WILLIAM DONALD SCHAEFER, Governor Ch. 725
12-314.

(a)  A person may not lend $6,000 or less if the person
directly or indirectly contracts for, charges, or receives a
greater rate of interest, charge, discount, or other
consideration than that authorized by the laws of this State.

(b)  (1) A loan made in the amount of $6,000 or less,
whether or not the loan is or purports to be made under this
subtitle, is unenforceable if a rate of interest, charge,
discount, or other consideration greater than that authorized by
the laws of this State is contracted for by any lender PERSON
unless?

(i) The lender is a licensee or is exempt from
licensing; [and] OR

(ii) The THE excess rate contracted for is the
result of a clerical error or mistake and the lender PERSON
corrects the error or mistake before any payment is received
under the loan.

(2)  The lender PERSON who is neither a licensee nor
exempt from licensing may not receive or retain any principal,
interest, or other compensation with respect to any loan that is
unenforceable under this subsection.

(3)  THIS SUBSECTION DOES NOT APPLY TO A PERSON WHO IS
A LICENSEE OR WHO IS EXEMPT FROM LICENSING UNDER THIS SUBTITLE.

(c)  This section does not apply to a loan transaction
validly made in another state in compliance with a similar loan
law of that state. However, a lender may not collect an amount
that is more than the total amount that would be permitted if
this subtitle were applicable. This section applies to all loans
made by a lender domiciled in another state to a borrower who is
a resident of this State if the application for the loan
originated in this State.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1989.

Approved May 25, 1989.

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