conspicuous written statement, in print not smaller than 10 point type, specifying
that if private mortgage insurance is required to be purchased as a condition for
making the loan, the borrower may be eligible to request that under appropriate
circumstances the private mortgage insurance be canceled. The statement shall be
signed by the borrower and a copy shall be furnished to the borrower.]

(2) PARAGRAPH (1) OF THIS SUBSECTION DOES NOT APPLY TO ANY LOAN
SUBJECT TO THE DISCLOSURE PROVISIONS OF THE FEDERAL HOMEOWNERS
PROTECTION ACT OF 1998, IF THE LENDER COMPLIES AT LOAN CONSUMMATION
WITH THE DISCLOSURE REQUIREMENTS OF THE ACT.

Article - Financial Institutions

[5-508.

If a banking institution holds a first mortgage on residential property and a
private mortgage insurance corporation partially insures the mortgage, the banking
institution shall eliminate all charges to the mortgagor for mortgage insurance
premiums when the mortgage is reduced to the level at which the [[insurance
corporation has no outstanding liability.] FEDERAL HOMEOWNERS PROTECTION ACT
OF 1998 REQUIRES TERMINATION OF THE PRIVATE MORTGAGE INSURANCE
INSURING THE MORTGAGE. FEDERAL HOMEOWNERS PROTECTION ACT OF 1998
REQUIRES TERMINATION OF THE PRIVATE MORTGAGE INSURANCE INSURING THE
MORTGAGE.

[9-903.

If a savings and loan association holds a first mortgage on residential property,
and the mortgage is partially insured by a private mortgage insurance company, the
association shall eliminate all charges to the mortgagor for mortgage insurance
premiums when the mortgage is reduced to the level at which the [[insurance
company is no longer liable.] FEDERAL HOMEOWNERS PROTECTION ACT OF 1998
REQUIRES TERMINATION OF THE PRIVATE MORTGAGE INSURANCE INSURING THE
MORTGAGE. FEDERAL HOMEOWNERS PROTECTION ACT OF 1998 REQUIRES
TERMINATION OF THE PRIVATE MORTGAGE INSURANCE INSURING THE MORTGAGE.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 29, 1999.

May 27, 1999

The Honorable Thomas V. Mike Miller, Jr.
President of the Senate
State House
Annapolis MD 21401

Dear Mr. President:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed Senate Bill 229.

This bill creates an income tax subtraction modification for income related to