MARVIN MANDEL, Governor                              413

provisions of Art. 58A, §§ 16(c), (e) , and (f)
and 21 (a).

In item (1) of this subsection, the words
"fee" and "fine" are added to conform to the
similar provision relating to consumer loans,
contained in §12—313 (a) (1) of this title. In
item (3), the term "during coverture" is
deleted as obsolete.

Note that §12-201(b) provides that, for the
purpose of this section, "lender" includes a
licensed parent, subsidiary, or affiliate of a
lender.

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

The Commission notes that the consumer loan
counterpart to item (2) of this subsection —
now contained in §12—313(a)(2) of this article
— prohibits the division of loans both for the
purpose of or "with the effect of" obtaining
excess charges. The General Assembly may wish
to consider conforming these provisions to
each other.

(B) WHEN LOAN CONTRACT VOID; TREBLE DAMAGES.

(1)    EXCEPT AS PROVIDED IN PARAGRAPH (2) OF
THIS SUBSECTION, IF A LENDER DIRECTLY OR INDIRECTLY
CONTRACTS FOR, CHARGES, OR RECEIVES ANY AMOUNT IN EXCESS
OF THAT PERMITTED BY THIS SUBTITLE, THE LOAN CONTRACT IS
VOID AND UNENFORCEABLE, AND THE LENDER MAY NOT RECEIVE OR
RETAIN ANY PRINCIPAL, INTEREST, CHARGES, OR COMPENSATION
WITH RESPECT TO THE LOAN.

(2)   THE LOAN CONTRACT IS NOT VOID IF THE
EXCESS AMOUNT IS THE RESULT OF A CLERICAL ERROR OR
MISTAKE AND THE LICENSEE CORRECTS THE ERROR OR MISTAKE:

(i) BEFORE THE BORROWER MAKES THE NEXT
PAYMENT ON THE LOAN; OR

(ii) AFTER THE BORROWER MAKES THE NEXT
PAYMENT ON THE LOAN, IN WHICH EVENT, HOWEVER, THE
LICENSEE IS LIABLE TO THE BORROWER FOR AN AMOUNT EQUAL TO
THREE TIMES THE EXCESS AMOUNT.

REVISOR'S NOTE: This subsection is new language
derived without substantive change from Art.
58A, §§ 16(d) and 22(a).