Title 09, Title 09: Commerce and Trade

§ 201. Definitions As used in this subchapter: (1) “Disbursement of loan funds” means the delivery of the loan funds by the lender to the settlement agent in one or more of the following forms: (A) cash; (B) wired funds or electronic transfer; (C) certified check; (D) checks issu…

§ 202. Applicability This subchapter applies only to transactions involving loans made by lenders, which loans are secured by a first lien on owner-occupied one-to-four-unit residential real estate, including first and second homes. (Added 2001, No. 55, § 2.)

§ 203. Duty of lender (a) The lender shall, at or before the loan closing, cause disbursement of loan funds to the settlement agent; however, in the case of a refinancing, or any other loan where a right of rescission applies but has not been exercised, the lender shall, prior to…

§ 204. Duty of settlement agent that is not a lender A settlement agent that has received the loan funds from the lender shall cause disbursement of settlement proceeds at the loan closing, or, for any other loan where a right of rescission applies, the settlement agent shall cau…

§ 205. Commissioner’s powers (a) The Commissioner may: (1) impose an administrative penalty of not more than $1,000.00 for each violation upon any person who violates or participates in the violation of this subchapter, or any lawful regulation or order issued thereunder; (2) ord…

§ 206. Consumer remedies (a) A lender or settlement agent who violates any provision of this subchapter and causes actual damage to a consumer is subject to a civil action by the aggrieved consumer in which the consumer has the right to recover the greater of actual damages in an…

§ 41a. Legal rates (a) Except as specifically provided by law, the rate of interest or the sum allowed for forbearance or use of money shall be 12 percent per annum computed by the actuarial method. (b) The rate of interest or the sum allowed: (1) For single payment loans by lend…

§ 41b. Rent-to-own agreements; disclosure of terms (a) Definitions. In this section: (1) “Advertisement” means a commercial message that solicits a consumer to enter into a rent-to-own agreement for a specific item of merchandise that is conveyed: (A) at a merchant’s place of bus…

§ 41c. Rent-to-own; assistive devices (a) As used in this section: (1) “Assistive device” means any item, piece of equipment, or product system, whether acquired commercially off-the-shelf, modified, or customized, that is used or designed to be used to increase, maintain, or imp…

§ 42. Permitted charges (a) Except for interest as provided in this chapter, a lender shall make no charges against a borrower for the use or forbearance of money other than: (1) the reasonable cost of credit investigation and appraisal fees; (2) the reasonable cost of title evid…

§ 43. Deposit requirement prohibited; exception A lender shall not, as a condition to granting or extending a loan, require a borrower to keep or place any sum on deposit with the lender or nominee of the lender, except for deposit arrangements directly related to secured credit …

§ 44. Certain charges not usurious Agreements to maintain with the lender non-interest bearing reserves or deposits with which to pay when due taxes and insurance premiums, or agreements clearly set forth in the loan contract for the payment of reasonable delinquency or deferral …

§ 45. Prepayment of loans A borrower may prepay a loan at any time, without prepayment premium or penalty. (Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968.)

§ 46. Exceptions Section 43 of this title, relating to deposit requirements, and section 45 of this title, relating to prepayment penalties, shall not apply and the parties may contract for a rate of interest in excess of the rate provided in section 41a of this title in the case…

§ 47. Application of payments (a) On a note, bill, or other similar obligation, payable on demand or at a specified time, with interest, when a payment is made, the payment shall be applied: first, to liquidate the interest accrued at the time of the payment; and second, to extin…

§ 48. Excess insurance, proceeds If a loan is paid before its due date as the result of the death of a borrower insured under a creditor life insurance policy and the insurance proceeds exceed the amount owing on the loan with interest, the excess shall be refunded to a beneficia…

§ 49. Computation of interest When a note, bill, or other similar obligation is payable on demand or at a specified time, with interest annually, the annual interest that remains unpaid shall bear simple interest from the time it becomes due to the time of final settlement; but i…

§ 50. Penalties (a) When a greater rate of interest than is allowed by law is paid, the person paying it may recover the amount so paid above the legal interest, with interest thereon from the time of payment and all expenses of collection, including reasonable attorney’s fees, i…