836                               Laws of Maryland                      [Ch. 278

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1972.

Approved May 5, 1972.

CHAPTER 277
(House Bill 337)

AN ACT to repeal and re-enact, with amendments, Section 3 of
Article 49 of the Annotated Code of Maryland (1968 Replacement
Volume and 1971 Supplement), title "Interest and Usury," to
delete the requirement of a separate signed instrument in writ-
ing between lender and borrower when the interest rate on a
contract of indebtedness exceeds six percent (6%) simple interest
per annum on the unpaid balance, and generally relating to inter-
est charges on a contract of indebtedness.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 3 of Article 49 of the Annotated Code of Maryland
(1968 Replacement Volume and 1971 Supplement), title "Interest
and Usury," be and it is hereby repealed and re-enacted, with amend-
ments, to read as follows:

3.

Interest may be charged not in excess of the rate of six percent
(6%) per annum simple interest on the unpaid balance, except that
interest may be charged at the rate not in excess of eight percent
(8%) per annum simple interest on the unpaid balance under an
agreement in writing between the lender and the borrower. This
agreement must set out the annual rate of interest which is charged,
stated in percentage [and be a separate instrument from the con-
tract of indebtedness]. The agreement must be signed prior to the
execution of the contract of indebtedness].

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1972.

Approved May 5, 1972.

CHAPTER 278
(House Bill 344)

AN ACT to repeal and re-enact, with amendments, Section 292 of
Article 27 of the Annotated Code of Maryland (1971 Replace-
ment Volume and 1971 Supplement), title AND SUBTITLE
"Crimes and Punishments," subtitle SUBHEADING "Health-
Controlled Dangerous Substances," to provide for the expunging
of criminal arrest records relating to controlled dangerous sub-
stances under certain conditions, AND TO PROVIDE FOR THE