§ 12-114
206 words·~1 min read·
/md/commercial-law/12-114A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§12–114.
(a)This section does not apply to a loan subject to § 12–114.1 of this subtitle.
(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 § 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.