Maryland Commercial Law Section 12-109.1

      (a)      The provisions of this section do not apply to escrow accounts maintained in connection with loans described in § 12-103(e)(1) of this subtitle.

      (b)      Except in a foreclosure, release, or as provided in subsection (c) of this section, funds in any escrow account for use in paying taxes, insurance premiums and ground rents may not be used to:

            (1)      Reduce the principal; or

            (2)      Pay interest or other loan charges.

      (c)      If there is periodically a balance in the escrow account that exceeds the amount provided for in the note, loan agreement, or security instrument, the borrower shall be given at least annually the option of:

            (1)      Receiving a refund of the excess amount;

            (2)      Applying the excess amount to the payment of principal and interest; or

            (3)      Leaving the excess amount in the escrow account.

      (d)      A refund of any excess amount shall be made:

            (1)      Within 60 days after the receipt by the lender of the borrower's request for a refund; or

            (2)      If the borrower has not notified the lender of the option chosen by the borrower under subsection (c) of this section, within 60 days after the date the lender mailed notice of the excess amount to the borrower.