2013 Maryland Code
COMMERCIAL LAW
§ 12-307 - Collection of certain fees
§12-307.
(a) At the time a loan is made, a lender may collect from the borrower:
(1) As to any item of the total property that secures a loan:
(i) The fees paid to a public official or governmental agency for recording or satisfying a mortgage, encumbrance, or lien on any property securing the loan; or
(ii) An equal or lesser amount for nonfiling insurance premium on any property, or portion of the property, that is not recorded if:
1. The Insurance Commissioner approves the rates; and
2. A commission is not paid on the policy; and
(2) The title insurance premiums or reasonable attorney’s fees paid for searching and insuring the title to any real property securing the loan.
(b) A lender may collect from the borrower a fee not exceeding $15 if payment is made with a check that is dishonored on the second presentment.
§ 12-307 - 1. Collection of certain fees -- Attorney's fees and court costs
(a) Lender may collect court costs and attorney's fees from borrower. -- On any loan with an original principal balance of more than $ 2,000, if a borrower defaults under the terms of a loan and the lender refers the borrower's account for collection to an attorney who is not a salaried employee of the lender, and if the note, contract, or other evidence of the loan permits, the lender may charge and collect from the borrower court costs and attorney's fees not exceeding 15 percent of the amount due and payable under the terms of the loan.
(b) Loans of $2,000 or less. -- On any loan with an original principal balance of $ 2,000 or less, if a borrower defaults under the terms of a loan and the lender refers the borrower's account for collection to an attorney who is not a salaried employee of the lender, and if the note, contract, or other evidence of the loan permits, the lender may recover from the borrower court costs and attorney's fees not exceeding 15 percent of the amount due and payable under the terms of the loan, to be set by the court in the event of the filing of suit.
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