Maryland Statutes
Subtitle 4 - Immunities and Prohibited Actions -- Businesses, Associations, and Charities
Section 5-408 - Credit Agreements

(a)    (1)    In this section the following words have the meanings indicated.
        (2)    (i)    “Credit agreement” means a covenant, promise, undertaking, commitment, or other agreement by a financial institution to:
                1.    Lend money;
                2.    Forbear from repayment of money, goods, or things in action;
                3.    Forbear from collecting or exercising any right to collect a debt; or
                4.    Otherwise extend credit.
            (ii)    “Credit agreement” includes agreeing to take or to not take certain actions by a financial institution in connection with an existing or prospective credit agreement.
        (3)    “Financial institution” means:
            (i)    A bank;
            (ii)    A trust company;
            (iii)    A savings bank;
            (iv)    A savings and loan association; or
            (v)    An affiliate or subsidiary of a bank, trust company, savings bank, or savings and loan association.
    (b)    A credit agreement is not enforceable by way of action or defense unless it:
        (1)    Is in writing;
        (2)    Expresses consideration;
        (3)    Sets forth the relevant terms and conditions of the agreement; and
        (4)    Is signed by the person against whom its enforcement is sought.
    (c)    (1)    This section applies only to commercial transactions.
        (2)    This section does not apply to:
            (i)    Credit agreements made primarily for personal, family, or household purposes; or
            (ii)    Credit extended by means of, or in connection with, a credit or charge card.

Structure Maryland Statutes