Ch. 673

LAWS OF MARYLAND

the policy, and the effective date and the expiration date of
such policy.

Article - Commercial Law

12-123.

(A)  IN THIS SECTION, "BINDER" MEANS A BINDER OR OTHER
TEMPORARY CONTRACT OF INSURANCE AS PROVIDED UNDER ARTICLE 48A, §
379 OF THE CODE.

(B)  A LENDER SHALL COMPLY WITH THIS SECTION IF THE LENDER:

(1)  MAKES ANY LOAN SECURED BY A FIRST MORTGAGE OR A
FIRST DEED OF TRUST ON ANY INTEREST IN OWNER-OCCUPIED
RESIDENTIAL REAL PROPERTY; AND

(2)  AS A CONDITION OF MAKING THE LOAN, REQUIRES THE
BORROWER TO PURCHASE PROPERTY INSURANCE, TITLE INSURANCE, OR
CREDIT LOSS INSURANCE.

(C)  A LENDER WHO MAKES A LOAN SUBJECT TO THIS SECTION SHALL
ACCEPT AS EVIDENCE OF INSURANCE A WRITTEN BINDER ISSUED BY ANY
AUTHORIZED INSURER OR ITS AGENT IF THE BINDER INCLUDES OR IS
ACCOMPANIED BY:

(1)  THE NAME AND ADDRESS OF THE INSURED BORROWER;

(2)  THE NAME AND ADDRESS OF THE LENDER;

(3)  A DESCRIPTION OF THE INSURED RESIDENTIAL REAL
PROPERTY;

(4)  A PROVISION THAT THE BINDER MAY NOT BE CANCELED
WITHIN THE TERM OF THE BINDER UNLESS THE LENDER AND THE INSURED
BORROWER RECEIVE WRITTEN NOTICE OF THE CANCELLATION AT LEAST 10
DAYS PRIOR TO THE CANCELLATION; AND

(5)  EXCEPT IN THE CASE OF THE RENEWAL OF A POLICY
SUBSEQUENT TO THE CLOSING OF THE LOAN, A PAID RECEIPT FOR THE
FULL AMOUNT OF THE APPLICABLE PREMIUM; AND

(6)  THE AMOUNT OF COVERAGE.

(D)  THIS SECTION DOES NOT PROHIBIT A LENDER FROM REFUSING
TO HONOR A BINDER IN CASES WHERE:

(1)  THE LENDER RECEIVES NOTICE OF THE CANCELLATION OF
THE BINDER BY THE INSURER; OR

(2)  AT THE EXPIRATION OF 45 30 DAYS OF THE DATE THE
BINDER WAS GIVEN, THE INSURER HAS FAILED TO ISSUE THE POLICY OF
INSURANCE.

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