J. MILLARD TAWES, Governor                      545

Sec. 2. And be it further enacted, That Section 7 of Article 43A
of the Annotated Code of Maryland (1965 Replacement Volume), title
"Higher Education Loan Program", be and it is hereby repealed and
re-enacted, to read as follows:

7.

(a)  The terms and conditions of any loan made or guaranteed by
the corporation shall not require the borrower thereof to commence
the repayment of his loan earlier than nine months or later than one
year after he ceases to pursue a full-time or part-time course of
study at an eligible college; provided, however, that the board may,
by rule, provide that such repayment shall not commence during any
period (1) during which the borrower is pursuing a full-time course
of study at an institution of higher education or at a comparable in-
situation approved by the United States Commissioner of Education;
(2) not in excess of three years during which the borrower is a mem-
ber of the armed forces of the United States; or (3) not in excess
of three years during which the borrower is in service as a vol-
unteer under the Peace Corps Act. The board may, by rule, deter-
mine whether any such period shall be included in determining the
ten-year period or the fifteen-year period provided in subsection (b)
hereof.

(b)   Such a borrower shall not be required to repay in full any
such loan over a period of less than five years or more than ten years
after commencement of repayment as provided in § 7 (a) of this
article; provided, however, (1) that the total of the payments by a
borrower during any year of repayment with respect to all loans
made or guaranteed by the corporation to him shall not be less than
three hundred sixty dollars of OR the balance of all such loans, which-
ever amount is less; and (2) notwithstanding any other provision
of this article to the contrary, the period of any loan made or guar-
anteed by the corporation shall not exceed fifteen years from the
execution of the note or written agreement evidencing it.

(c)   Notwithstanding any other provision of this article to the
contrary, any borrower of a loan made or guaranteed by the corpora-
tion may accelerate repayment of all or any part of such loan with-
out penalty.

(d)  Notwithstanding anything to the contrary provided in this
section, the THE corporation may make or guarantee a loan under
terms and conditions with respect to repayment which are more
lenient or more restrictive as to the borrower than provided for by
this section if the board determines that such action on its part is jus-
tified by special circumstances and would be consistent with the gen-
eral objectives of the corporation. In the case of medical students,
consideration shall be given to the period of format internship, resi-
dency training and fellowship, if any, and to financial need in deter-
mining the period of repayment.

Sec. 3. And be it further enacted, That this Act shall take effect
July 1, 1966.

Approved April 29, 1966.