WILLIAM DONALD SCHAEFER, Governor

take certain action within a certain period of time; requiring the payment of
interest under certain circumstances; providing that the provisions of this Act
shall have prospective effect only; and generally relating to fees and charges in
open end credit plans secured by certain deposits.

BY repealing and reenacting, with amendments,
Article - Commercial Law
Section 12-905
Annotated Code of Maryland
(1983 Replacement Volume and 1989 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Commercial Law

12-905.

(a) With respect to an unsecured open end credit plan, fees or charges may not
be imposed on a consumer borrower in addition to interest or finance charges as
permitted by this subtitle, except as follows:

(1) If the plan is offered by a seller of goods or services, or both, and may
be used only for the purchase or lease of the seller's goods and services, the seller may
charge one of the following fees:

(i) An annual charge in any amount the agreement provides for the
privileges made available to the consumer borrower under the plan;

(ii) A transaction charge or charges in such amount or amounts as
the agreement may provide for each separate purchase under the plan; or

(iii) A minimum charge for each scheduled billing period under the
plan during any portion of which there is an outstanding unpaid indebtedness under the
plan.

(2) If the plan is offered by any other credit grantor, the credit grantor
may impose any or all of the following fees:

(i) An annual charge in any amount the agreement provides for the
privileges made available to the consumer borrower under the plan;

(ii) A transaction charge or charges in such amount or amounts as
the agreement may provide for each separate purchase or loan under the plan; and

(iii) A minimum charge for each scheduled billing period under the
plan during any portion of which there is an outstanding unpaid indebtedness under the
plan.

(b) [With] EXCEPT AS PROVIDED IN SUBSECTION (F) OF THIS
SECTION, WITH respect to a secured open end credit plan, fees or charges may not be

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