2362

LAWS OF MARYLAND

Ch. 691

banking institutions in the State. rates and finance
charges that may be charged by lenders in this State;
and generally relating to maximum permissible interest
rates and finance charges on certain loans.

BY adding to

Article - Financial Institutions

Section 5-511
Annotated Code of Maryland

(As enacted by Chapter ____ of the Acts

of the General Assembly of 1980)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland

(as enacted by Chapter ___ of the Acts of the General

Assembly of 1980) be repealed, amended, or enacted to read
as follows:

Article - Financial Institutions

5-511.

NOTWITHSTANDING ANY INTEREST OR FINANCE CHARGE

LIMITATIONS IMPOSED BY THE PROVISIONS OF §§ 12-103(A),
12-103(C), AND 12-506(A) OF THE COMMERCIAL LAW ARTICLE, A
BANKING INSTITUTION, OR A NATIONAL BANKING ASSOCIATION THAT
HAS ITS PRINCIPAL BANKING OFFICE IN THIS STATE, MAY CHARGE
INTEREST OR FINANCE CHARGES AT A RATE NOT IN EXCESS OF 18
PERCENT WHEN EXTENDING CREDIT UNDER THE ABOVE SECTIONS. ALL
OTHER PROVISIONS OF THESE SECTIONS, INCLUDING BUT NOT
LIMITED TO DISCLOSURE AND FORFEITURE OF INTEREST OR FINANCE
CHARGES, APPLY TO THE BANKING INSTITUTION.

BY repealing and reenacting, with amendments

Article - Commercial Law

Section 12-103(a) and (c)(1), and 12-506(a)

Annotated Code of Maryland

(1975 Volume and 1979 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be repealed, amended, or enacted to read as follows: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

12-103.

(a) Except as provided in subsections (b), (c), (d),
and (e) of this section, (1) a lender may charge interest at
an effective rate of simple interest not in excess of 8
percent per [annum] YEAR on the unpaid principal balance of
a loan if there is a written agreement signed by the
borrower which sets forth the stated rate of interest
charged by the lender.