WILLIAM DONALD SCHAEFER, Governor                         S.B. 329

(3)      FOR THE PURPOSES OF PARAGRAPH (1) OF THIS SUBSECTION, IF
THERE IS NO WRITTEN ELECTION TO EXTEND CREDIT UNDER THIS SUBTITLE, THE
BURDEN OF PROOF IS ON THE CREDIT GRANTOR TO SHOW THE AGREEMENT, NOTE,
OR OTHER EVIDENCE OF THE EXTENSION OF CREDIT WAS MADE PURSUANT TO THIS
SUBTITLE.

(4)     ANY AGREEMENT, NOTE, OR OTHER EVIDENCE OF AN EXTENSION
OF CREDIT MADE BEFORE OCTOBER 1, 1993 IS NOT SUBJECT TO § 12-1013.2 OF THIS
SUBTITLE.

12-1014.

(a)     Notwithstanding any other provisions of this title, a credit grantor may at its
option elect to make a loan to any borrower either pursuant to this subtitle or as
otherwise permitted by applicable law.

(b)     If any provision of this subtitle is held invalid, such invalidity shall not affect
any other provisions of this subtitle which can be given effect without the invalid
provision.

(c)     Notwithstanding any provisions of this title, a loan under this subtitle is
subject only to the disclosure requirements of this subtitle, and, to the extent applicable,
of the federal [Truth in Lending Act] TRUTH-IN-LENDING ACT and regulations
promulgated thereunder.

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article - Commercial Law

12-901.

(d)     "Consumer borrower" means an individual receiving a loan or other extension
of credit under this subtitle for personal, household, or family purposes or an individual
receiving a commercial loan or other extension of credit for any commercial purpose not
in excess of $75,000, secured by [owner-occupied real property having a dwelling on it
designated principally as a residence with accommodations for not more than 4 families]
RESIDENTIAL REAL PROPERTY.

(K) "COMMERCIAL LOAN" AND "EXTENSION OF CREDIT FOR A COMMERCIAL
PURPOSE" MEAN AN EXTENSION OF CREDIT MADE:

(1)      SOLELY TO ACQUIRE AN INTEREST IN OR TO CARRY ON A BUSINESS
OR COMMERCIAL ENTERPRISE; OR

(2)      TO ANY BUSINESS OR COMMERCIAL ORGANIZATION.

(L) "RESIDENTIAL REAL PROPERTY" MEANS OWNER-OCCUPIED REAL
PROPERTY HAVING A DWELLING ON IT DESIGNATED PRINCIPALLY AS A RESIDENCE
WITH ACCOMMODATIONS FOR NOT MORE THAN FOUR FAMILIES.

12-913.

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