Annapolis, MD asked in Business Law for Maryland

Q: What is the maximum interest I can charge for a business tenant rent default in Maryland

this is a partial rent default by an offshore tenant

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1 Lawyer Answer
Cedulie Renee Laumann
Cedulie Renee Laumann
  • Crownsville, MD
  • Licensed in Maryland

A: Maryland's usury laws are fairly complicated. The location of the tenant is likely irrelevant. The general legal rate of interest in MD is 6%. Most of the time people can charge up to 8% so long as there is a written agreement to that effect. However parties can agree in various situations to higher interest rates in writing, up to 24% and in some cases higher. Federally charted banks don't follow the same rules and a corporation can be charged any interest rate the parties agree to. A "business tenant" may or may not be a corporation, though.

This is not an exhaustive look at the nuances of interest law in Maryland.

It is often advisable to seek legal counsel before drafting a commercial lease. None of the foregoing is legal advice but I hope you find the general information helpful.

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