MARVIN MANDEL, Governor

409

INTEREST IN REAL PROPERTY TO SECURE THE REPAYMENT OF A
LOAN, ANY LIEN TAKEN IN VIOLATION OF THIS SUBSECTION IS
VOID.

(2) THIS SUBSECTION DOES NOT APPLY TO OR
AFFECT A LIEN ON AN INTEREST IN REAL PROPERTY WHICH
RESULTS FROM A JUDGMENT OBTAINED BY THE LENDER BASED ON A
LOAN OTHERWISE SECURED OR UNSECURED.

REVISOR'S NOTE: Subsection (a) of this section
presently appears as Art. 58A, §19(a).

Subsection (b) of this section is new language
derived without substantive change from Art.
58A, §20.

In subsection (a)(2), the phrase "salary,
commissions or other compensation for service"
is deleted as unnecessary in light of the
definition of "wages" in §12—201. The purchase
of wages for consideration of $500 or less is
treated as a loan under this subtitle; in this
regard, see §12—203(c).

In subsection (a) (5) of this section, the more
specific words "security instrument" are
substituted for "security." Also, the
reference to present §16(a) is deleted as
unnecessary; in this regard, see revisor's
note to §12-206 (a) (1) and (c). Also, for
purposes of clarity, the words "principal
amount" are substituted for "actual amount"
and the word "period" is substituted for
"time."

In subsection (b) of this section, the
reference to "chattels real" is deleted as
unnecessary in light of the broad reference to
"any interest in real property."

The only other changes are in style.

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

The General Assembly may wish to compare and,
if appropriate, conform the somewhat different
language of this section and its consumer loan
counterpart, §12—311.

12-209. INSURANCE.

(A) LENDER MAY REQUIRE INSURANCE.