Section 12-114.1 - Covered loan prohibitions(a)(1) In this section the following words have the meanings indicated.(2)(i) "Covered loan" means a loan subject to § 12-103(a)(3) or (c) of this subtitle, made for personal, family, or household purposes, regardless of whether the loan is or purports to be made under this subtitle.(ii) "Covered loan" does not include:1. A loan or an advance of money or credit subject to Subtitle 3 of this title, unless a written election is made under § 12-101.1 of this subtitle;2. A plan or loan for which a written election has been made under Subtitle 3, Subtitle 4, Subtitle 9, or Subtitle 10 of this title; or3. An installment sale agreement as defined in § 12-601 of this title.(3) "Unlicensed person" means a person who is not: (i) Licensed in the State to make a covered loan; and(ii) Exempt from licensing in the State.(b) This section applies to a covered loan made to any person.(c)(1) An unlicensed person may not make a covered loan.(2) A person may not make a covered loan if the person directly or indirectly contracts for, charges, or receives a rate of interest, charge, discount, or other consideration that is greater than the amount authorized under State law.(3) A person may not make a covered loan that violates the federal Military Lending Act.(d)(1) A covered loan made by an unlicensed person is void and unenforceable.(2)(i) Except as provided in subparagraph (ii) of this paragraph, a covered loan is void and unenforceable if a person contracts for a covered loan that has a rate of interest, charge, discount, or other consideration greater than the amount authorized under State law.(ii) A covered loan is not void and unenforceable if: 1. A clerical error or mistake resulted in the rate of interest, charge, discount, or other consideration being greater than the amount authorized under State law; and2. A person corrects the error or mistake before the first payment is due under the loan.(3) A covered loan that violates the federal Military Lending Act is void and unenforceable.(4) With respect to a loan that is void and unenforceable under this section, a person may not: (i) Collect or attempt to collect, directly or indirectly, any amount from the borrower;(ii) Enforce or attempt to enforce the contract against any property securing the loan; or(iii) Sell, assign, or otherwise transfer the loan to another person.Amended by 2018 Md. Laws, Ch. 790,Sec. 1, eff. 1/1/2019.Added by 2018 Md. Laws, Ch. 732,Sec. 2, eff. 1/1/2019.