MARVIN MANDEL, Governor

429

REVISOR'S NOTE: This section presently appears as
Art. 11, §196A.

Reference to a loan "under this subtitle" is
deleted as unnecessary in light of the
definition of "loan" in §12-301.

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 §12-301(c).

12-310. COLLATERAL SALE, PURCHASE, OR AGREEMENT IN
CONNECTION WITH LOAN.

(A)   PROFIT OR ADVANTAGE CONSIDERED CHARGE.

FOR PURPOSES OF THIS SUBTITLE, ANY PROFIT OR
ADVANTAGE WHICH A PERSON CONTRACTS FOR, COLLECTS,
RECEIVES, OR OBTAINS BY A COLLATERAL SALE, PURCHASE, OR
AGREEMENT IN CONNECTION WITH NEGOTIATING, ARRANGING, OR
MAKING A LOAN IS CONSIDERED A CHARGE FOR THE LOAN.

(B)   EXCEPTION.

THIS SECTION DOES NOT APPLY TO A COMMISSION RECEIVED
BY A MARYLAND LICENSED INSURANCE AGENT OR BROKER ON
INSURANCE SOLD UNDER THIS SUBTITLE AT LAWFUL RATES.

REVISOR'S NOTE: This section presently appears as
Art. 11, §201.

Reference to a loan "of $3,500 or less" is
deleted as unnecessary in light of the
provisions of §12—303(a) and the definition of
"loan" in §12-301.

The only other changes are in style.

12-311. CERTAIN SECURITY FOR LOAN NOT ALLOWED.

(A) PROHIBITED SECURITY - IN GENERAL.

A LENDER MAY NOT TAKE AS SECURITY FOR A LOAN ANY:

(1) CONFESSION OF JUDGMENT OR POWER OF
ATTORNEY TO HIM OR TO A THIRD PERSON TO CONFESS JUDGMENT
OR APPEAR FOR THE BORROWER IN A JUDICIAL PROCEEDING;

(2) INSTRUMENT IN WHICH BLANKS ARE LEFT TO BE
FILLED AFTER EXECUTION; OR

(3) NOTE, PROMISE TO PAY, OR SECURITY