§ 12–114.1
Statutes in effect as of October 1, 2026.
Md. Code Ann., Com. Law § 12-114.1 (2026)
Title 12. Credit Regulations
Subtitle 1. Interest and Usury
§ 12–114.1LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
(i)
“Covered loan” means a loan subject to § 12–103(a)(3) or (c) of this subtitle, made for personal, family, or household purposes, regardless of whether the loan is or purports to be made under this subtitle.
(ii)
“Covered loan” does not include:
(1)
A loan or an advance of money or credit subject to Subtitle 3 of this title, unless a written election is made under § 12–101.1 of this subtitle;
(2)
A plan or loan for which a written election has been made under Subtitle 3, Subtitle 4, Subtitle 9, or Subtitle 10 of this title; or
(3)
An installment sale agreement as defined in § 12–601 of this title.
(3)
“Unlicensed person” means a person who is not:
(i)
Licensed in the State to make a covered loan; and
(ii)
Exempt from licensing in the State.
(b)
This section applies to a covered loan made to any person.
(c)
(1)
An unlicensed person may not make a covered loan.
(2)
A person may not make a covered loan if the person directly or indirectly contracts for, charges, or receives a rate of interest, charge, discount, or other consideration that is greater than the amount authorized under State law.
(3)
A person may not make a covered loan that violates the federal Military Lending Act.
(d)
(1)
A covered loan made by an unlicensed person is void and unenforceable.
(2)
(i)
Except as provided in subparagraph (ii) of this paragraph, a covered loan is void and unenforceable if a person contracts for a covered loan that has a rate of interest, charge, discount, or other consideration greater than the amount authorized under State law.
(ii)
A covered loan is not void and unenforceable if:
(1)
A clerical error or mistake resulted in the rate of interest, charge, discount, or other consideration being greater than the amount authorized under State law; and
(2)
A person corrects the error or mistake before the first payment is due under the loan.
(3)
A covered loan that violates the federal Military Lending Act is void and unenforceable.
(4)
With respect to a loan that is void and unenforceable under this section, a person may not:
(i)
Collect or attempt to collect, directly or indirectly, any amount from the borrower;
(ii)
Enforce or attempt to enforce the contract against any property securing the loan; or
(iii)
Sell, assign, or otherwise transfer the loan to another person.