PARRIS N. GLENDENING, Governor

Ch. 197

(2) (I) This section does not prohibit a seller from financing the cost to
the buyer of a mechanical repair contract sold in connection with a motor vehicle,
provided that the cost of the mechanical repair contract is separately itemized in the
financing agreement.

(II) A SELLER MAY FINANCE THE COST OF A MECHANICAL REPAIR
CONTRACT SOLD IN CONNECTION WITH A MOTOR VEHICLE WHETHER OR NOT THE
MOTOR VEHICLE IS COVERED BY AN ORIGINAL MANUFACTURER'S WARRANTY.

[(3) For purposes of this section, a mechanical repair contract may be sold
only for a vehicle which is covered by an original manufacturer's warranty.]

(3) A SELLER MAY NOT REQUIRE A BUYER OF A MOTOR VEHICLE, AS A
CONDITION OF RECEIVING A LOAN, TO ENTER A MECHANICAL REPAIR CONTRACT.

12-1012.

(a) (1) This subtitle does not prohibit a credit grantor from including in the loan
amount the cost to the borrower of a mechanical repair contract SOLD IN CONNECTION
WITH A MOTOR VEHICLE, provided that the cost of the mechanical repair contract is
separately itemized in the financing agreement. [For purposes of this section, a
mechanical repair contract for a motor vehicle may be sold only for a vehicle which is
covered by an original manufacturer's warranty.]

(2) THE COST OF A MECHANICAL REPAIR CONTRACT SOLD IN
CONNECTION WITH A MOTOR VEHICLE MAY BE INCLUDED IN THE LOAN AMOUNT
WHETHER OR NOT THE MOTOR VEHICLE IS COVERED BY AN ORIGINAL
MANUFACTURER'S WARRANTY.

(3) A CREDIT GRANTOR MAY NOT REQUIRE A BUYER OF A MOTOR VEHICLE,
AS A CONDITION OF RECEIVING A LOAN, TO ENTER A MECHANICAL REPAIR CONTRACT.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1995.

Approved May 9, 1995.

CHAPTER 197
(Senate Bill 665)

AN ACT concerning

Creation of a State Debt - Baltimore City - Grace Outreach Center

FOR the purpose of authorizing the creation of a State Debt not to exceed $2,000,000
$700,000, the proceeds to be used as a grant to Grace Outreach Development
Corporation for certain development or improvement purposes; providing for
disbursement of the loan proceeds, subject to a requirement that the grantee
provide and expend a matching fund; providing that no proceeds of a loan or any
matching funds may be used for religious purposes; and providing generally for the

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