HARRY HUGHES, Governor

1575

BY repealing and reenacting, with amendments,

Article - Commercial Law

Section 12-103(e), 12-401(i), 12-404(c), 12-405(a)(1),
12-407.1(b), 12-901(d), 12-1001(d), and 12-1005(a)
Annotated Code of Maryland
(1983 Replacement Volume and 1984 Supplement)

BY repealing and reenacting, with amendments,

Article - Financial Institutions
Section 12-301(g) and 12-302
Annotated Code of Maryland
(1980 Volume and 1984 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Commercial Law

12-103.

(e) (1) A lender may charge interest at any rate if the
loan is:

(i) A loan made to a corporation; [or]

(ii) A commercial loan in excess of $5,000
$15,000[.] NOT SECURED BY RESIDENTIAL REAL PROPERTY; OR

(III) A COMMERCIAL LOAN IN EXCESS OF $75,000
$50,000 $75,000 SECURED BY RESIDENTIAL REAL PROPERTY.

(2)  Commercial loans to individuals secured by
residential real property shall comply with the provisions of §
12-407.1 of the Commercial Law Article.

(3)  AS USED IN THIS SUBSECTION, RESIDENTIAL REAL
PROPERTY IS OWNER-OCCUPIED PROPERTY HAVING A DWELLING ON IT
DESIGNATED PRINCIPALLY AS A RESIDENCE WITH ACCOMMODATIONS FOR NOT
MORE THAN 4 FAMILIES.

(4) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (1)
OF THIS SUBSECTION, A STATE OR FEDERALLY CHARTERED BANK, TRUST
COMPANY, SAVINGS BANK, OR SAVINGS AND LOAN ASSOCIATION MAY CHARGE
INTEREST AT ANY RATE IF THE LOAN IS:

(I) A LOAN MADE TO A CORPORATION; OR

(II) A COMMERCIAL LOAN IN EXCESS OF $5,000.

12-401.