Md. Code Ann., Com. Law § 12-913.1 permits a credit grantor to make a loan pursuant to Subtitle 10, Title 12 of Maryland’s Commercial Law, if such an election is made in the promissory note (or any other agreement evidencing the loan), for closed-end credit transactions.
Similarly, Ibid. § 12-913.1 allows a loan to be made pursuant to Subtitle 9, Title 12 of Maryland’s Commercial Law, for open-end credit transactions. Again, the election must be made in the agreement governing the transaction (see Md. Regs. Code 09.03.06.08[B]).
In order to accommodate clients who may wish to have their loans subject to these Subtitles, we will be providing new documents Cx17451 and 17452. Both of these documents will print when:
1. “Document Package Type” equals “Closing.”
2. “Governed by Tit. 12, Sub. 9 or 10 of Comm. Law of Maryland” equals “Yes.”
3. “State Code” equals “Maryland.”
In addition, Cx17451 (which amends the HELOC Agreement) will print when “HELOC” equals “Yes” Cx17452 (which amends a closed-end loan’s promissory note) will print when “HELOC” equals “No.”
The text of these documents include the election by the lender to make the loan subject to the applicable Subtitle, as well as language in which the borrower acknowledges his consent to such election and that he has no objections to it.
These documents will begin printing on January 9, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
January 2, 2014