Section 12-114 - Penalties. - Maryland Statutes

§ 12-114. Penalties.
 

(a)  Usury.-  

(1) Any person who violates the usury provisions of this subtitle shall forfeit to the borrower the greater of: 

(i) Three times the amount of interest and charges collected in excess of the interest and charges authorized by this subtitle; or 

(ii) The sum of $500. 

(2) A claim or plea of usury is not valid if, within 30 days from the date the loan contract was executed, the lender: 

(i) Notifies the borrower and any other party to the loan contract that the loan was usurious; and 

(ii) Agrees to modify it by substituting for the usurious rate of interest a legal rate of interest not exceeding the stated rate of interest. 

(b)  Failure to provide required statement.- Any person who violates the disclosure provisions of § 12-106 (b) and (c) of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding one year or both. 

(c)  Applicability of section.- Even if a loan document is executed outside of the State, this section is applicable if the loan is made to a resident of Maryland and is secured by property located within the State. 
 

[An. Code 1957, art. 49, §§ 8, 10; 1975, ch. 49, § 3; ch. 269; 1988, ch. 559; 1999, ch. 34, § 7.]