MARVIN MANDEL, Governor                                 439

12-402. LICENSE REQUIRED UNLESS EXEMPT.

(A)   LICENSE REQUIRED.

A PERSON MAY MAKE LOANS UNDER THIS SUBTITLE IN THE
REGULAR COURSE OF BUSINESS ONLY IF HE IS LICENSED UNDER
OR EXEMPT FROM THE LICENSING REQUIREMENTS OF THE MARYLAND
SECONDARY MORTGAGE LOAN LAW - LICENSING PROVISIONS.

(B)   EXCEPTION.

THE PROVISIONS OF THIS SUBTITLE DO NOT APPLY TO A
LOAN MADE BY ANY SAVINGS AND LOAN [[CORPORATION]]
ASSOCIATION IF IT HOLDS THE FIRST MORTGAGE OR FIRST DEED
OF TRUST ON THE PROPERTY SECURING THE LOAN.

REVISOR'S NOTE: Subsection (a) of this section is
new language added to note the general
requirement of licensure for making loans
under this subtitle. The licensing provisions
are retained in the cited Maryland Secondary
Mortgage Loan Law — Licensing Provisions, Art.
66, §§ 40 through 71.

Subsection (b) of this section is new language
derived without substantive change from Art.
66, §71, which is retained in Art. 66 because
of its applicability to the licensing
provisions as well as the credit provisions.
Reference to a "building...and loan
association" is deleted as unnecessary in
light of the usage of the more modern term
"savings and loan association"; in this
regard, see Title 6, Subtitle 2 of the
Corporations and Associations Article.

With respect to the division of the present
Art. 66 secondary mortgage loan provisions,
see general revisor's note to this subtitle.

12-403. FALSE ADVERTISING.

(A)   FALSE ADVERTISING PROHIBITED.

A PERSON MAY NOT ADVERTISE DIRECTLY OR INDIRECTLY IN
THE STATE ANY FALSE OR MISLEADING STATEMENT REGARDING
SECONDARY MORTGAGE LOANS OR THEIR AVAILABILITY.

(B)   EXCEPTION.

THIS SECTION DOES NOT APPLY TO THE OWNER, PUBLISHER,
OPERATOR, OR EMPLOYEE OF ANY PUBLICATION OR RADIO OF
TELEVISION STATION WHICH DISSEMINATES THE STATEMENT
WITHOUT KNOWLEDGE OF ITS FALSE OR MISLEADING CHARACTER.