Senate OKs measure on equity loans
In a move that essentially reverses a ruling by the state's highest court, the Maryland Senate approved a bill yesterday to allow state-chartered banks to continue extending certain home equity loans.
The bill passed on a 34-10 vote over the objections of some lawmakers who said it would give banks too much leeway with regulators.
The bill also would limit lender liability if a court determines that certain costs are not allowed and that lender had previously obtained regulatory approval for passing on those costs.
The bill, which has been approved in the House of Delegates, lowers damages that Provident Bank could have been asked to pay in a lawsuit over the home equity loans in question.
The Court of Appeals had ruled it was illegal for banks to recoup waived closing costs when borrowers pay off such loans early.
Sen. Brian E. Frosh, a Montgomery County Democrat, called the liability provision a "get-out-of-jail-free card." He warned before the vote that if lawmakers passed the bill, "it will give new meaning to the term bank holiday."
Laura Smitherman
Anne Arundel
: Annapolis
Senate passes fine increase
The Maryland Senate voted unanimously yesterday to raise civil fines for furnishing alcohol to someone under the age of 21.
The measure raises the maximum fine for the first offense from $1,000 to $2,500, and the fine for subsequent offenses from $1,500 to $5,000.
This week, the chamber rejected a proposal to impose criminal penalties for violations.
The House of Delegates approved legislation last month that would make giving an alcoholic beverage to underage drinkers a misdemeanor punishable by up to 60 days in jail or a fine of up to $1,000.
The two chambers must work out their differences for any legislation to be sent to Gov. Martin O'Malley for his signature.
Laura Smitherman
Teen driver bill approved
Addressing a spate of deadly car accidents involving teenage drivers in Maryland, the state Senate unanimously approved legislation yesterday that would require the Motor Vehicle Administration to notify the co-signer of a minor's driver's license application about every moving violation.
The chamber also approved by unanimous vote legislation that expands the offenses committed by drivers younger than 18 years old for which the MVA must seek or impose a mandatory license suspension.
