Maryland Code, COMMERCIAL LAW 12-123
Terms Used In Maryland Code, COMMERCIAL LAW 12-123
- Contract: A legal written agreement that becomes binding when signed.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(b) A lender shall comply with this section if the lender:
(1) Makes any loan secured by a first mortgage or a first deed of trust on any interest in owner-occupied residential real property; and
(2) As a condition of making the loan, requires the borrower to purchase property insurance or credit loss insurance.
(c) A lender who makes a loan subject to this section shall accept as evidence of insurance a written binder issued by any authorized insurer or its insurance producer if the binder includes or is accompanied by:
(1) The name and address of the insured borrower;
(2) The name and address of the lender;
(3) A description of the insured residential real property;
(4) A provision that the binder may not be canceled within the term of the binder unless the lender and the insured borrower receive written notice of the cancellation at least 10 days prior to the cancellation;
(5) Except in the case of the renewal of a policy subsequent to the closing of the loan, a paid receipt for the full amount of the applicable premium; and
(6) The amount of coverage.
(d) This section does not prohibit a lender from refusing to honor a binder in cases where:
(1) The lender receives notice of the cancellation of the binder by the insurer; or
(2) At the expiration of 30 days of the date the binder was given, the insurer has failed to issue the policy of insurance.