HARRY HUGHES, Governor

1579

(i) Secured by a first lien on residential real
property; or

(ii) Made for a bona fide commercial purpose IN
EXCESS OF $50,000 $75,000.

Article - Financial Institutions

12-301.

(g) (1) "Secondary mortgage loan" means a loan or deferred
purchase price secured in whole or in part by a mortgage,
security agreement, or other lien on real property that is
located in this State, which property:

(i) Is subject to the lien of one or more prior
encumbrances, except a ground rent or other leasehold interest;
and

(ii) Has a dwelling on it that is designed
principally as a residence with accommodations for not more than
four families.

(2) "Secondary mortgage loan" does not include:

(i) A loan to any corporation unless the lender
required the borrower to incorporate as a condition for obtaining
the loan; or

(ii) A commercial loan of more than [$5,000]
$75,000 $50,000 $75,000, as defined in § 12-101(c) of the
Commercial Law Article.

12-302.

The licensing provisions of this subtitle do not apply:

(1)  To any bank, trust company, savings bank, savings
and loan association, insurance company, State or federally
chartered credit union, or other financial institution whose
power to engage in mortgage loan transactions is regulated by any
other law of this State or of the United States;

(2)  [During any calendar year, to any person who
makes fewer than ten secondary mortgage loans during that year;

(3)] To a person who takes back a deferred purchase
money secondary mortgage in connection with the sale of the
person's own residence REAL PROPERTY OWNED BY, AND TITLED IN THE
NAME OF, THAT PERSON;

[(4)] (3) To a person who takes back a deferred
purchase money secondary mortgage in connection with the sale of