Marvin Mandel, Governor                         839

ment), title "Sales and Notices," subtitle "Retail Credit Accounts
Law," requiring holders of retail credit accounts to mail customer
statements within a specific period in order to assess service or
finance charges.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 153D(c) of Article 83 of the Annotated Code of Mary-
land (1971 Supplement), title "Sales and Notices," subtitle "Retail
Credit Accounts Law," be and it is hereby repealed and re-enacted,
with amendments, to read as follows:

153D.

(c) When the service charge is assessed on the outstanding
balances from month to month, a service charge which shall not
exceed the following rates computed on the outstanding balances from
month to month:

(1)    On so much of the outstanding balance as does not exceed
five hundred dollars ($500.00), one and one-half percent (1½%) per
month; if the outstanding balance is more than five hundred dollars
($500.00), one percent (1%) per month on the excess over five
hundred dollars ($500.00) of the outstanding balance.

(2)    Such service charge may be computed for all outstanding
balances within a range of not in excess of ten dollars ($10.00)
on the basis of the median amount within such range if as so com-
puted such service charge is applied to all outstanding balances
within such range.

(3)    For the purpose of computing the outstanding balance
subject to the service charge as provided in this section (i) the out-
standing balance on any day shall consist of an amount which shall
not exceed the sum of the total charges to the account less the
amounts paid or credited to the account prior to such day or (ii)
the outstanding balance may be computed by the average daily
balance method.

(4) A service charge for a monthly period shall not be imposed

by a holder of a retail credit account unless the periodic state-

ment for each month is mailed to the buyer at least 15 days before

the end of the next billing cycle A SERVICE CHARGE FOR A
MONTHLY PERIOD MAY NOT BE IMPOSED UNDER A RE-
TAIL CREDIT ACCOUNT AS DESCRIBED IN THIS SUBSEC-
TION UNLESS THE PERIODIC STATEMENT FOR SUCH
MONTH SHALL BE MAILED TO THE BUYER AT LEAST 15
DAYS BEFORE THE END OF THE NEXT BILLING CYCLE.

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

Approved May 5, 1972.

CHAPTER 281
(House Bill 432)

AN ACT to repeal and re-enact, with amendments, Section 64A of
Article 101 of the Annotated Code of Maryland (1971 Supple-