400

LAWS OF MARYLAND

[Ch. 49

business of making loans").
12-203. APPLICATION OF SUBTITLE.

(A)   AMOUNT AND TERM OF LOAN.

A LENDER MAY NOT MAKE A LOAN UNDER THIS SUBTITLE
UNLESS:

(1)    THE LOAN IS IN AN AMOUNT OR VALUE WHICH
DOES NOT EXCEED $500; AND

(2)    THE LOAN PROVIDES FOR A SCHEDULED
REPAYMENT OF PRINCIPAL WHICH DOES NOT EXCEED 30 MONTHS
AND 15 DAYS AFTER THE DATE THE LOAN IS MADE.

REVISOR'S NOTE: This subsection is new language
derived without substantive change from the
introductory language of Art. 58A, §16(a) and
from Art. 58A, §19(b). It is added to express
clearly the scope of this subtitle and to
avoid the present, but unnecessary, repetition
of the $500—limitation for loans made under
its authority.

In item (1), the phrase "amount or value" is
substituted for "amount of value the sum of"
for purposes of clarity.

With respect to the use of the term "lender"
in substitution for "licensee," see revisor's
note to §12-201 (b).

(B)   LOAN MADE BY LENDER ALSO AUTHORIZED TO MAKE
CONSUMER LOANS.

ANY LOAN MADE TO ANY ONE BORROWER BY A LENDER WHO IS
ALSO AUTHORIZED BY LAW TO MAKE CONSUMER LOANS UNDER
SUBTITLE 3 OF THIS TITLE SHALL BE MADE AND GOVERNED
ENTIRELY EITHER BY THIS SUBTITLE OR BY SUBTITLE 3 OF THIS
TITLE.

REVISOR'S NOTE: This subsection is new language
derived without substantive change from the
second clause of Art. 11, §196(b)(2) — now
§12-303(b) - and is repeated in this subtitle
for purposes of emphasis and clarity.

With respect to the use of the term "lender"
in substitution for "licensee," see revisor's
note to §12—201(b).

(C) PURCHASE OR ASSIGNMENT OF WAGES CONSIDERED
LOAN.