430                                             LAWS OF MARYLAND                            [Ch. 49

INSTRUMENT WHICH DOES NOT STATE:

(i) THE PRINCIPAL AMOUNT OF THE LOAN;

(ii) A SCHEDULE OF PAYMENTS OR A DESCRIPTION
OF THE SCHEDULE; AND

(iii) THE AGREED AMOUNT OR RATE OF INTEREST,
CHARGES, AND FEES.

(B) PROHIBITED SECURITY - SECURITY INTERESTS FOR
CERTAIN LOANS.

A LENDER MAY NOT TAKE ANY SECURITY INTEREST IN:

(1)    REAL PROPERTY FOR ANY LOAN UNDER $2,000
IN VALUE OR AMOUNT; OR

(2)   PERSONAL PROPERTY FOR ANY LOAN UNDER $700
IN VALUE OR AMOUNT.

REVISOR'S NOTE: Subsection (a) of this section
presently appears as Art. 11, §198.

Subsection (b) of this section presently

appears as Art. 11, §196 (b)(3) and     (4). In

this subsection, the words "value   or amount"

are added to conform to the usage of
§12-303(a) of this subtitle.

The only other changes are in style.

With respect to the use of the word "lender"
in substitution for "licensee," see revisor's
note to §12—301(c).

12-312. INSURANCE.

(A) COLLECTION OF INSURANCE PREMIUMS.

SUBJECT TO THE PROVISIONS OF THIS SECTION, A LENDER
MAY COLLECT FROM THE BORROWER, AT THE OPTION OF THE
BORROWER, THE PREMIUMS PAID TO INSURE:

LOAN; OR
LOAN.

(1) REAL OR PERSONAL PROPERTY SECURING A

(2)   THE LIFE OF ANY PERSON OBLIGATED ON A

(B) LIMITATION ON INSURANCE COVERAGE.

(1) THE AMOUNT OF PROPERTY INSURANCE MAY NOT
EXCEED THE REASONABLE VALUE OF THE PROPERTY INSURED, AND