Ch. 404

1993 LAWS OF MARYLAND

(1)       IS LIMITED TO LEGAL SERVICES ATTRIBUTABLE TO PROCESSING
AND CLOSING THE LOAN AND NOT TO UNRELATED SERVICES PERFORMED BY THE
ATTORNEY FOR THE CREDIT GRANTOR;

(2)      IF IN EXCESS OF $100, IS SUPPORTED BY A STATEMENT PROVIDED TO
THE BORROWER AT OR PRIOR TO SETTLEMENT THAT:

(I)       DESCRIBES THE SERVICES PERFORMED;

(II)     SETS FORTH THE TIME SPENT BY THE ATTORNEY AND THE
HOURLY RATE OR OTHER BASIS FOR DETERMINING THE FEE;

(III)    STATES THAT THE LEGAL SERVICES ARE BEING PERFORMED
ON BEHALF OF THE CREDIT GRANTOR AND NOT ON BEHALF OF THE CONSUMER
BORROWER; AND

(IV)    STATES THAT THE SERVICES ARE BEING PAID FOR BY THE
CONSUMER BORROWER; AND

(3)       IS REASONABLE ON THE BASIS OF THE LEGAL SERVICES
PERFORMED; AND                                                

(4)       IS SEPARATELY ITEMIZED ON THE LOAN SETTLEMENT SHEET AND
IDENTIFIED AS A FEE TO THE CREDIT GRANTOR'S ATTORNEY.

(C) (1) A CREDIT GRANTOR MAY NOT REQUIRE AS A CONDITION OF
SETTLEMENT THAT A CONSUMER BORROWER EMPLOY A PARTICULAR ATTORNEY
OR TITLE INSURANCE COMPANY TO PERFORM A TITLE SEARCH, EXAMINATION OF
TITLE, OR CLOSING IF:

(I)       THE CONSUMER BORROWER NOTIFIES THE CREDIT GRANTOR,
WITHIN 7 DAYS AFTER APPLICATION FOR THE LOAN, OF THE NAME AND BUSINESS
ADDRESS OF THE BORROWER'S CHOICE OF ATTORNEY OR TITLE INSURANCE
COMPANY TO PERFORM THE TITLE SEARCH, EXAMINATION OF TITLE, OR CLOSING;

AND

(II)     THE CREDIT GRANTOR DOES NOT REJECT THE CONSUMER
BORROWER'S CHOICE OF ATTORNEY OR TITLE INSURANCE COMPANY FOR GOOD
CAUSE WITHIN 7 DAYS AFTER THE RECEIPT OF THE NOTICE UNDER ITEM (I) OF THIS
PARAGRAPH.                                                                        

(2) SUBJECT TO THE REQUIREMENTS OF SUBSECTION (B) OF THIS
SECTION, THIS SUBSECTION MAY NOT BE CONSTRUED TO PROHIBIT A CREDIT
GRANTOR FROM REQUIRING A CONSUMER BORROWER TO PAY FOR:

(I)       PREPARATION OF LOAN CLOSING DOCUMENTS;

(II)     TITLE INSURANCE;

(III)    REVIEW OF DOCUMENTS PREPARED BY THE BORROWER'S
ATTORNEY; OR                                                                 

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