§ 5-408
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/md/courts-and-judicial-proceedings/5-408·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§5–408.
(1)In this section the following words have the meanings indicated.
(i)“Credit agreement” means a covenant, promise, undertaking, commitment, or other agreement by a financial institution to:
1. Lend money;
2. Forbear from repayment of money, goods, or things in action;
3. Forbear from collecting or exercising any right to collect a debt; or
4. Otherwise extend credit.
(ii)“Credit agreement” includes agreeing to take or to not take certain actions by a financial institution in connection with an existing or prospective credit agreement.
(3)“Financial institution” means:
(i)A bank;
(ii)A trust company;
(iii)A savings bank;
(iv)A savings and loan association; or
(v)An affiliate or subsidiary of a bank, trust company, savings bank, or savings and loan association.
(b)A credit agreement is not enforceable by way of action or defense unless it:
(1)Is in writing;
(2)Expresses consideration;
(3)Sets forth the relevant terms and conditions of the agreement; and
(4)Is signed by the person against whom its enforcement is sought.
(1)This section applies only to commercial transactions.
(2)This section does not apply to:
(i)Credit agreements made primarily for personal, family, or household purposes; or
(ii)Credit extended by means of, or in connection with, a credit or charge card.