WILLIAM DONALD SCHAEFER, Governor                         Ch. 549

Annotated Code of Maryland

(1990 Replacement Volume and 1993 Supplement)

BY repealing and reenacting, with amendments,
Article - Financial Institutions
Section 6-507 6-501, 6-506, 6-507, and 6-510
Annotated Code of Maryland
(1992 Replacement Volume and 1993 Supplement)

BY adding to

Article—Financial Institutions

Section 6-512

Annotated Code of Maryland

(1992 Replacement Volume and 1993 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Commercial Law

12-115.

(a)     With respect to any loan made at a rate of interest pursuant to Sections
12-103 (a) and (c) or 12-306 of the Commercial Law Article [or Section 6-507 of the
Financial Institutions Article]:

(1)     A lender may repossess goods securing a loan under an agreement if the
borrower is in default in:

(i) The payment of any sum due under the agreement;

(ii) The performance of any other condition which the agreement
lawfully requires him to perform in order to obtain unencumbered title to the goods; or

(iii) The performance of any promise the breach of which is expressly
made a ground for repossessing the goods.

(2)     The lender may repossess goods only by:
(i) Legal process; or

(ii) Self-help, without use of force.

(b)     Nothing in this section authorizes a violation of criminal law.

(c)     (1) At least 10 days before he repossesses any goods, a lender may serve a
written notice on the borrower of his intention to repossess the goods.

(2) The notice shall:

(i) State the default and any period at the end of which the goods will
be repossessed; and

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