# Courts and Judicial Proceedings (GCJ)

## Title 5. Limitations, Prohibited Actions, and Immunities

### Subtitle 4. Immunities and Prohibited Actions -- Businesses, Associations, and Charities

#### Section 5-408

(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.

---

Md. Code Ann., Cts. & Jud. Proc. (as displayed at mgaleg.maryland.gov, October 16, 2026)