|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ch. 615
|
|
2006 LAWS OF MARYLAND
|
|
|
|
|
|
|
|
|
(2005 Replacement Volume)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Commercial Law
12-124.
(a) (1) (i) In this section the following words have the meanings indicated.
[(h) "Property insurance coverage" means property insurance
against losses caused by perils that commonly are covered in insurance policies
described with terms similar to "standard fire" or "standard fire with extended
coverage".
(iii)] (II) "Flood insurance coverage" means flood insurance against
losses caused by flooding that are covered under a policy issued [under the National
Flood Insurance Act] by:
1. The federal government; or
2. An insurer.
(III) "IMPROVEMENTS" MEANS FIXTURES ATTACHED BUILDINGS OR
STRUCTURES ERECTED UPON OR AFFIXED TO REAL PROPERTY THAT ENHANCE THE
VALUE OF THE REAL PROPERTY.
(IV) "PROPERTY INSURANCE COVERAGE" MEANS PROPERTY
INSURANCE AGAINST LOSSES CAUSED BY PERILS THAT COMMONLY ARE COVERED IN
INSURANCE POLICIES DESCRIBED WITH TERMS SIMILAR TO "STANDARD FIRE" OR
"STANDARD FIRE WITH EXTENDED COVERAGE".
(V) 1. "REPLACEMENT COST" MEANS THE AMOUNT NEEDED TO
REPAIR DAMAGE TO OR REBUILD IMPROVEMENTS ON REAL PROPERTY TO RESTORE
THE IMPROVEMENTS TO THEIR PRE-LOSS CONDITION.
2. "REPLACEMENT COST" DOES NOT INCLUDE THE VALUE OF
LAND.
(2) A lender may not require a borrower, as a condition to receiving or
maintaining a loan secured by a first mortgage or first deed of trust, to provide or
purchase property insurance coverage against risks to any improvements on any real
property in an amount exceeding the replacement [value] COST of the improvements
on the real property.
(3) A lender may not require a borrower, as a condition to receiving or
maintaining a loan secured by a first mortgage or first deed of trust, to provide or
purchase flood insurance coverage in an amount exceeding the replacement [value]
COST of the improvements on the real property.
(4) In determining the replacement [value] COST of the improvements
on any real property, the lender may:
- 2866 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
