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PARRIS N. GLENDENING, Governor
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Ch. 532
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SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Commercial Law
12-124.1.
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) "COVERED LOAN" MEANS A MORTGAGE LOAN MADE UNDER THIS
SUBTITLE THAT MEETS THE CRITERIA DESCRIBED FOR A LOAN SUBJECT TO THE
FEDERAL HOME OWNERSHIP EQUITY PROTECTION ACT SET FORTH IN 15 U.S.C. §
1602(AA), AS MODIFIED FROM TIME TO TIME BY REGULATION Z, 12 C.F.R. PART 226,
EXCEPT THAT THE COMPARISON PERCENTAGES FOR THE MORTGAGE LOAN SHALL
BE ONE PERCENTAGE POINT LESS THAN THOSE SPECIFIED IN 15 U.S.C. § 1602(AA), AS
MODIFIED FROM TIME TO TIME BY REGULATION Z. 12 C.F.R. PART 226.
(3) "CREDIT HEALTH INSURANCE" HAS THE MEANING STATED IN
§ 13-101 OF THE INSURANCE ARTICLE.
(4) "CREDIT INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE" HAS
THE MEANING STATED IN § 13-301 OF THE INSURANCE ARTICLE.
(5) (I) "CREDIT LIFE INSURANCE" MEANS INSURANCE ON THE LIFE OF
A BORROWER THAT PROVIDES INDEMNITY FOR REPAYMENT OF A SPECIFIC LOAN OR
CREDIT TRANSACTION ON THE DEATH OF THE BORROWER
(II) "CREDIT LIFE INSURANCE'' DOES NOT INCLUDE LIFE
INSURANCE PAYABLE TO A BENEFICIARY DESIGNATED BY THE BORROWER OTHER
THAN THE OBLIGEE OF A SPECIFIC LOAN OR CREDIT TRANSACTION.
(6) "HOME BUYER EDUCATION OR HOUSING COUNSELING" MEANS
INSTRUCTION ON PREPARING FOR HOME OWNERSHIP, SHOPPING FOR A HOME,
OBTAINING A MORTGAGE, LOAN CLOSING, AND LIFE AS A HOMEOWNER
(7) "MORTGAGE LOAN" HAS THE MEANING STATED IN § 11-501 OF THE
FINANCIAL INSTITUTIONS ARTICLE.
(8) "PREMIUM" HAS THE MEANING STATED IN § 1-101 OF THE
INSURANCE ARTICLE.
(9) "SINGLE PREMIUM COVERAGE" MEANS INSURANCE FOR WHICH THE
TOTAL PREMIUM IS PAYABLE IN ONE LUMP SUM AT OR BEFORE THE TIME COVERAGE
COMMENCES.
(B) (1) EXCEPT AS PROVIDED IN THIS SUBSECTION. A LENDER MAKING A
COVERED LOAN MAY NOT FINANCE AS A PART OF THE COVERED LOAN TRANSACTION
SINGLE PREMIUM COVERAGE FOR:
(I) CREDIT HEALTH INSURANCE;
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- 4003 -
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