§ 12-114. Penalties

   (a) 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.

(b) 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 one year or both.

(c) 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.

HISTORY: An. Code 1957, art. 49, § 8, 10; 1975, ch. 49, § 3; ch. 269; 1988, ch. 559; 1999, ch. 34, § 7.