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LAWS OF MARYLAND

Ch. 630

by ballot, and upon each ballot there shall be printed the
words "For the Constitutional Amendments" and "Against the
Constitutional Amendments," as now provided by law.
Immediately after the election, all returns shall be made to
the Governor of the vote for and against the proposed
amendment, as directed by Article XIV of the Constitution,
and further proceedings had in accordance with Article XIV.

Approved May 20, 1980.

CHAPTER 631

(House Bill 1172)

AN ACT concerning

Commercial Loans - False Statements

FOR the purpose of prohibiting a lender or broker from
requiring that as a condition to receiving a loan the
borrower agrees to make a statement that the loan is a
commercial loan when it is not in order to receive
certain exemptions from the law of usury; and making a
violation subject to the usury provisions providing
certain penalties for violations of this Act.

BY adding to

Article - Commercial Law
Section 12-106.1
Annotated Code of Maryland
(1975 Volume and 1979 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article - Commercial Law

12-106.1.

(A) A PERSON MAY NOT REQUIRE A BORROWER, AS A
CONDITION TO RECEIVING A LOAN, TO MAKE ANY FALSE OR
MISLEADING STATEMENT OR CHARACTERIZATION THAT A LOAN IS A
COMMERCIAL LOAN UNDER §§ 12-101(C), 12-103(E), OR 12-105 OF
THIS SUBTITLE IF THE LOAN IS NOT A COMMERCIAL LOAN.

(B) ANY FALSE OR MISLEADING STATEMENT OR

CHARACTERIZATION PROCURED BY A LENDER OR BROKER IN VIOLATION
OF SUBSECTION (A) OF THIS SECTION IS CONCLUSIVE PROOF OF A
VIOLATION OF THE USURY PROVISIONS OF THIS SUBTITLE.