A. Effect of Outstanding Balance of Zero.
- (1) If the outstanding balance of an enrolled loan that is not a line of credit is reduced to $0, the loan is no longer an enrolled loan.
- (2) If an enrolled loan that is a line of credit has an outstanding balance of $0 for a period of 12 months, the line of credit is no longer an enrolled loan, unless, before the expiration of the 12-month period, the lender reaffirms in writing to the borrower that the line of credit will remain open and the borrower acknowledges the reaffirmation in writing.
- B. Notwithstanding §A of this regulation, any amount recovered from a lender by a trustee in bankruptcy, or a similar representative of creditors, as a preference under 11 U.S.C. §547, remains an enrolled loan for the purpose of filing a claim against the reserve account.
Authority: Housing and Community Development Article, §§2-102 and 4-504, and Title 6, Subtitle 3, Annotated Code of Maryland
Effective date: December 25, 2000 (27:25 Md. R. 2279)
Regulation .03B amended effective June 19, 2006 (33:12 Md. R. 996)
Regulation .11C amended effective June 19, 2006 (33:12 Md. R. 996)
Regulation .12B amended effective June 19, 2006 (33:12 Md. R. 996)
Regulation .17A amended effective June 19, 2006 (33:12 Md. R. 996)
Regulation .25 amended effective March 16, 2015 (42:5 Md. R. 485)