728                                               LAWS OF MARYLAND                                       Ch. 33

also amended this section, without substantive
change, to reflect the provisions of present Art.
58A, § 15A, which have been incorporated into §
12-314 of this subtitle.

As to subsection (b)(2) of this section and the
phrase "clerical error or mistake", see
Supplemental Revisor's Note to § 12—314 of this
subtitle.

12-314.

(a)      Prohibited.

A person may not lend $6,000 or less if [he] THE PERSON
directly or indirectly contracts for, charges, or receives a
greater rate of interest, charge, discount, or other
consideration than that authorized by the laws of [the] THIS
State.

(b)   Loans unenforceable; exception.

{1) [Except as provided in paragraph (2) of this
subsection, a] A loan made in the amount of $6,000 or less,
whether or not the loan is or purports to be made under this
subtitle, is unenforceable if a rate of interest, charge,
discount, or other consideration greater than that
authorized by the laws of this State is contracted for by
any [person.] LENDER UNLESS:

(i) THE LENDER IS A LICENSEE OR IS EXEMPT
FROM LICENSING; AND

(ii) [(2)] The [loan is enforceable if
the] excess rate contracted for is the result of a clerical
error or mistake and the [person] LENDER corrects the error
or mistake before any payment is received under the loan.

(2) THE LENDER WHO IS NEITHER A LICENSEE NOR
EXEMPT FROM LICENSING MAY NOT RECEIVE OR RETAIN ANY
PRINCIPAL, INTEREST, OR OTHER COMPENSATION WITH RESPECT TO
ANY LOAN THAT IS UNENFORCEABLE UNDER THIS SUBSECTION.

(c)       Transactions made in another state.

This section does not apply to a loan transaction
validly made in another state in compliance with A similar
loan [legislation enacted by] LAW OF that state. However, a
lender may not collect an amount [exceeding] THAT IS MORE
THAN the total amount that would be permitted if this
subtitle were applicable. This section [does apply] APPLIES
to all loans made by a lender domiciled in another state to
a borrower who is a [Maryland] resident OF THIS STATE [and]
IF the application for the loan originated in [Maryland]
THIS STATE.

SUPPLEMENTAL REVISOR'S NOTE: Ch. ___              , Acts of 1980,