Loans in Maryland
1. What is the maximum possible rate of interest for a loan made in Maryland, by a Maryland-based creditor?
Answer: 6%
2. Assuming that an unsecured consumer loan falls within the Interest and Usury subtitle, what would be the maximum rate of interest for a loan made by oral agreement?
Answer: There is no absolute maximum because there is no cap on rates for some kinds of loan.
3. Assuming that a loan falls within the Interest and Usury subtitle, which of the following would be FALSE?
Answer: To have an interest rate higher than 6%, all loans must be in writing.
4. Which of the following would NOT be covered by the definition of Creditor under TILA?
Answer: A store which allows an individual to buy a $500 computer, with the price payable in one month, on the condition that the individual also purchases a $50 extended warranty on the computer.
5. Suppose that you wanted to charge the highest possible interest rate on a $10,000 consumer loan, to an individual, not secured by real property (and assume that you did not care about any other factor but the interest rate). Which of the following kinds of loans would be the...
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