WILLIAM DONALD SCHAEFER, Governor                   Ch. 693

(2) The purchase of property insurance, title
insurance, and credit loss insurance from an insurer of the
borrower's choice may be required if the loan is secured.

(b)  The provisions of this section do not alter or modify
rights, privileges, or restrictions heretofore existing between
the credit grantor and a borrower other than a consumer borrower.

(c)  Premiums for any insurance coverage permitted by this
section are not interest with respect to a loan.

(d)  The offer and placement of insurance under this section
shall be subject to the provisions of the Maryland Insurance
Code.

(E) (1) IN THIS SUBSECTION, "PROPERTY INSURANCE COVERAGE"
MEANS PROPERTY INSURANCE AGAINST LOSSES CAUSED BY PERILS THAT
COMMONLY ARE COVERED IN INSURANCE POLICIES DESCRIBED WITH TERMS
SIMILAR TO "STANDARD FIRE" OR "STANDARD FIRE WITH EXTENDED
COVERAGE".

(2) (I) A CREDIT GRANTOR MAY NOT REQUIRE A BORROWER,
UNDER AS A CONDITION TO RECEIVING OR MAINTAINING A LOAN SECURED
BY A FIRST LIEN, TO PROVIDE OR PURCHASE PROPERTY INSURANCE
COVERAGE AGAINST RISKS TO ANY IMPROVEMENTS ON ANY REAL PROPERTY
IN AN AMOUNT 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. IN DETERMINING THE REPLACEMENT VALUE
OF THE IMPROVEMENTS ON ANY 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.

(2) (3) A VIOLATION OF THIS SUBSECTION SHALL ENTITLE
THE BORROWER TO:

(I)  SEEK AN INJUNCTION TO PROHIBIT THE CREDIT
GRANTOR WHO HAS ENGAGED OR IS ENGAGING IN THE VIOLATION FROM
CONTINUING OR ENGAGING IN THE VIOLATION;

(II)  REASONABLE ATTORNEY'S FEES; AND

(III)  DAMAGES DIRECTLY RESULTING FROM THE
VIOLATION.

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