HARRY HUGHES, Governor

2239

FOR the purpose of altering clarifying altering the remedies
of a consumer when a lender violates certain loan
provisions; allowing a borrower to recover certain

amounts from a lender in certain circumstances;

imposing a civil penalty that a borrower may recover
from certain lenders; allowing a good faith defense to
certain violations; restricting actions that may be
brought under these provisions; imposing a statute of
limitations on actions brought under these provisions;

and distinguishing between intentional and

unintentional violations.

BY repealing and reenacting, with amendments,

Article - Commercial Law

Section 12-313

Annotated Code of Maryland

(1975 Volume and 1980 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be repealed, amended, or enacted to read as follows: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

12-313.

(a)   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;

(2)  Divide into separate parts any contract made
for the purpose or with the effect of obtaining charges in
excess of those permitted by this subtitle; or

(3)  Enforce a contract of surety or guarantee
unless the loan contract with the borrower is executed also
by the surety or guarantor.

(b) [(1) Except as provided in paragraph (2) of this
subsection, if any amount in excess of the charges
permitted by this subtitle is directly or indirectly
contracted for, charged, or received by a licensee or a
person who is exempt from licensing, the loan contract is

void, and the lender may not receive or retain any

principal, interest, charges, or compensation with respect
to the loan. AND (1) IF THE EXCESS CHARGE WERE MADE WITH
MALICIOUS INTENT WILLFULLY FOR THE BENEFIT OF THE LENDER,
THEN THE LENDER MAY NOT RECEIVE OR RETAIN ANY INTEREST OR
COMPENSATION WITH RESPECT TO THE LOAN; OR (2) IF THE EXCESS
CHARGE WERE NOT MADE WITH MALICIOUS INTENT WILLFULLY FOR THE
BENEFIT OF THE LENDER, AND IF THE LENDER DOES NOT CORRECT
THE ERROR BEFORE THE BORROWER MAKES THE NEXT PAYMENT ON THE