Ch. 476

LAWS OF MARYLAND

12-308.

(F) A LENDER MAKING OR OFFERING TO MAKE A LOAN SECURED BY
RESIDENTIAL REAL PROPERTY SHALL COMPLY WITH § 12-125 OF THIS
TITLE, AS APPLICABLE.

12-401.

(b)  Lender means:

(1)  A licensee; or

(2)  A person who makes a secondary mortgage loan but
is exempt expressly from the licensing requirements of the
Maryland [Secondary] Mortgage [Loan] LENDER Law [— Licensing
Provisions].

(c)   "Licensee" means a person who is licensed under the
Maryland [Secondary] Mortgage [Loan] LENDER Law [— Licensing
Provisions].

(i) (1) "Secondary mortgage loan" means a loan or deferred
purchase price secured in whole or in part by a mortgage, deed of
trust, security agreement, or other lien on real property located
in the 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 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 $75,000, as
defined in § 12-101(c) of this article.

(3)   If a commercial loan of $75,000 or less is made
in the name of an individual, secured by owner-occupied
residential real property and not to a business or commercial
organization, the MORTGAGE lender [or broker], as defined by the
provisions of [§ 12-501] § 11-501 of the Financial Institutions
Article, shall document independent evidence that the borrower is
seeking funds for a legitimate commercial enterprise before the
lender [or broker] grants any loan for that purpose. An
affidavit is not by itself evidence of a commercial loan.
However, if the borrower is seeking funds to start a business and

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