§ 5–408
Statutes in effect as of October 1, 2026.
Md. Code Ann., Cts. & Jud. Proc. § 5-408 (2026)
Title 5. Limitations, Prohibited Actions, and Immunities
Subtitle 4. Immunities and Prohibited Actions -- Businesses, Associations, and Charities
§ 5–408LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
(i)
“Credit agreement” means a covenant, promise, undertaking, commitment, or other agreement by a financial institution to:
(1)
Lend money;
(2)
Forbear from repayment of money, goods, or things in action;
(3)
Forbear from collecting or exercising any right to collect a debt; or
(4)
Otherwise extend credit.
(ii)
“Credit agreement” includes agreeing to take or to not take certain actions by a financial institution in connection with an existing or prospective credit agreement.
(3)
“Financial institution” means:
(i)
A bank;
(ii)
A trust company;
(iii)
A savings bank;
(iv)
A savings and loan association; or
(v)
An affiliate or subsidiary of a bank, trust company, savings bank, or savings and loan association.
(b)
A credit agreement is not enforceable by way of action or defense unless it:
(1)
Is in writing;
(2)
Expresses consideration;
(3)
Sets forth the relevant terms and conditions of the agreement; and
(4)
Is signed by the person against whom its enforcement is sought.
(c)
(1)
This section applies only to commercial transactions.
(2)
This section does not apply to:
(i)
Credit agreements made primarily for personal, family, or household purposes; or
(ii)
Credit extended by means of, or in connection with, a credit or charge card.