WILLIAM DONALD SCHAEFER, Governor                         Ch. 404

[(2)] (II) Savings and loan association; or
[(3)] (III) Federal or State credit union.
12-1018.

(a)     (1) In this subsection, "notice" means the first to occur of the following:

(i) When the credit grantor receives a written notice from the
borrower notifying the credit grantor of an error or violation;

(ii) When the credit grantor receives a written notice from the
Commissioner of Consumer Credit or the appropriate regulatory authority notifying the
credit grantor of an error or violation; or

(iii) When the credit grantor receives service of process in a civil action
for an error or violation instituted by the borrower in a court of competent jurisdiction.

(2)     Except for a bona fide error of computation, if a credit grantor violates
any provision of this subtitle the credit grantor may collect only the principal amount of
the loan and may not collect any interest, costs, FEES, or other charges with respect to the
loan.

(3)     The penalty provided under paragraph (2) of this subsection does not
apply where a credit grantor:

(i) Unintentionally and in good faith fails to comply with § 12-1003, §
12-1004, § 12-1005, § 12-1008, [or] § 12-1011, § 12-1013.2, § 12-1023(E), § 12-1024, §
12-1025, § 12-1026, § 12-1027, OR § 12-1028 of this subtitle; and

(ii) Corrects the error or violation and makes the borrower whole for
all losses, including reasonable attorney's fees and interest, where appropriate, within 10
days after the credit grantor receives notice of the error or violation.

(4)     The burden shall be on the credit grantor to show that the credit
grantor's failure to comply with § 12-1003, § 12-1004, § 12-1005, § 12-1008, [or] §
12-1011, § 12-1013.2, § 12-1023(E), § 12-1024, § 12-1025, § 12-1026, § 12-1027, OR § 12-1028 of
this subtitle was unintentional and in good faith.

(b)     In addition, a credit grantor who knowingly violates any provision of this
subtitle shall forfeit to the borrower 3 times the amount of interest, FEES, and charges
collected in excess of that authorized by this subtitle.

12-1021.

(j) (1) (I) [The] SUBJECT TO SUBSECTION (L) OF THIS SECTION, THE
credit grantor shall sell the property that was repossessed at:

1.        SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, A
private sale [(subject to the provisions of paragraph (2) of this subsection)]; or

2.        [at] A public auction.

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