# Commercial Law (GCL)

## Title 12. Credit Regulations

### Subtitle 1. Interest and Usury

#### Section 12-114

(a) This section does not apply to a loan subject to Sec. 12-114.1 of this subtitle.

(b)

  (1) Any person who violates the usury provisions of this subtitle shall forfeit to the borrower the greater of:

    (i) Three times the amount of interest and charges collected in excess of the interest and charges authorized by this subtitle; or

    (ii) The sum of $500.

  (2) A claim or plea of usury is not valid if, within 30 days from the date the loan contract was executed, the lender:

    (i) Notifies the borrower and any other party to the loan contract that the loan was usurious; and

    (ii) Agrees to modify it by substituting for the usurious rate of interest a legal rate of interest not exceeding the stated rate of interest.

(c) Any person who violates the disclosure provisions of Sec. 12-106(b) and (c) of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 1 year or both.

(d) Even if a loan document is executed outside of the State, this section is applicable if the loan is made to a resident of Maryland and is secured by property located within the State.

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Md. Code Ann., Com. Law (as displayed at mgaleg.maryland.gov, October 16, 2026)