1. (a)

   1. (1) In this section the following words have the meanings indicated.

   2. (2)

      1. (i) “Credit agreement” means a covenant, promise, undertaking, commitment, or other agreement by a financial institution to:

         1. 1. Lend money;
         2. 2. Forbear from repayment of money, goods, or things in action;
         3. 3. Forbear from collecting or exercising any right to collect a debt; or
         4. 4. Otherwise extend credit.
      2. (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. (3) “Financial institution” means:

      1. (i) A bank;
      2. (ii) A trust company;
      3. (iii) A savings bank;
      4. (iv) A savings and loan association; or
      5. (v) An affiliate or subsidiary of a bank, trust company, savings bank, or savings and loan association.

2. (b) A credit agreement is not enforceable by way of action or defense unless it:

   1. (1) Is in writing;
   2. (2) Expresses consideration;
   3. (3) Sets forth the relevant terms and conditions of the agreement; and
   4. (4) Is signed by the person against whom its enforcement is sought.

3. (c)

   1. (1) This section applies only to commercial transactions.

   2. (2) This section does not apply to:

      1. (i) Credit agreements made primarily for personal, family, or household purposes; or
      2. (ii) Credit extended by means of, or in connection with, a credit or charge card.

Added as Courts and Judicial Proceedings § 5-317 by Acts 1989, c. 682, § 1, eff. July 1, 1989. Renumbered as Courts and Judicial Proceedings § 5-408 by Acts 1997, c. 14, § 9, eff. April 8, 1997.