(a) In this subtitle the following words have the meanings indicated. (b) "Borrower" means a person who borrows money under this subtitle. (c) "Commercial loan" means a loan which is made: (1) Solely to acquire or carry on a business or commercial enterprise; or (2) To any business or commercial organization. (d) "Effective rate of simple interest" means the yield to maturity rate of interest received or to be received by a lender on the face amount of a loan, computed in accordance with § 12-107 of this subtitle. (e) "Interest" means, except as specifically provided in § 12-105 of this subtitle or § 12-1501 of this title, any compensation directly or indirectly imposed by a lender for the extension of credit for the use or forbearance of money, including any loan fee, origination fee, service and carrying charge, investigator's fee, time-price differential, and any amount payable as a discount or point or otherwise payable for services. (f) "Lender" means a licensee or a person who makes a loan subject to this subtitle. (g) "Licensee" means a person that is required to be licensed to make loans subject to this subtitle, regardless of whether the person is actually licensed. (h) (1) "Loan" means a loan or an advance of money or credit subject to this subtitle, regardless of whether the loan or advance of money or credit is or purports to be made under this subtitle. (2) "Loan" does not include: (i) A loan or advance of money or credit subject to Subtitle 3 of this title, unless a written election is made under § 12-101.1 of this subtitle; (ii) A plan or loan for which a written election is made under Subtitle 3, Subtitle 4, Subtitle 9, or Subtitle 10 of this title; or (iii) An installment sale agreement as defined in § 12-601 of this title. (i) "Mobile home" has the meaning stated in § 11-501 of the Financial Institutions Article. (j) "Person" includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity. (k) "Point" means a fee, premium, bonus, loan origination fee, service charge, or any other charge equal to 1 percent of the principal amount of a loan which is charged by the lender at or before the time the loan is made as additional compensation for the loan. (l) "Simple interest" means interest charged on the principal amount loaned to the borrower. (m) "Stated rate of interest" means the annual rate of interest stated in percentage which appears on the face of the bond, draft, mortgage, deed of trust, security agreement, promissory note, or other instrument which evidences the indebtedness. (n) (1) "Tip" means a voluntary payment by a consumer to a lender or third party who provides or arranges a loan: (i) Made at the time of the transaction in recognition of the lender's or third party's provision or arrangement of the loan; (ii) Made at the sole discretion of the consumer; and (iii) That does not affect the willingness of the lender or third party to provide or arrange the loan or any future loan or affect the terms of any loan. (2) "Tip" does not include any payment made by a consumer for expedited processing or disbursement or for a membership, registration, or subscription fee. (o) "Usury" means the charging of interest by a lender in an amount which is greater than that allowed by this subtitle. (p) "Wages" means all remuneration paid to any employee for the employee's employment, including the cash value of all remuneration paid in any medium other than cash.
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