794                                  LAWS OF MARYLAND                           CH. 453

partial payments in the meanwhile AND INTEREST DROP CAL-
CULATIONS ARE MADE AT PERIODS NOT IN EXCESS OF
ONE (1) YEAR, WITHOUT REGARD TO PARTIAL PAYMENTS
IN THE MEANWHILE.

(4) Interest drop calculations are made at periods not in excess

of one (1) year, without regard to partial payments in the mean-

while.

5.

(a)    Interest may be charged on loans not secured by a mort-
gage or deed of trust on real property OR ON LOANS NOT
FULLY SECURED BY NEGOTIABLE STOCKS, BONDS OR
BANK DEPOSITS WHERE THE BORROWER IS REQUIRED TO
REPAY THE INDEBTEDNESS IN EQUAL OR SUBSTANTIALLY
EQUAL MONTHLY, OR OTHER PERIODIC, INSTALLMENTS,
at a rate not in excess of twelve per cent (12%) per annum
simple interest on the unpaid balance of the loan under an
agreement in writing between the lender and the borrower. If inter-
est on loans under this Section is precomputed, (1) the required
written agreement STATEMENT between lender and borrower shall
state the agreed upon and equivalent per cent per annum simple in-
terest rate NOT EXCEEDING A .2% VARIANCE FROM THE
ACTUAL INTEREST RATE which the precomputed charges
cannot exceed, and (2) if, by reason of repayment of the loan prior
to maturity, the agreed upon per cent per annum simple interest
rate is exceeded, such excess shall be refunded to the borrower or
credited on any balance owing by the borrower.

(b)    Any person engaged in the business of lending MAKING
LOANS FOR A CONSIDERATION under this Section, which in-
cludes any person making more than ten FIVE loans hereunder
per year, other than a banking institution, national banking
association, building and loan association, whether federally or state
chartered, credit union or licensee under any Maryland lending
provisions in any other Article of the Code, which is organized
under the laws of this State or otherwise is qualified to do business
in this State, before doing any lending business, shall obtain a
license from the Bank Commissioner to do lending business. The
license required shall be applied for and issued in accordance with
and subject to all of the licensing and examination provisions of
Article 11 relating to Industrial Finance Companies, the same being
Sections 169 through 191 of said Article. THE PROVISIONS OF
THIS SUBSECTION SHALL NOT APPLY WITH RESPECT TO
LOANS MADE BETWEEN RELATIVES, OR BETWEEN AN
EMPLOYER AND HIS EMPLOYEES, OR BETWEEN A LAND-
LORD AND HIS TENANTS. Failure to comply with these

provisions shall subject the lender to the usury penalties provided

for in this Article. ANY PERSON FAILING TO COMPLY WITH

THESE PROVISIONS SHALL BE GUILTY OF A MISDE-
MEANOR, AND UPON CONVICTION THEREOF, SHALL BE
SENTENCED TO PAY A FINE OF NOT MORE THAN
$1,000, OR SUFFER IMPRISONMENT OF NOT MORE THAN
ONE YEAR, OR BOTH, IN THE DISCRETION OF THE
COURT. IN BALTIMORE CITY, THE MUNICIPAL COURT
OF BALTIMORE CITY SHALL HAVE JURISDICTION TO
TRY CASES UNDER THIS SECTION.