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§ 6-601. Member loans

West's Annotated Code of MarylandFinancial Institutions

West's Annotated Code of Maryland
Financial Institutions
Title 6. Credit Unions (Refs & Annos)
Subtitle 6. Loans (Refs & Annos)
MD Code, Financial Institutions, § 6-601
§ 6-601. Member loans
Currentness
In general
(a) Subject to the provisions of this subtitle, a credit union may make loans and extend lines of credit to its members in accordance with written policies established by the board.
Revolving credit plans or extensions of credit
(b) Notwithstanding subsection (e) of this section, § 6-606(d) of this subtitle, and § 12-913.1 of the Commercial Law Article, on or after October 1, 1994, a revolving credit plan and extensions of credit under a revolving credit plan offered and extended by a credit union to a member are made under and are subject to Title 12, Subtitle 9 of the Commercial Law Article.
Closed end loans
(c) Notwithstanding subsection (e) of this section, § 6-606(d) of this subtitle, and § 12-1013.1 of the Commercial Law Article, on or after October 1, 1994, a closed end loan made by a credit union to a member is made under and is subject to Title 12, Subtitle 10 of the Commercial Law Article.
Extension of credit or loans made before October 1, 1994
(d) Except as provided in subsection (e) of this section and § 6-606(d) of this subtitle, and except as otherwise provided under the express terms of the agreement, note, or other evidence of an extension of credit or loan, the provisions of Title 12, Subtitle 1, 3, 4, 5, 6, 9, or 10 of the Commercial Law Article do not apply to an extension of credit or loan made by a credit union before October 1, 1994.
Extension of credit or loans made on or after October 1, 1994
(e)(1) This subsection does not apply to an extension of credit or loan made by a credit union on or after October 1, 1994.
(2) Except as otherwise expressly provided in this title, a credit union may not charge interest on any loan to a member at a rate of more than 1.5% a month on the unpaid balance.
(3) Notwithstanding the provisions of paragraph (1) of this subsection, a credit union may charge interest on a loan to a member made on or after July 1, 1982, at 2% a month on the unpaid balance provided, with respect to the loan, that:
(i) If the loan is a renewal or refinancing of a loan made prior to July 1, 1982, the lender complies with § 12-116 of the Commercial Law Article;
(ii) If the loan includes a provision for a rate of interest which may be adjusted by the lender during the term of the loan, the lender complies with § 12-118 of the Commercial Law Article;
(iii) Upon the borrower's default, if the loan is secured by personal property, the lender complies with § 12-115 of the Commercial Law Article concerning repossession and redemption of the goods securing the loan;
(iv) If the loan is for the purchase of consumer goods, the loan contract complies with § 12-117 of the Commercial Law Article; and
(v) The loan does not include a balloon payment, unless payment in full is due on demand or in 1 year or less.
Fees, account records, and statements
(f) Notwithstanding any provision of Title 12 of the Commercial Law Article, if the credit agreement provides, a credit union may make loans or extend credit to its members incorporating the same terms and conditions as a federal credit union is permitted under federal law and regulations relating to:
(1) Over the limit fees for credit cards; and
(2) Fees for ancillary and administrative services requested by the member, including:
(i) Researching account records;
(ii) Providing duplicate statements and other documents; and
(iii) Expedited issuance of a duplicate or original credit card or device.

Credits

Added as Financial Institutions § 6-501 by Added by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1981, c. 166; Acts 1994, c. 549, § 1, eff. Oct. 1, 1994. Renumbered as Financial Institutions § 6-601 and amended by Acts 2001, c. 147, § 1, eff. Oct. 1, 2001; Acts 2001, c. 148, § 1, eff. Oct. 1, 2001.
Formerly Art. 11, § 152.
MD Code, Financial Institutions, § 6-601, MD FIN INST § 6-601
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.
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