Maryland § 12-106
Full text of Maryland Maryland Code § 12-106, with citation guidance and answers to common questions.
§ 12-106.
(a) This section does not apply to any loan:
(1) Described in § 12-103(e) of this subtitle; or
(2) Made under Title 18, Subtitle 10 of the Education Article.
(b) (1) Before the execution of a loan contract under this title, the lender shall furnish to the borrower a written statement which sets forth:
(i) The total principal amount of the loan and the total amount of finance charge as defined in the federal Truth in Lending Act to be paid, stated in dollars, except that on loans payable on demand, the total amount of finance charge to be paid shall be stated on a per diem basis;
(ii) The annual effective rate of simple interest charged, stated in percentage calculated to the nearest 0.2 percent; and
(iii) The itemized amount of payments in addition to interest payable to the lender in connection with the loan at the time the loan is made, stated in dollars.
(2) If the loan is made to two or more borrowers, delivery of the statement to one borrower is sufficient, but a copy of the statement shall be furnished to each other borrower.
(3) Paragraphs (1)(i), (ii), and (iii) of this subsection do not apply to any loan subject to the disclosure provisions of the federal Truth in Lending Act, if the lender complies with the applicable disclosure provisions of the federal act and its regulations.
(4) A statement that complies with the applicable disclosure provisions of the federal Truth in Lending Act is sufficient to meet the requirements of this title.
(c) At least annually and, on request of the borrower, at any other reasonable time or interval, a lender who receives scheduled monthly periodic payments on more than five loans secured by an interest in real property shall furnish to the borrower a written statement informing the borrower of the amount of:
(1) Payments credited to reducing the principal;
(2) Payments credited to interest as defined in this subtitle; and
(3) The remaining unpaid principal balance.
Frequently Asked Questions About Maryland § 12-106
What does Maryland Code § 12-106 cover?
Section 12-106 is part of the Maryland Code, the codified statutory law of Maryland. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Maryland § 12-106?
A common citation format is "Maryland Code § 12-106" (Maryland). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Maryland law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Maryland official source linked on this page or consult a licensed Maryland attorney.
How does Maryland § 12-106 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Maryland can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Maryland.