2018 Maryland Code
Commercial Law
Title 12 - Credit Regulations
Subtitle 1 - Interest and Usury
§ 12-114. Penalties
(a) Section inapplicable to loan under § 12-114.1 of this subtitle. -- This section does not apply to a loan subject to § 12-114.1 of this subtitle.
(b) 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.
(c) 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 1 year or both.
(d) 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.