{"data":{"id":"us-md/md.-code-commercial-law-12-1023.1","jurisdiction":"us-md","citation":"Md. Code, Commercial Law § 12–1023.1","heading":"","body":"(a) Any statement or characterization that indicates the borrower intends to obtain a loan solely to acquire an interest in or to carry on a business or commercial enterprise may be relied upon by a credit grantor in making the loan, unless the credit grantor knows or should know that the statement or characterization is false or misleading.\n(b) As a condition to making a loan, a credit grantor may not require a borrower to make any false or misleading statement or characterization that the loan is a commercial loan or for a commercial purpose if the credit grantor knows or should know it is not a commercial loan or for a commercial purpose.\n(c) The borrower has the burden of proving that a credit grantor knew or should have known that a statement or characterization described in subsection (a) or (b) of this section was false or misleading when made and that the loan was not a commercial loan or for a commercial purpose.\n(d) Unless a credit grantor knew or should have known that a statement or characterization described in subsection (a) or (b) of this section was false or misleading when made, a credit grantor shall have no liability under this subtitle if a loan is actually used by the borrower other than as a commercial loan or for a commercial purpose.","path":["Article - Commercial Law"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcl\u0026section=12-1023.1","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:56:33Z","sha256":"e801774a348cc7958c029a2d41b1a0e71c340eab3b5fa6ea0fec828737c2ee88","source_id":"us-md","stale":false,"prev":"us-md/md.-code-commercial-law-12-1023","next":"us-md/md.-code-commercial-law-12-1024"},"notice":"GroundRules: Original legal text. Not legal advice."}