# Financial Institutions (GFI)

## Title 11. Consumer Credit

### Subtitle 2. Consumer Loans -- Licensing Provisions

#### Section 11-201

(a) In this subtitle the following words have the meanings indicated.

(b)

  (1) "Control person" means a person who has the power, directly or indirectly, to direct the management or policies of a licensee or license applicant, whether through ownership of securities, by contract, or otherwise.

  (2) "Control person" includes a person who:

    (i) Is a general partner, an officer, or a director of a licensee or license applicant, or occupies a similar position or performs a similar function;

    (ii) Directly or indirectly has the right to vote 10% or more of a class of voting securities, or has the power to sell or direct the sale of 10% or more of a class of voting securities of a licensee or license applicant; or

    (iii) In the case of a partnership, a limited partnership, a limited liability partnership, a limited liability company, or any other business entity:

      (1) Has the right to receive on liquidation or dissolution of a licensee or license applicant 10% or more of the capital of the licensee or license applicant; or

      (2) Has contributed 10% or more of the capital of a licensee or license applicant.

(c) "License" means a license issued in any form by the Commissioner under this subtitle to make loans under the Maryland Consumer Loan Law, including as provided for through NMLS.

(d) "Licensed location" means any location listed by the licensee in NMLS in accordance with this subtitle.

(e) "Licensed name" means:

  (1) The licensee's legal name; and

  (2) Any trade name used by the licensee in accordance with Sec. 2-121 of this article.

(f) "Licensee" means a person licensed under this subtitle to make loans under the Maryland Consumer Loan Law.

(g) "Loan" means any loan or advance of money or credit subject to Title 12, Subtitle 3 of the Commercial Law Article, the Maryland Consumer Loan Law - Credit Provisions, regardless of whether the loan or advance of money or credit is or purports to be made under Title 12, Subtitle 3 of the Commercial Law Article.

(h) "Maryland Consumer Loan Law" means this subtitle and Title 12, Subtitle 3 of the Commercial Law Article.

(i) "Person" includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.

(j) "Unique identifier" means a number or another identifier assigned by NMLS.

#### Section 11-202

(a) The Maryland Consumer Loan Law does not change any powers conferred by law on any person who is not required or permitted to be licensed under this subtitle.

(b) The Commissioner may not license any bank, trust company, savings bank, credit union, or savings and loan association.

#### Section 11-203

The Commissioner may adopt rules and regulations to carry out the provisions of this subtitle.

#### Section 11-203.1

(a) Unless a person is licensed by the Commissioner, the person may not:

  (1) Make a loan; or

  (2) In any way use any advantage provided by the Maryland Consumer Loan Law.

(b) Except as otherwise provided in Sec. 11-204 of this subtitle or authorized by the Commissioner by regulation, a licensee may not engage in the business of making loans at a location other than a licensed location.

(c) During the time period established by the Commissioner under subsection (d) of this section, each licensee shall:

  (1) Obtain and maintain a valid unique identifier issued by NMLS when an account is created with NMLS;

  (2) Transfer licensing information to NMLS; and

  (3) Pay to the Commissioner a license extension fee calculated in accordance with subsection (d)(5) of this section.

(d)

  (1) The Commissioner shall establish a time period that is not less than 2 months within which a licensee must transfer licensing information to NMLS.

  (2) The time period that the Commissioner establishes under this subsection shall begin on or after July 1, 2017.

  (3) At least 30 days before the transfer period begins, the Commissioner shall:

    (i) Notify all licensees of the transfer period; and

    (ii) Provide instructions for the transfer of licensing information to NMLS.

  (4) For each licensee that complies with subsection (c) of this section, the term of the licensee's license shall extend to December 31 of the year in which the license otherwise would have expired.

  (5) The license extension fee required under subsection (c)(3) of this section is nonrefundable and, based on the annual license fee, shall be prorated to the number of days between the date the license otherwise would have expired and December 31 of the same year.

(e) Subject to subsection (c) of this section, an applicant for an initial license or a license renewal shall apply for the initial license or license renewal through NMLS:

  (1) On or after July 1, 2017; or

  (2) If the Commissioner has not joined NMLS with respect to persons required to be licensed under this subtitle as of July 1, 2017, on or after the date that the Commissioner joins, as specified by the Commissioner by public notice.

#### Section 11-203.2

(a)

  (1) The requirements under any federal law and Title 4, Subtitles 1 through 5 of the General Provisions Article regarding the privacy or confidentiality of information or material provided to NMLS, and any privilege arising under federal or state law, including the rules of any federal or state court with respect to that information or material, shall continue to apply to that information or material after the information or material has been disclosed to NMLS.

  (2) The information and material may be shared with all state and federal regulatory officials having oversight authority over persons required to be licensed under this subtitle, including the Financial Crimes Enforcement Network and the Office of Foreign Assets Control, and any successor to these agencies, without the loss of privilege or the loss of confidentiality protections provided by federal law or Title 4, Subtitles 1 through 5 of the General Provisions Article.

(b) Information or material that is subject to a privilege or confidentiality under subsection (a) of this section may not be subject to:

  (1) Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or agency of the federal government or a state that has received the information or material; or

  (2) Subpoena, discovery, or admission into evidence, in any private civil litigation or administrative process, unless, with respect to any privilege held by NMLS, the person to whom the information or material pertains waives, in whole or in part, that privilege.

(c) Any provisions of Title 4, Subtitles 1 through 5 of the General Provisions Article relating to the disclosure of any information or material described in subsection (a) of this section that are inconsistent with subsection (a) of this section shall be superseded by the requirements of this section.

(d) This section does not apply to information or material relating to publicly adjudicated disciplinary and enforcement actions against a person required to be licensed under this subtitle that is included in NMLS and designated for access by the public.

#### Section 11-203.3

(a) All revenue received for the licensing and assessment of persons under this subtitle and Subtitle 3 of this title and any other fee or revenue received by the Commissioner under this subtitle shall be:

  (1) Credited to the Non-Depository Special Fund established under Sec. 2-120 of this article; and

  (2) Used in accordance with Sec. 2-120(d) of this article.

(b) Notwithstanding subsection (a) of this section, the Commissioner shall pay all fines and penalties collected by the Commissioner under this subtitle and Subtitle 3 of this title into the General Fund of the State.

(c) Subject to Sec. 2-120(h) of this article, the Commissioner may impose an annual assessment on any licensee under this subtitle.

#### Section 11-204

(a) A person may not:

  (1) Receive any application for a loan or allow any note or contract for a loan to be signed at any place of business that is not a licensed location;

  (2) Conduct any business under the Maryland Consumer Loan Law under a name different from the licensed name; or

  (3) Evade the application of this section by any device, subterfuge, or pretense of any kind.

(b) This section does not prohibit a licensee from accommodating a borrower, at the borrower's request, by making a loan by mail because of the borrower's sickness or hours of employment or for similar reasons.

(c) Notwithstanding subsections (a) and (b) of this section, for a loan that is to be secured by residential real property:

  (1) A licensee may solicit and accept an application for a loan:

    (i) By mail;

    (ii) By telephone or other electronic means; or

    (iii) At any location requested by the prospective borrower;

  (2) Except as provided in item (3) of this subsection, the loan closing shall be conducted at:

    (i) A licensed location;

    (ii) The office of an attorney representing the licensee, the borrower, the title company, or title insurer in connection with the loan; or

    (iii) The office of the title insurer or title agency performing closing services in connection with the loan; and

  (3) A licensee may conduct the loan closing at another location at the written request of the borrower or the borrower's designee to accommodate the borrower because of the borrower's sickness.

#### Section 11-205

To qualify for a license, an applicant shall satisfy the Commissioner that:

(1) The applicant has at least $20,000 in liquid assets available to be used in the business to be covered by the license;

(2) The business will promote the convenience and advantage of the community in which the place of business will be located; and

(3) The applicant or, if the applicant is not an individual, the owners, officers, directors, or members have sufficient experience, character, financial responsibility, and general fitness to:

  (i) Command the confidence of the public; and

  (ii) Warrant the belief that the business will be operated lawfully, honestly, fairly, and efficiently.

#### Section 11-206

(a)

  (1) To apply for a license, an applicant shall:

    (i) Complete, sign, and submit to the Commissioner an application made under oath in the form, and in accordance with the process, that the Commissioner requires; and

    (ii) Provide all the information that the Commissioner requests.

  (2) The application shall include:

    (i) The applicant's legal name and any trade name used by the applicant in accordance with Sec. 2-121 of this article;

    (ii) The applicant's principal executive office address;

    (iii) If the applicant is not an individual, the name and residence address of each control person;

    (iv) The address of each additional location, if any, that:

      (1) The general public may reasonably view as a location that makes loans, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;

      (2) Houses any core operational infrastructure or technology systems;

      (3) Conducts any core management, information security and technology, risk and compliance, or finance functions; or

      (4) Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle; and

    (v) Any other pertinent information that the Commissioner requires for an investigation and findings under Sec. 11-207 of this subtitle.

(b) With the application, the applicant shall pay to the Commissioner:

  (1) An investigation fee of $100; and

  (2) A license fee of $850.

(c)

  (1) With the application, the applicant shall file a surety bond.

  (2) The bond shall run to the Commissioner, as obligee, for the benefit of:

    (i) The State; and

    (ii) Any person who has a cause of action against the applicant under the Maryland Consumer Loan Law.

  (3) The bond shall be:

    (i) In an amount determined by the Commissioner under subsection (d) of this section;

    (ii) Issued by a surety company that:

      (1) Is authorized to do business in the State; and

      (2) Holds a certificate of authority issued by the Maryland Insurance Commissioner; and

    (iii) Conditioned that the licensee shall:

      (1) Comply with the Maryland Consumer Loan Law; and

      (2) Pay to the State or to any person any money that the licensee may owe to the State or to the person under the Maryland Consumer Loan Law.

  (4) The liability of the surety:

    (i) Shall be continuous;

    (ii) May not be aggregated or cumulative, whether or not the bond is renewed, continued, replaced, or modified;

    (iii) May not be determined by adding together the penal sum of the bond, or any part of the penal sum of the bond, in existence at any two or more points in time;

    (iv) Shall be considered to be one continuous obligation, regardless of increases or decreases in the penal sum of the bond;

    (v) May not be affected by:

      (1) The insolvency or bankruptcy of the licensee;

      (2) Any misrepresentation, breach of warranty, failure to pay a premium, or any other act or omission of the licensee or an agent of the licensee; or

      (3) The suspension of the licensee's license;

    (vi) May not require an administrative enforcement action by the Commissioner as a prerequisite to liability; and

    (vii) Shall continue for 3 years after the later of the date on which:

      (1) The bond is canceled; or

      (2) The licensee, for any reason, ceases to be licensed.

  (5)

    (i) A bond may be canceled by the surety or the licensee by giving notice of cancellation to the Commissioner.

    (ii) Notice under subparagraph (i) of this paragraph shall:

      (1) Be in writing; and

      (2) Be sent by certified mail, return receipt requested.

    (iii) A cancellation of a bond under this paragraph is not effective until 90 days after receipt of a notice of cancellation by the Commissioner.

  (6) A claim against the bond may be filed with the surety by:

    (i) A claimant; or

    (ii) The Commissioner for the benefit of a claimant or the State.

  (7) If the amount of claims against a bond exceeds the amount of the bond, the surety:

    (i) Shall pay the amount of the bond to the Commissioner for pro rata distribution to claimants; and

    (ii) Is relieved of liability under the bond.

  (8) If the penal amount of a bond is reduced by payment of a claim or judgment, the licensee shall file a new or additional bond with the Commissioner.

  (9) A penalty imposed against a licensee under Sec. 2-115(b) of this article may be collected and paid from the proceeds of a bond required under this subsection.

(d)

  (1) The amount of the surety bond under subsection (c) of this section shall be in an amount of not less than $50,000 and not more than $200,000, as determined by the Commissioner for each licensee.

  (2) In setting the amount of the surety bond, the Commissioner may consider:

    (i) The nature and volume of the business or proposed business of the licensee or applicant;

    (ii) The financial condition of the licensee or applicant, including:

      (1) The amount, nature, quality, and liquidity of the assets of the licensee or applicant;

      (2) The amount and nature of the liabilities, including contingent liabilities, of the licensee or applicant;

      (3) The history of and prospects for the licensee or applicant to earn and retain income; and

      (4) The potential harm to consumers if the applicant or licensee becomes financially impaired;

    (iii) The quality of the operations of the licensee or applicant;

    (iv) The quality of the management of the licensee or applicant;

    (v) The nature and quality of the person that has control of the licensee or applicant; and

    (vi) Any other factor that the Commissioner considers relevant.

#### Section 11-207

(a) When an applicant for a license files the application and bond and pays the fees required by Sec. 11-206 of this subtitle, the Commissioner shall investigate the facts relevant to the application to determine if the applicant meets the requirements of this subtitle.

(b) Unless the Commissioner and an applicant agree in writing to extend the time, the Commissioner shall approve or deny each application for a license within 60 days after the date on which the complete application is filed, the fees are paid, and the surety bond is filed.

(c) The Commissioner shall issue a license to any applicant who meets the requirements of this subtitle.

(d)

  (1) If an applicant does not meet the requirements of this subtitle, the Commissioner shall:

    (i) Deny the application;

    (ii) Notify the applicant immediately of this fact;

    (iii) Return the bond filed under Sec. 11-206 of this subtitle;

    (iv) Refund the license fee; and

    (v) Keep the investigation fee.

  (2)

    (i) Within 10 days after the Commissioner denies an application, the Commissioner shall send a written notice to the applicant stating the reasons for the denial.

    (ii) The notice shall be sent by United States mail, e-mail, or any means provided through NMLS to the address listed in the application.

#### Section 11-208

(a) Information in NMLS associated with a license approved by the Commissioner under this subtitle shall include the following:

  (1) The licensee's legal name and any trade name used by the licensee in accordance with Sec. 2-121 of this article;

  (2) The address of the licensee's principal executive office; and

  (3) The address of each additional location, if any, where the licensee does business and that:

    (i) The general public may reasonably view as a location that makes loans, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;

    (ii) Houses any core operational infrastructure or technology systems;

    (iii) Conducts any core management, information security and technology, risk and compliance, or finance functions; or

    (iv) Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle.

(b) A licensee shall maintain and update the information in NMLS associated with the licensee's license to reflect accurately at all times the information required by subsection (a) of this section.

(c) The unique identifier of the licensee shall constitute the license number for the license.

(d) A license authorizes the licensee to do business under the license at any licensed location and under any licensed name, or as otherwise authorized by the Commissioner through regulation.

#### Section 11-209

(a) An initial license term shall:

  (1) Begin on the date the license is issued; and

  (2) Expire on December 31 of the year:

    (i) In which the license is issued, if the license is issued before November 1; or

    (ii) Immediately following the year in which the license is issued, if the license is issued on or after November 1.

(b) On or after November 1 of the year in which a license expires, the license may be renewed for an additional 1-year term, if the licensee:

  (1) Otherwise is entitled to be licensed;

  (2) Pays to the Commissioner a renewal fee of $850; and

  (3) Submits to the Commissioner a renewal application in the form, and in accordance with the process, that the Commissioner requires.

(c) The Commissioner may waive the requirements of Sec. 11-205(1) and (2) of this subtitle for the renewal of a license.

(d) To the extent required or permitted by NMLS, the Commissioner may determine that licenses issued under this subtitle shall expire on a staggered basis.

(e) A licensee may not renew a license unless, before the submission of the license renewal application, the licensee has transferred the licensee's licensing information to NMLS in accordance with Sec. 11-203.1(c) of this subtitle.

#### Section 11-209.1

(a) A licensee may surrender a license through NMLS in accordance with the process that the Commissioner requires.

(b) If a license is surrendered voluntarily, or is suspended or revoked, the Commissioner may not refund any part of the license fee regardless of the time remaining in the license term.

(c) The surrender of a license does not affect any civil or criminal liability of the licensee for acts committed before the license was surrendered.

#### Section 11-210

(a) A license is not transferable.

(b)

  (1) Each licensee shall conspicuously post, in 48 point or larger type, at each licensed location the following information:

    (i) The licensee's unique identifier; and

    (ii) A statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee.

  (2) Each licensee shall conspicuously display the following information on the licensee's website, any software application accessible to the public and used to make loans under the Maryland Consumer Loan Law, and profile page within each social media platform the licensee uses:

    (i) The licensee's unique identifier; and

    (ii) A link to the NMLS Consumer Access website.

(c) A licensee is not required to post the information required in subsection (b)(1) of this section at a licensed location if the licensee does not regularly grant access to that licensed location to members of the general public.

#### Section 11-211

(a) A licensee may not add, delete, or modify a location required to be listed in NMLS under Sec. 11-208(a)(2) or (3) of this subtitle unless:

  (1) The licensee provides to the Commissioner, through NMLS and in accordance with any regulations the Commissioner adopts, notice of the addition, deletion, or modification;

  (2) The addition, deletion, or modification of the location is recorded with the information associated with the licensee's license in NMLS; and

  (3) The addition, deletion, or modification of the location otherwise complies with this subtitle.

(b) The licensee may not do business at a location required to be listed in NMLS by Sec. 11-208(a)(2) or (3) of this subtitle until the location is recorded with the information associated with the licensee's license in NMLS.

#### Section 11-213

Each licensee shall keep:

(1) The books and records that the Commissioner considers necessary to determine compliance with the Maryland Consumer Loan Law; and

(2) For at least 2 years after the licensee makes the final entry on any loan in the licensee's business, the records of that entry, including cards used in a card system.

#### Section 11-214

(a) To discover any violations of the Maryland Consumer Loan Law, the Commissioner, at any time and as often as the Commissioner considers appropriate, may investigate the loans made by and the business of:

  (1) Any licensee; or

  (2) Any other person who makes a loan or on whose behalf a loan is made, whether or not that person:

    (i) Acts or claims to act as a principal, agent, or broker; or

    (ii) Acts or claims to act under the Maryland Consumer Loan Law.

(b) For the purposes of this section, the Commissioner:

  (1) Shall be given access to any books, papers, records, safes, or vaults of the person under investigation; and

  (2) May examine under oath any person whose testimony the Commissioner requires.

#### Section 11-215

(a) Subject to the hearing provisions of Sec. 11-217 of this subtitle, the Commissioner may order a licensee or any other person to cease and desist from a course of conduct if the course of conduct results in an evasion or violation of the Maryland Consumer Loan Law or of any rule or regulation adopted under it.

(b)

  (1) Subject to the provisions of paragraph (2) of this subsection, when the Commissioner determines that a licensee or any other person is about to engage in an act or practice constituting an evasion or violation of the Maryland Consumer Loan Law or of any rule or regulation adopted under the Maryland Consumer Loan Law, and that immediate action against the licensee or person is in the public interest, the Commissioner may in the Commissioner's discretion issue, without a prior hearing, a summary order directing the licensee or person to cease and desist from engaging in the act or practice.

  (2) A summary cease and desist order issued under paragraph (1) of this subsection shall give the licensee or person:

    (i) Subject to the hearing provisions of Sec. 11-217 of this subtitle, notice of the opportunity for a hearing to determine whether the summary cease and desist order should be vacated, modified, or entered as final; and

    (ii) Notice that the summary cease and desist order will be entered as final if the licensee or person does not request a hearing within 15 days of receipt of the summary cease and desist order.

#### Section 11-216

(a) Subject to the hearing provisions of Sec. 11-217 of this subtitle, the Commissioner may suspend or revoke the license of any licensee who:

  (1) Violates any provision of the Maryland Consumer Loan Law; or

  (2) Knowingly and repeatedly violates any provision of the Maryland Consumer Debt Collection Act.

(b)

  (1) The Commissioner shall revoke the license of any licensee who is convicted twice of violating Sec. 12-316 of the Commercial Law Article if the second violation occurs after the first conviction.

  (2) The Commissioner may not issue another license to any person whose license is revoked under this subsection.

(c) If the Commissioner suspends or revokes a license, the Commissioner shall file in the Commissioner's office:

  (1) Findings; and

  (2) A statement of all the facts on which the findings are based.

#### Section 11-217

(a) Before the Commissioner takes any action under Sec. 11-215 or Sec. 11-216(a) of this subtitle, the Commissioner shall give the licensee an opportunity for a hearing before the Commissioner.

(b) Notice of the hearing shall be given and the hearing shall be held in accordance with the Administrative Procedure Act.

#### Section 11-218

(a) Any applicant for a license or any licensee who is aggrieved by a decision of the Commissioner to deny an application for or suspend or revoke a license may appeal:

  (1) To the circuit court for the county in which the aggrieved person resides or did business; or

  (2) To the Circuit Court for Baltimore City.

(b) An appeal shall be heard and decided on the record of the proceedings before the Commissioner. However, if the court finds that additional evidence is necessary, the court may permit that evidence to be introduced.

(c) If a decision of the Commissioner is appealed, the court may reverse, affirm, or modify the decision.

(d) The aggrieved applicant or licensee or the Commissioner may appeal the decision of the court to the Appellate Court of Maryland.

#### Section 11-219

(a) A licensee may not sell a loan account to any person who is not licensed under this subtitle.

(b) A loan account that is acquired by a person who is not licensed under this subtitle is not enforceable.

#### Section 11-220

The Commissioner shall report to the appropriate State's Attorney any alleged criminal violation of the Maryland Consumer Loan Law.

#### Section 11-221

This subtitle shall be interpreted and construed to effectuate its general remedial purpose.

#### Section 11-222

Any person who violates any provision of Sec. 11-203.1(a) of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000 or imprisonment not exceeding 3 years or both.

#### Section 11-223

(a) This subtitle may be cited as the Maryland Consumer Loan Law - Licensing Provisions.

(b) This subtitle and the Maryland Consumer Loan Law - Credit Provisions may be cited jointly as the Maryland Consumer Loan Law.

---

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