2794                                         LAWS OF MARYLAND                     [Ch. 844

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That new Section 108I be and it is hereby added
to Article 11 - Banks and Trust Companies, of the
Annotated Code of Maryland (1968 Replacement Volume and
1973 Supplement) to read as follows:

Article 11 — Banks and Trust Companies
108I.

ANY BANKING INSTITUTION HOLDING A FIRST MORTGAGE ON
RESIDENTIAL PROPERTY THAT IS PARTIALLY INSURED BY A
PRIVATE MORTGAGE INSURANCE CORPORATION MUST ELIMINATE AS
A CHARGE TO THE MORTGAGOR THE INSURANCE PREMIUM PAID TO
THE BANKING INSTITUTION WHEN THE PRINCIPAL ON THE
MORTGAGE HAS BEEN REDUCED TO THE LEVEL AT WHICH THERE IS
NO LONGER ANY OUTSTANDING LIABILITY ON THE PART OF THE
PRIVATE MORTGAGE INSURANCE COMPANY,

SECTION 2. AND BE IT FURTHER ENACTED, That new
Section 161MM—1 be and it is hereby added to Article 23 —
Corporations, of the Annotated Code of Maryland (1973
Replacement Volume and 1973 Supplement) to read as
follows:

Article 23 — Corporations
161MM-1.

ANY ASSOCIATION HOLDING A FIRST MORTGAGE ON
RESIDENTIAL PROPERTY THAT IS PARTIALLY INSURED BY A
PRIVATE MORTGAGE INSURANCE CORPORATION MUST ELIMINATE AS
A CHARGE TO THE MORTGAGOR THE INSURANCE PREMIUM PAID TO
THE ASSOCIATION WHEN THE PRINCIPAL ON THE MORTGAGE HAS
BEEN REDUCED TO THE LEVEL AT WHICH THERE IS NO LONGER ANY
OUTSTANDING LIABILITY ON THE PART OF THE PRIVATE MORTGAGE
INSURANCE COMPANY.

SECTION 3. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1974.

Approved May 31, 1974.

CHAPTER 845
(House Bill 1754)
AN ACT concerning