{"data":{"id":"us-md/md.-code-commercial-law-12-114.1","jurisdiction":"us-md","citation":"Md. Code, Commercial Law § 12–114.1","heading":"","body":"(a) (1) In this section the following words have the meanings indicated.\n(2) (i) “Covered loan” means a loan subject to § 12–103(a)(3) or (c) of this subtitle, made for personal, family, or household purposes, regardless of whether the loan is or purports to be made under this subtitle.\n(ii) “Covered loan” does not include:\n1. A loan or an advance of money or credit subject to Subtitle 3 of this title, unless a written election is made under § 12–101.1 of this subtitle;\n2. A plan or loan for which a written election has been made under Subtitle 3, Subtitle 4, Subtitle 9, or Subtitle 10 of this title; or\n3. An installment sale agreement as defined in § 12–601 of this title.\n(3) “Unlicensed person” means a person who is not:\n(i) Licensed in the State to make a covered loan; and\n(ii) Exempt from licensing in the State.\n(b) This section applies to a covered loan made to any person.\n(c) (1) An unlicensed person may not make a covered loan.\n(2) A person may not make a covered loan if the person directly or indirectly contracts for, charges, or receives a rate of interest, charge, discount, or other consideration that is greater than the amount authorized under State law.\n(3) A person may not make a covered loan that violates the federal Military Lending Act.\n(d) (1) A covered loan made by an unlicensed person is void and unenforceable.\n(2) (i) Except as provided in subparagraph (ii) of this paragraph, a covered loan is void and unenforceable if a person contracts for a covered loan that has a rate of interest, charge, discount, or other consideration greater than the amount authorized under State law.\n(ii) A covered loan is not void and unenforceable if:\n1. A clerical error or mistake resulted in the rate of interest, charge, discount, or other consideration being greater than the amount authorized under State law; and\n2. A person corrects the error or mistake before the first payment is due under the loan.\n(3) A covered loan that violates the federal Military Lending Act is void and unenforceable.\n(4) With respect to a loan that is void and unenforceable under this section, a person may not:\n(i) Collect or attempt to collect, directly or indirectly, any amount from the borrower;\n(ii) Enforce or attempt to enforce the contract against any property securing the loan; or\n(iii) Sell, assign, or otherwise transfer the loan to another person.","path":["Article - Commercial Law"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcl\u0026section=12-114.1","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:56:33Z","sha256":"78f994b2499ad538f82ec58ec0955f084119f49de948aebfc702ed8def73d9a2","source_id":"us-md","stale":false,"prev":"us-md/md.-code-commercial-law-12-114","next":"us-md/md.-code-commercial-law-12-115"},"notice":"GroundRules: Original legal text. Not legal advice."}