2022 Maryland Statutes
Courts and Judicial Proceedings
Title 5 - Limitations, Prohibited Actions, and Immunities
Subtitle 4 - Immunities and Prohibited Actions -- Businesses, Associations, and Charities
Section 5-408 - Credit Agreements

    (a)    (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)    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)    (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.