SPIRO T. AGNEW, Governor                        791

the sections so repealed, generally to revise the laws of Mary-
land relating to interest and usury.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sections 1 to 6, inclusive, of Article 49 of the Annotated Code
of Maryland (1964 Replacement Volume and 1967 Supplement), title
"Interest and Usury," be and they are hereby repealed; and that
new Sections 1 to 11, inclusive, be and they are hereby enacted in
lieu thereof, to stand in the place of the sections so repealed, and
to read as follows:

1.

(a) The term interest as used in this Article means any com-

pensation paid by a borrower to a lender for the use or forbearance
of money, except as otherwise provided in this Article.

(A) THE TERM INTEREST AS USED IN THIS ARTICLE
MEANS ANY COMPENSATION IMPOSED DIRECTLY OR
INDIRECTLY BY A LENDER FOR THE EXTENSION OF
CREDIT FOR THE USE OR FORBEARANCE OF MONEY,
INCLUDING BUT NOT LIMITED TO LOAN FEES, SERVICE
AND CARRYING CHARGES, DISCOUNTS, INTEREST, TIME-
PRICE DIFFERENTIALS, INVESTIGATORS' FEES AND ANY
AMOUNT PAYABLE UNDER A POINT, DISCOUNT, ORIGI-
NATION FEE OR OTHER SYSTEM OF ADDITIONAL SERV-
ICES EXCEPT AS SPECIFICALLY PROVIDED IN THIS
SECTION. IT IS THE INTENTION OF THIS ACT TO PRO-
HIBIT "DISCOUNTING" OR "ADD ON" OR DEVICES OF A
SIMILAR NATURE.

(b) In addition to the interest provided for in this Article, the

following may be paid by a borrower to a lender in connection with
a loan and such payments shall not be interest or be deemed usurious
under any other provision of this Article.

(B) THE FOLLOWING COMPENSATION OR CHARGES
MAY BE PAID IN CONNECTION WITH A LOAN WITHOUT
CONSIDERING IT INTEREST AND SUCH COMPENSATION
OR CHARGES COLLECTED SHALL NOT BE INTEREST OR
DEEMED USURIOUS UNDER ANY OTHER PROVISION OF
THIS ARTICLE.

(1) A fee not to exceed one per cent (1%) of the principal

amount of the loan, provided that the fee shall be collected once at

the inception of the loan contract and shall not be collected upon

any renewal, extension, or refinancing of the loan contract on which

the fee was collected occurring within seven years after the incep-

tion of the loan contract;

(2) (1) A delinquent or late charge of two dollars ($2.00) or one-
twentieth (1/20th) of the total amount of any delinquent or late
periodic installment OF DELINQUENT INTEREST AND PRIN-
CIPAL ONLY, whichever is greater, if so provided, in the loan
contract; the delinquent or late charge shall not be imposed more
than once for the same delinquency or lateness; and the delinquent
or late charge shall not be imposed in connection with a loan for
personal, family, or household purposes until the delinquency has
extended for at least ten (10) FIFTEEN (15) calendar days.