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§ 12-1008. Default and delinquency

West's Annotated Code of MarylandCommercial Law

West's Annotated Code of Maryland
Commercial Law
Title 12. Credit Regulations
Subtitle 10. Credit Grantor Closed End Credit Provisions (Refs & Annos)
MD Code, Commercial Law, § 12-1008
§ 12-1008. Default and delinquency
Currentness
(a) If the agreement governing a loan permits, a credit grantor may:
(1) For a nonconsumer borrower, charge a higher periodic percentage rate or rates of interest on the amount of outstanding unpaid payments or portions of payments under the loan which are in default; and
(2) For any borrower, impose:
(i) A late or delinquency charge on payment or portions of payments; and
(ii) If payment is made with a check that is dishonored on the second presentment, a charge not to exceed $15.
(b) In the case of a loan to a consumer borrower, no late or delinquency charge may be charged unless the agreement, note, or other evidence of the loan permits. No more than 1 late or delinquency charge may be imposed for any single payment or portion of payment, regardless of the period during which it remains in default.
(c) For the purposes of subsection (b) of this section, all payments by the borrower shall be applied to satisfaction of scheduled payments in the order in which they become due.
(d) Charges permitted under this section may not be considered interest or finance charges under the agreement.

Credits

Added by Acts 1983, c. 143, § 1, eff. July 1, 1983. Amended by Acts 1986, c. 451; Acts 1991, c. 432.
MD Code, Commercial Law, § 12-1008, MD COML § 12-1008
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.
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