WILLIAM DONALD SCHAEFER, Governor

Ch. 404

(B) (1) AS A CONDITION TO RECEIVING AN EXTENSION OF CREDIT, A
CREDIT GRANTOR MAY NOT REQUIRE A BORROWER TO MAKE ANY FALSE OR
MISLEADING STATEMENT OR CHARACTERIZATION THAT THE EXTENSION OF
CREDIT IS A COMMERCIAL LOAN OR FOR A COMMERCIAL PURPOSE IF THE
EXTENSION OF CREDIT IS NOT A COMMERCIAL LOAN OR FOR A COMMERCIAL
PURPOSE.

(2) THIS SUBSECTION MAY NOT AFFECT THE REBUTTABLE

PRESUMPTION THAT THE EXTENSION OF CREDIT WAS A COMMERCIAL LOAN OR
MADE FOR COMMERCIAL PURPOSES.

(C) (B) (1) PARAGRAPH (2) OF THIS SUBSECTION APPLIES ONLY TO A
LOAN OR AN EXTENSION OF CREDIT PRIMARILY FOR PERSONAL, HOUSEHOLD, OR
FAMILY PURPOSES.

(2)      AN AGREEMENT GOVERNING A REVOLVING CREDIT PLAN OR ANY
INSTRUMENT WHICH EVIDENCES OR SECURES AN EXTENSION OF CREDIT UNDER
THE PLAN MAY NOT CONTAIN:

(I)       AN ASSIGNMENT OR ORDER FOR THE PAYMENT OF WAGES,
WHETHER EARNED OR TO BE EARNED, OR OF ANY CHOSE IN ACTION COVERING
LOST WAGES;

(II)     AN ACCELERATION CLAUSE UNDER WHICH ANY PART OR ALL
OF THE UNPAID BALANCE OF ANY EXTENSION OF CREDIT NOT YET MATURED MAY
BE DECLARED DUE AND PAYABLE BECAUSE THE CREDIT GRANTOR DEEMS ITSELF
INSECURE;

(III)    A CONFESSION OF JUDGMENT OR ANY POWER OF ATTORNEY
AUTHORIZING THE CREDIT GRANTOR TO APPEAR IN COURT TO CONFESS
JUDGMENT AGAINST THE BORROWER OR A SURETY OR GUARANTOR OF THE
BORROWER, OR ANY OTHER WAIVER OF THE RIGHT TO NOTICE AND AN
OPPORTUNITY TO BE HEARD IN THE EVENT OF SUIT OR PROCESS THEREON; OR

(IV) EXCEPT AS EXPRESSLY ALLOWED BY LAW, A PROVISION BY
WHICH THE BORROWER WAIVES ANY RIGHT ACCRUING TO THE BORROWER UNDER
THIS SUBTITLE; OR

(V) (IV) A PROVISION BY WHICH A PERSON ACTING ON BEHALF
OF A HOLDER OF THE AGREEMENT IS TREATED AS AN AGENT OF THE BORROWER
IN CONNECTION WITH ITS FORMATION OR EXECUTION.

(3) EXCEPT AS EXPRESSLY ALLOWED BY LAW, AN AGREEMENT
GOVERNING A REVOLVING CREDIT PLAN OR ANY INSTRUMENT WHICH EVIDENCES
OR SECURES AN EXTENSION OF CREDIT UNDER THE PLAN MAY NOT CONTAIN A
PROVISION BY WHICH THE BORROWER WAIVES ANY RIGHT ACCRUING TO THE
BORROWER UNDER THIS SUBTITLE.

(2)      (4) (I) ANY CLAUSE OR PROVISION IN AN AGREEMENT
GOVERNING THE PLAN OR IN ANY INSTRUMENT WHICH EVIDENCES OR SECURES AN
EXTENSION OF CREDIT UNDER A PLAN THAT IS IN VIOLATION OF THIS SUBSECTION
SHALL BE UNENFORCEABLE.

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