PURPOSE OR