Marvin Mandel, Governor                             9

(6) That the loan was conditioned on the borrower's purchase
of the goods or services from the particular seller, but the licensee's
payment of proceeds of the loan to the seller does not in itself estab-
lish that the loan was so conditioned.

(c) The licensee's liability under this section may not exceed

the amount owing to the licensee with respect to the sale at the time

the licensee has notice of a claim or defense of the buyer against the
seller. If two or more loans, other than pursuant to a revolving loan
account, are consolidated, payments received after the consolidation

are deemed, for the purpose of determining the amount owing the

licensee with respect to the sale, to have been first applied to the
payment of the loans first made; if the loans consolidated arose from
sales made on the same day, payments are deemed to have been first
applied to the smallest loan. Payments received upon a revolving
loan account are deemed, for the purpose of determining the amount
owing the licensee with respect to the sale, to have been first applied

to the payment of credit service charges in the order of their entry

to the account and then to the payment of loans in the order in which
the entries to the account showing the loans were made.

(d) The defenses made available to a borrower-buyer by this
section shall be in addition to, and not in lieu of any defenses made
available to a borrower-buyer under subtitle "Retail Installment
Sales" found elsewhere in this Article.

Sec. 6 3. And be it further enacted, That this Act shall take effect
July 1, 1971.

Vetoed by the Governor—May 28, 1971.

Passed Over Governor's Veto—January 12, 1972.

CHAPTER 2
(House Bill 1128 of 1971)

AN ACT to add new Section 18B(e) to Article 78B of the Annotated
Code of Maryland (1969 Replacement Volume), title "Racing Com-
mission," subtitle "In General," to follow immediately after Sec-
tion 18B(d) thereof, providing that the Racing Commission may
award a license and dates to a joint venture consisting of the Agri-
cultural and Mechanical Association of Washington County and
the Southern Maryland Agricultural Fair Association of Prince
George's County under certain circumstances and on certain con-
ditions; AND MAKING PROVISION FOR CERTAIN PAY-
MENTS FOLLOWING AND AS A RESULT OF THE LICENSE
AND DATES SO AWARDED.

Section 1. Be it enacted by the General Assembly of Maryland,
That new Section 18B(e) be and it is hereby added to Article 78B
of the Annotated Code of Maryland (1969 Replacement Volume), title
"Racing Commission," subtitle "In General," to follow immediately
after Section 18B (d) thereof, and to read as follows: