CODE OF MARYLAND
COMMERCIAL LAW
TITLE 12. CREDIT REGULATIONS
Subtitle 10. Credit Grantor Closed End Credit Provisions
Commercial Law § 12-1005 Additional fees and charge
In addition to interest at a periodic percentage rate or rates permitted by ss 12-1003 and 12-1004 of this subtitle, a credit grantor may charge and collect:
(a) (1) Subject to the limitations in this section, loan fees, points, finder's fees, and other charges; however, all such charges when combined with any finder's fee imposed by a mortgage broker under § 12-804 of this title, may not exceed 10 percent of the original extension of credit;
(2) In the case of a loan to a consumer borrower, no loan fees, points, finder's fees, or other charges may be charged and collected unless:
(i) The agreement, note, or other evidence of the loan so provides and the borrower agrees in writing to pay those charges;
(ii) The loan is secured by a lien on residential real property; however, all such charges, when combined with any finder's fee imposed by a mortgage broker under §12-804 of this title, may not exceed 10 percent of the original extension of credit; and
(iii) The charges are disclosed to the borrower in accordance with the federal Truth in Lending Act; and
(3) The limitations imposed by paragraphs (1) and (2) of this subsection do not apply to a credit extension:
(i) Secured by a first lien on residential real property; or
(ii) Made for a bona fide commercial purpose in excess of $75,000.
(b) Reasonable fees for services rendered or for reimbursement of expenses incurred in good faith by the credit grantor or its agents in connection with the loan, including:
(1) Commitment fees;
(2) Official fees and taxes;
(3) Premiums or other charges for any guarantee or insurance protecting the credit grantor against the borrower's default or other credit loss;
(4) Costs incurred by reason of examination of title, inspection, recording, and other formal acts necessary or appropriate to the security of the loan;
(5) Filing fees;
(6) Attorney's fees; and
(7) Travel expenses.
(c) (1) The cost to the borrower of an optional debt cancellation agreement, provided that the cost of the debt cancellation agreement is separately itemized in the financing agreement.
(2) This cost is in addition to the charges permitted under subsections (a), (b), and (d) of this section.
(d) In the case of a loan to a consumer borrower, a fee permitted under subsection (b) of this section may not be charged and collected unless:
(1) The agreement, note, or other evidence of the loan permits;
(2) The fee is an actual and verifiable expense of the credit grantor not retained by him; and
(3) Limited to charges for:
(i) Attorney's fees for services rendered in connection with the preparation, closing, or disbursement of the loan;
(ii) Any expense, tax, or charge paid to a governmental agency;
(iii) Examination of title, appraisal, or other costs necessary or appropriate to the security of the loan; and
(iv) Premiums for any insurance coverage permitted under this subtitle.
(e) For purposes of this subtitle, fees and charges permitted under this section are not interest with respect to a loan.
CODE OF MARYLAND
COMMERCIAL LAW
TITLE 12. CREDIT REGULATIONS
Subtitle 6. Retail Installment Sales
Part II. Installment Sales
Commercial Law § 12-613 Insurance
(a) Scope of section. – The provisions of this section are in addition to and not in substitution for any other applicable provision of statutory law.
(b) Premium.-- If a holder undertakes at the expense of the buyer to sell, purchase, or supply insurance on the goods sold, the amount charged the buyer for the insurance may not exceed the lesser of:
(1) The premium actually payable by the holder; or
(2) The rate charged for similar insurance coverage by those companies whose rates are promulgated by a nationally recognized organization of underwriters.
(c) Copy of charges to be mailed buyer; description of coverage.
(1) If the buyer is charged for insurance, the holder shall deliver or mail to the buyer at his address shown on the agreement, within 25 days after delivery of the goods, a copy of each insurance policy or an owner’s certificate representing the policy, which sets forth:
(i) The amount of the premium, type of insurance, scope of coverage, and each term, exception, limitation, restriction, and condition of the insurance contract; and
(ii) If the goods sold include a motor vehicle, a definite statement in 12-point bold type or larger as to whether the insurance includes coverage for personal liability and for property damage caused to others.
(2) If the holder assigns the agreement and has not complied with the requirements of this subsection, the assignee shall deliver or mail in like manner to the buyer the copy or certificate, within the same period or within the same period or within five days after the assignment, whichever is later.
(d) Cancellation, refunds, and dividends. – Each cancellation, surrender, or other refund and each dividend received under the insurance policy by the holder immediately shall be remitted to the buyer or credited against any amount then due by the buyer to the holder under the agreement.
(e) Deduction of insurance overcharge.
(1) If the amount charged for insurance exceeds the amount authorized by subsection (b) of this section, the buyer may deduct the overcharge from the amount of any payment.
(2) If the buyer does not deduct the overcharge from his payment, the holder shall credit the amount of the overcharge against the last installment or installments under the agreement.
(f) Deduction of full insurance charge.
(1) If the seller or his assignee does not comply with the requirements of subsection (c) of this section, the buyer may deduct the full amount charged to him for the insurance from the amount of any payment.
(2) If the buyer does not deduct the amount charged from his payment, the holder shall credit the amount charged against the last installment or installments under the agreement.
CODE OF MARYLAND
COMMERCIAL LAW
TITLE 12. CREDIT REGULATIONS
Subtitle 6. Retail Installment Sales
Part II. Installment Sales
Commercial Law § 12-614 Additional charges
(b) Exception. -- A holder may charge the buyer the following charges or fees:
(3) If no charge was made in the agreement on account of the insurance for the period covered, the premiums for insurance as provided by § 12-613 of this subtitle;
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