HARRY HUGHES, Governor

3455

BY repealing and reenacting, with amendments,

Article - Financial Institutions
Section 12-302 and 12-320
Annotated Code of Maryland
(1980 Volume and 1985 Supplement)

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

Article - Financial Institutions

12-302.

(A) 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)  To a person who takes back a deferred purchase
money secondary mortgage in connection with the sale of real
property owned by, and titled in the name of, that person;

(3)  To a person who takes back a deferred purchase
money secondary mortgage in connection with the sale of a new
residential dwelling that the person built;

(4)  To any nonprofit religious or charitable
organization;

(5)  To an employer making a secondary mortgage loan
to an employee; [or]

(6)  To a lender making a secondary mortgage loan to a
borrower with whom the lender is related by blood or marriage; OR

(7)  EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS
SECTION, TO AN INDIVIDUAL MAKING 5 A PERSON WHO DIRECTLY OR
INDIRECTLY THROUGH ANY OTHER PERSON MAKES 3 OR FEWER SECONDARY
MORTGAGE LOANS UNDER THE PROVISIONS OF TITLE 12, SUBTITLE 4 OF
THE COMMERCIAL LAW ARTICLE DURING ANY CALENDAR YEAR; OR

(8) TO A REAL ESTATE BROKER WHO IS LICENSED IN THIS
STATS AND MAKES A SECONDARY MORTGAGE LOAN TO ASSIST A PERSON IN
THE PURCHASE OR SALE OF A RESIDENTIAL PROPERTY THROUGH THE
BROKER.

(B) THE EXEMPTION PROVIDED IN SUBSECTION (A)(7) OF THIS
SECTION DOES NOT APPLY TO ANY PERSON WHO, FOR ACTS OF FRAUD OR
MISAPPROPRIATION OF FUNDS, HAS BEEN DENIED A LICENSE TO ENGAGE IN
A BUSINESS RELATING DIRECTLY OR INDIRECTLY TO REAL ESTATE OR LOAN