|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ch. 693
|
|
|
|
|
2826
|
|
|
|
|
|
LAWS OF MARYLAND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LENDER, OR AGENT OR BROKER WHO IS AN OFFICER, DIRECTOR,
AGENT, EMPLOYEE, OR AFFILIATE OF A LICENSEE, ON CREDIT
LIFE AND HEALTH INSURANCE IN CONNECTION WITH ANY PORTION
OF AN OUTSTANDING LOAN OR LOANS EXCEEDING $1,200 MADE BY
THE LENDER TO ANY PERSON. THE INSURANCE COMMISSIONER
SHALL ANNUALLY REVIEW THE PREMIUM RATES CHARGED FOR
CREDIT LIFE AND HEALTH INSURANCE SOLD IN CONNECTION WITH
LOANS MADE UNDER THIS SUBTITLE, AND SHALL APPROPRIATELY
REDUCE SUCH PREMIUM RATES TO REFLECT THE SAVINGS TO
INSURERS BY REASON OF NON-PAYMENT OF COMMISSIONS,
DIVIDENDS, RETROSPECTIVE RATING CREDITS OR OTHER
CONSIDERATIONS FOR CREDIT LIFE AND HEALTH INSURANCE
COVERING LOANS OR PORTIONS OF LOANS IN EXCESS OF THE
$1,200 LIMITATION HEREIN.
12-311.
(a) 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) ASSIGNMENT OR ORDER FOR PAYMENT OF WAGES;
(3) [(2)] Instrument in which blanks are left to
be filled after execution; or
(4) [(3)] Note, promise to pay, or security
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] AND rate of interest,
charges, and fees.
(b) (1) A lender may not take any security interest
in:
(i) [(1)] Real property for any loan under $2,000 in
value or amount; or
(ii) [(2)] Personal property for any loan under $700
in value or amount.
(2) ANY LIEN TAKEN IN VIOLATION OF THIS SUBSECTION
IS VOID.
(3) THIS SUBSECTION DOES NOT APPLY TO OR AFFECT A
LIEN ON AN INTEREST IN REAL PROPERTY WHICH RESULTS FROM A
JUDGMENT OBTAINED BY THE LENDER BASED ON A LOAN OTHERWISE
SECURED OR UNSECURED.
12-312.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
