Section 5-408 - Credit agreements. - Maryland Statutes

§ 5-408. Credit agreements.
 

(a)  Definitions.-  

(1) In this section the following words have the meanings indicated. 

(2) (i) "Credit agreement" means a covenant, promise, undertaking, commitment, or other agreement by a financial institution to: 

1. Lend money; 

2. Forbear from repayment of money, goods, or things in action; 

3. Forbear from collecting or exercising any right to collect a debt; or 

4. Otherwise extend credit. 

(ii) "Credit agreement" includes agreeing to take or to not take certain actions by a financial institution in connection with an existing or prospective credit agreement. 

(3) "Financial institution" means: 

(i) A bank; 

(ii) A trust company; 

(iii) A savings bank; 

(iv) A savings and loan association; or 

(v) An affiliate or subsidiary of a bank, trust company, savings bank, or savings and loan association. 

(b)  Enforceability.- A credit agreement is not enforceable by way of action or defense unless it: 

(1) Is in writing; 

(2) Expresses consideration; 

(3) Sets forth the relevant terms and conditions of the agreement; and 

(4) Is signed by the person against whom its enforcement is sought. 

(c)  Applicability.-  

(1) This section applies only to commercial transactions. 

(2) This section does not apply to: 

(i) Credit agreements made primarily for personal, family, or household purposes; or 

(ii) Credit extended by means of, or in connection with, a credit or charge card. 
 

[1989, ch. 682; 1997, ch. 14, § 9.]