H.B. 679

VETOES

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

[(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.]

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 INTO A MECHANICAL
REPAIR CONTRACT.

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

May 24, 1995

The Honorable Casper R. Taylor, Jr.
Speaker of the House of Delegates
State House
Annapolis MD 21401

Dear Mr. Speaker:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed House Bill 679.

This bill amends the Center Stage Loan of 1994 by changing the specified purposes of the
grant to Center Stage Associates, Inc. to include the acquisition of a building in the

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