1570                                       LAWS OF MARYLAND                                 Ch. 427

ALLOWABLE INCOME LEVELS IN AMOUNTS AT LEAST EQUAL TO THE
FOLLOWING:

(1)
(2)
(3)
(4)
(5)

FAMILY OF ONE -      $2,200   $2,300 PER YEAR

FAMILY OF TWO -      $2,900   $2,800 PER YEAR

FAMILY OF THREE -      3,400    $3,300 PER YEAR

FAMILY OF FOUR - $3,900   $3,800 PER YEAR

FAMILY OF FIVE OR MORE -

A PROPORTIONAL

INCREASE OF $500 PER YEAR FOR EACH ADDITIONAL FAMILY MEMBER.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1978.

Approved May 16, 1978.

AN ACT concerning

CHAPTER 428
(Senate Bill 85)

Escrow Accounts

FOR the purpose of providing that escrow account funds may

     be used only for the purposes for which they are

collected and they are held in trust for the borrower.

not be used for certain purposes with certain

exceptions.

BY adding to

Article - Commercial Law
Section 12-109.1
Annotated Code of Maryland
(1975 Volume and 1977 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article — Commercial Law

12-109.1.

FUNDS IN ANY ESCROW ACCOUNT, AS DEFINED IN § 12-109 OF

THIS SUBTITLE, MAY BE USED ONLY FOR THE PURPOSES FOR WHICH

THEY ARE COLLECTED, AND THESE FUNDS ARE HELD IN TRUST FOR

THE BORROWER NOT BE ALLOWED TO REDUCE THE PRINCIPAL,

INTEREST, OR OTHER LOAN CHARGES OF THE LOAN EXCEPT UPON