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HARRY HUGHES, Governor 747
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12-1007.
(A) IN CONNECTION WITH A LOAN TO A CONSUMER BORROWER:
(1) THE PURCHASE OF CREDIT LIFE, CREDIT ACCIDENT AND
HEALTH, CREDIT DISABILITY, INVOLUNTARY UNEMPLOYMENT BENEFIT, AND
SIMILAR INSURANCE COVERAGES IS OPTIONAL WITH THE CONSUMER
BORROWER; AND
(2) THE PURCHASE OF PROPERTY INSURANCE, TITLE
INSURANCE, AND CREDIT LOSS INSURANCE FROM AN INSURER OF THE
BORROWER'S CHOICE MAY BE REQUIRED IF THE LOAN IS SECURED.
(B) THE PROVISIONS OF THIS SECTION DO NOT ALTER OR MODIFY
RIGHTS, PRIVILEGES, OR RESTRICTIONS HERETOFORE EXISTING BETWEEN
THE CREDIT GRANTOR AND A BORROWER OTHER THAN A CONSUMER BORROWER.
(C) PREMIUMS FOR ANY INSURANCE COVERAGE PERMITTED BY THIS
SECTION ARE NOT INTEREST WITH RESPECT TO A LOAN.
(D) THE OFFER AND PLACEMENT OF INSURANCE UNDER THIS SECTION
SHALL BE SUBJECT TO THE PROVISIONS OF THE MARYLAND INSURANCE
CODE.
12-1008.
(A) IF THE AGREEMENT GOVERNING A LOAN PERMITS, A BANK
CREDIT GRANTOR MAY:
(1) FOR A NONCONSUMER BORROWER, CHARGE A HIGHER
PERIODIC PERCENTAGE RATE OR RATES OF INTEREST ON THE AMOUNT OF
OUTSTANDING UNPAID PAYMENTS OR PORTIONS OF PAYMENTS UNDER THE
LOAN WHICH ARE IN DEFAULT; AND
(2) FOR ANY BORROWER, IMPOSE A LATE OR DELINQUENCY
CHARGE UPON PAYMENT OR PORTIONS OF PAYMENTS.
(B) IN THE CASE OF A LOAN TO A CONSUMER BORROWER, NO LATE
OR DELINQUENCY CHARGE MAY BE CHARGED UNLESS THE AGREEMENT, NOTE,
OR OTHER EVIDENCE OF THE LOAN PERMITS. NO MORE THAN 1 LATE OR
DELINQUENCY CHARGE MAY BE IMPOSED FOR ANY SINGLE PAYMENT OR
PORTION OF PAYMENT, REGARDLESS OF THE PERIOD DURING WHICH IT
REMAINS IN DEFAULT.
(C) FOR THE PURPOSES OF SUBSECTION (B) OF THIS SECTION, ALL
PAYMENTS BY THE BORROWER SHALL BE APPLIED TO SATISFACTION OF
SCHEDULED PAYMENTS IN THE ORDER IN WHICH THEY BECOME DUE.
12-1009.
(A) A CONSUMER BORROWER MAY PREPAY A LOAN IN FULL AT ANY
TIME.
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