# Commercial Law (GCL)

## Title 12. Credit Regulations

### Subtitle 4. Secondary Mortgage Loans -- Credit Provisions

#### Section 12-402.1

(a)

  (1) On or after January 1, 2019, a lender may, at the lender's option, elect to make a loan to any borrower either under this subtitle or as otherwise authorized by applicable law.

  (2) In order to make a loan under this subtitle, a lender shall make a written election in the agreement, note, or other evidence of the loan specifying that this subtitle will govern the loan.

(b)

  (1) If a lender elects to make a loan under this subtitle in accordance with this section, Subtitles 1, 3, 9, and 10 of this title do not apply to the loan.

  (2) If a lender who makes or contracts to make a loan does not make a written election under this subtitle or Subtitle 1, Subtitle 3, Subtitle 9, or Subtitle 10 of this title:

    (i) Subtitle 1 of this title will apply to the loan if the loan is:

      (1) For an amount over $25,000; or

      (2)

        (A) For an amount of $25,000 or less; and

      (B) Not subject to Subtitle 3 of this title; or

    (ii) Subtitle 3 of this title will apply to the loan if the loan is:

      (1) For an amount of $25,000 or less; and

      (2) Subject to Subtitle 3 of this title.

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