Md. Code Regs. 09.03.02.04

Current through Register Vol. 51, No. 12, June 14, 2024

Section 09.03.02.04 - Books and Records

Each licensed office shall maintain the following records:

A. Loan Register. All loans shall be listed in a register in numerical order showing, in addition to the loan number, the date of loan, name of principal borrower, and amount of loan.

B. Individual Ledger Record. A separate ledger record shall be maintained for each borrower, showing the loan number, borrower's name and address, names of endorsers, comakers, guarantors or sureties, the amount of loan, the schedule of payments, and the type of security. In addition, the record shall show the date and amount of all payments of interest and principal as well as the principal balance due.

C. File of Original Papers. For each borrower or loan account, a separate file shall be maintained containing all papers relating to the borrower or the loan, except that promissory notes and security instruments may be kept in a separate legal paper file bearing the same account number. If notes have been hypothecated, the file shall reveal where and to whom these notes are hypothecated.

D. Receipts and Disbursement Record. All receipts from or for the account of borrowers and all disbursements to or for the account of borrowers shall be clearly recorded in a manner that makes the transactions readily identifiable.

E. Index of Obligors. An alphabetical index of all borrowers, endorsers, guarantors, or comakers shall be maintained, showing the related loan numbers.

F. Litigation and Repossession Records. The records of the licensee (individual ledger record or similar record) shall show all essential details with respect to litigation or repossession, or both. This detail with respect to litigation shall include the amount and date of judgments and any costs charged to the borrowers. With respect to repossession, the record shall include the date, amount then due, type of security repossessed, and the amount realized from sale of the security.

G. Acceptance of Equivalent Records. Records and accounting systems maintained in whole or in part by mechanical or electronic data processing methods may be used instead of the books and records required by this regulation if they contain equivalent information.

H. Credit Life Claim Register. Each licensee shall maintain a register of death claims showing the following minimum information:

(1) Loan or account number;

(2) Name of insured borrower;

(3) Date of death of insured;

(4) Date of official notification to licensee;

(5) Date claim submitted to insurer;

(6) Date settlement received from insurer;

(7) Amount of settlement received by principal beneficiary;

(8) Amount of settlement, if any, received by second beneficiary;

(9) Amount of refund of unearned accident and health premium, if any.

I. Accident and Health Claim Register. Each license shall maintain a register of claims involving accident and health insurance showing the following minimum information:

(1) Loan or account number;

(2) Name of insured borrower;

(3) Waiting period, if any, in order to qualify for payment;

(4) Date disability began;

(5) Date disability ended;

(6) Date of doctor's certificate certifying disability and date certificate received by licensee;

(7) Date claim submitted to insurer by licensee;

(8) Dates and amount of payments received from insurer by licensee.

J. Purchased Loan Account Register. Within 30 days after the purchase of loan accounts from another licensee, the purchasing licensee shall maintain a list of these purchased accounts. The licensee shall also keep a list of "double loan" accounts resulting from the purchase, including the borrower's name, address, account number, and the amount of loan outstanding. The licensee shall maintain this register in compliance with Financial Institutions Article, § 11-213, Annotated Code of Maryland.

Md. Code Regs. 09.03.02.04

Regulations .04 effective July 1, 1970