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ROBERT L. EHRLICH, JR., Governor Ch. 615
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2. Use the value placed on the improvements [that is
determined] by the [lender's] CREDIT GRANTOR'S appraisal of the [real property]
IMPROVEMENTS.
(3) ANY PROPERTY INSURANCE COVERAGE REQUIRED BY A CREDIT
GRANTOR SHALL BEAR A REASONABLE RELATION TO THE EXISTING RISK OF LOSS.
[(3)](4) A violation of this subsection shall entitle the borrower to:
(i) Seek an injunction to prohibit the credit grantor who has
engaged or is engaging in the violation from continuing or engaging in the violation;
(ii) Reasonable attorney's fees; and
(iii) Damages directly resulting from the violation.
[(4)](5) A violation of this subsection does not affect the validity of the
[first] lien securing the loan.
12-1007.
(f) (1) (I) In this subsection[,] THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.
(II) "IMPROVEMENTS" MEANS FIXTURES ATTACHED BUILDINGS OR
STRUCTURES ERECTED UPON OR AFFIXED TO REAL PROPERTY THAT ENHANCE THE
VALUE OF THE REAL PROPERTY.
(III) ["property] "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".
(IV) 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) (i) A credit grantor may not require a borrower, as a condition to
receiving or maintaining a loan secured by a [first] lien, 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.
(ii) In determining the replacement [value] COST of the
improvements on any REAL property, the [lender] CREDIT GRANTOR may:
1. Accept the value placed on the improvements by the
insurer; or
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