HARRY HUGHES, Governor

1577

(i) Expressly disclosed to the borrower;

(ii) Agreed to by both the borrower and the
lender/seller in writing; and

(iii) Required to be postponed one time, upon
becoming due, at the borrower's request, for a period not to
exceed 24 months, provided that the borrower continues to make
the monthly installments provided for in the original loan
agreement, and no new closing costs, processing fees or similar
fees are imposed on the borrower as a result of the extension.
However, the requirement of this subparagraph does not apply if
the loan terms require payment in full within 12 months or less,
except that a borrower may postpone payment of the balloon
payment once for a period not to exceed 6 months and if, during
the extension period, the borrower continues to make payments in
the amount required prior to maturity, the lender may not impose
any charges or fees as a result of the extension period[.]; AND

(3) (I) A COMMERCIAL LOAN OF $50,000 $75,000 OR LESS
MADE UNDER THIS SUBTITLE NEED NOT BE AMORTIZED IN EQUAL OR
SUBSTANTIALLY EQUAL PAYMENTS AND MAY CONTAIN A BALLOON PAYMENT AT
MATURITY IF THE BORROWER IS AUTHORIZED TO POSTPONE THE MATURITY
DATE ONE TIME AND CONTINUE TO MAKE INSTALLMENT PAYMENTS AS
PROVIDED IN THE ORIGINAL LOAN AGREEMENT AND THE POSTPONED
MATURITY DATE DOES NOT EXCEED:

1.  24 MONTHS IF THE ORIGINAL MATURITY
DATE IS MORE THAN 12 MONTHS AFTER THE LOAN IS MADE; OR

2.  6 MONTHS IF THE ORIGINAL MATURITY DATE
IS 12 MONTHS OR LESS AFTER THE LOAN IS MADE.

(II) NO NEW CLOSING COSTS, PROCESSING FEES, OR
SIMILAR FEES MAY BE IMPOSED ON A BORROWER WHO ELECTS TO POSTPONE
THE MATURITY DATE IN ACCORDANCE WITH THIS SUBSECTION.

12-405.

(a)  (1) A lender may collect a loan origination fee not
exceeding the greater of $500 OR 4 PERCENT OF THE NET PROCEEDS OF
A COMMERCIAL LOAN OF $50,000 $75,000 OR LESS MADE UNDER THIS
SUBTITLE OR NOT EXCEEDING $250 or 2 percent of the net proceeds
of [the loan] ANY OTHER LOAN UNDER THIS SUBTITLE. However, [he]
THE LENDER may not collect from the borrower any other
commission, finder's fee, or point for obtaining, procuring, or
placing a loan.

12-407.1.

(b)  The form shall state that the forfeiture of rights
includes: