664                                  LAWS OF MARYLAND                           CH. 439

the date of maturity of the contract as originally scheduled or as
deferred, shall be reduced to six (6) per centum SIMPLE INTEREST
per annum ON THE UNPAID BALANCES.

[(a)] (b) Interest shall not be payable in advance or compounded
and shall be computed on unpaid balances only. The interest which a
licensee may charge and receive for each day on which an unpaid
balance is outstanding shall not exceed 1/360th of the interest
permitted hereunder for one year on such unpaid balance. Each of
the twelve calendar months in the year shall be treated as having
30 days. The 31st day of each month having 31 days, shall be
ignored and omitted, and the necessary number of days shall be
added at the end of February to make 30 days, so that the number
of days on which interest may be charged and collected in any one
month shall always be 30, and in any one year shall always be 360.
[In refinancing a loan in due course of business, the deduction of not
more than one month's interest shall not be considered as compound-
ing of interest.]

(c) In addition to the interest and charges [herein] provided for
[,] by this article, no further or other charge, or amount whatsoever
for any examination, service, brokerage, commission or other thing,
or otherwise, shall be directly or indirectly charged, contracted for
or received [.] , provided however that if part or all of the con-
sideration for a loan contract is the unpaid balance of prior loan made

by the licensee to the same borrower, then the principal amount

payable under such new loan contract may include the balance of the

prior contract which remains after giving the rebate required by

Section 16A (b) hereof, if the prior loan was made under Section

16A. If the prior loan was made under or pursuant to the provi-

sions of this Section, the principal of the new contract of loan may
clude unpaid interest on such prior loan which has accrued within
sixty (60) days before the making of such new contract.

[(b)] (d) If interest, or charges in excess of those permitted by
this article shall be charged, contracted for, or received, the contract
of loan shall be void and the licensee shall have no right to collect,
retain or receive any principal, interest [or], charges or recompense

whatsover [.] except that if a licensee shall, as the result of

clerical error or mistake, contract for, charge or receive greater

interest or charges than permitted by this article, the contract shall
not be void if the excess is returned within fifteen (15) days from the

date such licensee discovers the clerical error or mistake, or is noti-

fied thereof, whichever shall first occur.

(e) No licensee shall induce or knowingly permit any borrower to
split up or divide any loan made under this article for the purpose of
obtaining a greater rate of interest or charges than would otherwise
be permitted by this article. No licensee shall knowingly permit any
husband and wife during coverture, individually or together, or any
endorser, guarantor or surety, to be indebted directly or contingently
under more than one contract of loan at the same time to such
licensee. The term "licensee" as used in this Section shall include
every licensed parent, subsidiary or affiliate of a licensee.

(f) No contract of surety or guarantee shall be enforced by any
licensee unless the contract of loan with the borrower be executed by
the surety or guarantor.