ROBERT L. EHRLICH, JR., Governor                            Ch. 421

CHAPTER 421
(House Bill 1447)

AN ACT concerning

Real Property Mortgages and Deeds of Trust - Flood Insurance

FOR the purpose of requiring a lender, in evaluating the amount of flood insurance
coverage that a borrower is required to purchase, to take into account a separate
valuation of the improved real property excluding the value of the land;
providing for the application of this Act; and generally relating to flood
insurance in consumer loan transactions providing that a lender may not
require a borrower to provide or purchase flood insurance in an amount
exceeding the value of improvements on real property under certain
circumstances; defining a certain term; making stylistic changes; and generally
relating to flood insurance, mortgages, and deeds of trust.

BY adding to

Article—Real Property

Section 10-701

Annotated Code of Maryland

(2003 Replacement Volume and 2003 Supplement)

BY repealing and reenacting, with amendments,
Article - Commercial Law
Section 12-124
Annotated Code of Maryland
(2000 Replacement Volume and 2003 Supplement)

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

Article—Real Property

10-704.

(A) THIS SECTION APPLIES TO A LOAN TRANSACTION IN WHICH THE LOAN IS
SECURED BY A MORTGAGE OR DEED OF TRUST ON REAL PROPERTY.

(B) IN EVALUATING THE AMOUNT OF FLOOD INSURANCE COVERAGE THAT A
BORROWER IS REQUIRED TO PURCHASE, A LENDER SHALL TAKE INTO ACCOUNT A
SEPARATE VALUATION OF THE IMPROVED REAL PROPERTY EXCLUDING THE VALUE
OF THE LAND.

Article - Commercial Law                       

12-124.

(a) (1) (I) In this [section,] SECTION THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

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