Default Interest
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Statutes
In the case of a loan to a consumer borrower, no late or delinquency charge may be charged unless the agreement, note, or other evidence of the loan permits. No more than one late or delinquency charge may be imposed for any single payment or portion of payment, regardless of the period during which it remains in default and all payments by the borrower shall be applied to satisfaction of scheduled payments in the order in which they become due. Maryland permits a lender or lessee to charge a higher default rate of interest in non-consumer loans only if such default rate is specifically provided for in the written agreement. Md. Code, Com. Law §12-1008
Cases
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Contributors
Steven N. Leitess
Leitess Friedberg PC
The statutory information was edited and reviewed with the support of MultiState
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