432

LAWS OF MARYLAND

[Ch. 49

(A)       PROHIBITION.

WITH RESPECT TO ANY LOAN, A LENDER MAY NOT:

(1)    DIRECTLY OR INDIRECTLY CONTRACT FOR,
CHARGE, OR RECEIVE ANY INTEREST, DISCOUNT, FEE, FINE,
COMMISSION, CHARGE, BROKERAGE, OR OTHER CONSIDERATION IN
EXCESS OF THAT PERMITTED BY THIS SUBTITLE; OR

(2)   DIVIDE INTO SEPARATE PARTS ANY CONTRACT
MADE FOR THE PURPOSE OR WITH THE EFFECT OF OBTAINING
CHARGES IN EXCESS OF THAT PERMITTED BY THIS SUBTITLE.

(B)   WHEN LOAN CONTRACT VOID.

EXCEPT FOR AN ACCIDENTAL OR BONA FIDE ERROR OF
COMPUTATION, IF ANY AMOUNT IN EXCESS OF THE CHARGES
PERMITTED BY THIS SUBTITLE IS DIRECTLY OR INDIRECTLY
CONTRACTED FOR, CHARGED, OR RECEIVED, THE LOAN CONTRACT
IS VOID, AND THE LENDER MAY NOT RECEIVE OR RETAIN ANY
PRINCIPAL, INTEREST, CHARGES, OR COMPENSATION WITH
RESPECT TO THE LOAN.

REVISOR'S NOTE: Subsection (a) of this section
presently appears as Art. 11, §196 (b)(1) and
(2), except for the second clause of
§196(b)(2) which is now contained in
§12-303(b). In item (1), the words "directly
or indirectly" are taken from the almost
identical provision presently appearing in the
first sentence of Art. 11, §196(c); and the
word "brokerage" is added to conform to the
similar provisions relating to small loans,
contained in §12-210 of this title.

Subsection (b) of this section presently
appears as the first clause of the second
sentence of Art. 11, §196 (c). The first
sentence of that, section is deleted as
unnecessary in light of the provisions of
subsection (a)(1). The balance of that
section now appears in §12—315. The word
"collect" is deleted as unnecessary in light
of the word "receive." Also, the words "or
retain" are added to conform this section with
Art. 11, §168, as well as present Art. 58A,
§16(d) - now §12-210(b) - the small loan
counterpart to this subsection. This addition
makes no substantive change as regards the
right of the borrower to recoup by judicial
action payments made on a void loan. See,
e.g., Credit Finance Service v. Able. 227 A.2d
396 (1956), decided by the Municipal Court of
Appeals for the District of Columbia under the