(a) This section does not apply to a loan subject to § 12-114.1 of this subtitle.
(b)(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.
Credits
Added by Acts 1975, c. 49, § 3, eff. July 1, 1975. Amended by Acts 1975, c. 269; Acts 1988, c. 559; Acts 1999, c. 34, § 7, eff. April 13, 1999; Acts 2018, c. 732, § 2, eff. Jan. 1, 2019; Acts 2018, c. 790, § 1, eff. Jan. 1, 2019.
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
