Ch. 693                                          LAWS OF MARYLAND

EXCEEDING THE REPLACEMENT VALUE OF THE IMPROVEMENTS ON THE REAL
PROPERTY.

(II) THE REPLACEMENT VALUE OF THE IMPROVEMENTS
ON THE REAL PROPERTY SUBJECT TO THIS SUBSECTION SHALL BE
DETERMINED BY THE INSURER SELECTED BY THE BORROWER TO PROVIDE THE
PROPERTY INSURANCE COVERAGE.

(III) IN DETERMINING THE REPLACEMENT VALUE OF
THE IMPROVEMENTS ON ANY REAL PROPERTY, THE LENDER MAY:

1. ACCEPT THE VALUE PLACED ON THE
IMPROVEMENTS BY THE INSURER; OR

2. USE THE VALUE PLACED ON THE
IMPROVEMENTS THAT IS DETERMINED BY THE LENDER'S APPRAISAL OF THE
REAL PROPERTY.

(III) (IV) ANY PROPERTY INSURANCE COVERAGE
REQUIRED BY A LENDER SHALL BEAR A REASONABLE RELATION TO THE
EXISTING RISK OF LOSS.

(IV) (V) A VIOLATION OF THIS PARAGRAPH OR OF
SUBSECTION (F) OF THIS SECTION SHALL ENTITLE THE BORROWER TO:

1.  SEEK AN INJUNCTION TO PROHIBIT THE
LENDER WHO HAS ENGAGED OR IS ENGAGING IN THE VIOLATION FROM
CONTINUING OR ENGAGING IN THE VIOLATION;

2.  REASONABLE ATTORNEY'S FEES; AND

3.  DAMAGES DIRECTLY RESULTING FROM THE
VIOLATION.

(V) (VI) A VIOLATION OF THIS PARAGRAPH OR OF
SUBSECTION (F) OF THIS SECTION DOES NOT AFFECT THE VALIDITY OF
THE MORTGAGE OR DEED OF TRUST SECURING THE SECONDARY MORTGAGE
LOAN.

(2)  The amount of life insurance may not exceed the
total original amount payable under the loan contract.

(3)  The accident and health insurance shall provide:

(i) Benefits not exceeding the then scheduled
unpaid total of payments of the loan;

(ii) A waiting period for the collection of
benefits of at least 14 days; and

(iii) Periodic benefits, the amount of each of
which may not exceed the originally scheduled total of payments
under the loan contract, divided by the number of installments.

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