§ 5-408. Credit agreements

   (a) Definitions. --

   (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) Enforceability. -- 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) Applicability. --

   (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.

HISTORY: 1989, ch. 682; 1997, ch. 14, § 9.