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§ 5-408. Credit agreements

West's Annotated Code of MarylandCourts and Judicial Proceedings

West's Annotated Code of Maryland
Courts and Judicial Proceedings
Title 5. Limitations, Prohibited Actions, and Immunities (Refs & Annos)
Subtitle 4. Immunities and Prohibited Actions--Businesses, Associations, and Charities (Refs & Annos)
MD Code, Courts and Judicial Proceedings, § 5-408
§ 5-408. Credit agreements
Currentness
Definitions
(a)(1) In this section the following words have the meanings indicated.
(2)(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.
Enforceable credit agreements
(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.
Application of section
(c)(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.

Credits

Added as Courts and Judicial Proceedings § 5-317 by Acts 1989, c. 682, § 1, eff. July 1, 1989. Renumbered as Courts and Judicial Proceedings § 5-408 by Acts 1997, c. 14, § 9, eff. April 8, 1997.
MD Code, Courts and Judicial Proceedings, § 5-408, MD CTS & JUD PRO § 5-408
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document