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Maryland Code, Commercial Law § 12-402.1

Current as of January 01, 2025 | Updated by Findlaw Staff

(a)(1) On or after January 1, 2019, a lender may, at the lender's option, elect to make a loan to any borrower either under this subtitle or as otherwise authorized by applicable law.

(2) In order to make a loan under this subtitle, a lender shall make a written election in the agreement, note, or other evidence of the loan specifying that this subtitle will govern the loan.

(b)(1) If a lender elects to make a loan under this subtitle in accordance with this section, Subtitles 1, 3, 9, and 10 of this title do not apply to the loan.

(2) If a lender who makes or contracts to make a loan does not make a written election under this subtitle or Subtitle 1, Subtitle 3, Subtitle 9, or Subtitle 10 of this title:

(i) Subtitle 1 of this title will apply to the loan if the loan is:

1. For an amount over $25,000; or

2. A. For an amount of $25,000 or less; and

B. Not subject to Subtitle 3 of this title; or

(ii) Subtitle 3 of this title will apply to the loan if the loan is:

1. For an amount of $25,000 or less; and

2. Subject to Subtitle 3 of this title.

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Cite this article: FindLaw.com - Maryland Code, Commercial Law § 12-402.1 - last updated January 01, 2025 | https://codes.findlaw.com/md/commercial-law/md-code-coml-sect-12-402-1/

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