MARVIN MANDEL, Governor                                    375

(3) THE INTEREST ON THE UNPAID BALANCE NOT
EXCEEDING THE PERCENTAGE PER ANNUM ALLOWED BY [[§12-103

OF THE COMMERCIAL LAW ARTICLE]] ARTICLE 49, SECTION 3

ANY GROUND RENT, TAXES, AND OTHER PUBLIC CHARGES.

(C)   APPLICATION OF PAYMENTS.

THE INSTALLMENT PAYMENTS FIRST SHALL BE APPLIED BY
THE VENDOR TO THE PAYMENT OF:

(1)    TAXES, ASSESSMENTS, AND OTHER PUBLIC
CHARGES LEVIED OR ASSESSED AGAINST THE PROPERTY AND PAID
BY THE VENDOR;

(2)   ANY GROUND RENT PAID BY THE VENDOR;

(3)    INSURANCE PREMIUMS ON THE PROPERTY PAID
BY THE VENDOR;

(4)   INTEREST ON UNPAID   BALANCE OWED BY THE
PURCHASER AT A RATE NOT EXCEEDING   THE PERCENTAGE ALLOWED
BY [[§12-103 OF THE COMMERCIAL LAW   ARTICLE]] ARTICLE 49,
SECTION 3 PER ANNUM;

(5)   PRINCIPAL BALANCE OWED BY PURCHASER.

(D)    AMOUNT OF MORTGAGE AND PAYMENTS WHEN LAND IS
SOLD.

NO VENDOR MAY PLACE OR HOLD ANY MORTGAGE ON ANY
PROPERTY SOLD UNDER A LAND INSTALLMENT CONTRACT IN ANY
AMOUNT GREATER THAN THE BALANCE DUE UNDER THE CONTRACT,
NOR MAY ANY MORTGAGE REQUIRE PAYMENTS IN EXCESS OF THE
PERIODIC PAYMENTS REQUIRED UNDER THE CONTRACT.

REVISOR'S NOTE: This section presently appears as
Art. 21, §10-103(a)-(g) of the Code. Present
subsection (a) is divided into two subsections
for organizational purposes. Subsections
(a)(5), (6), (7), and (8) are derived from
present subsections (d), (e), (f), and (g).

New language is added in subsection (c) (4) to
make this subsection consistent with the
provisions of subsection (b)(8).

The present provisions of subsection (d) are
vague in that they provide the purchaser with
no remedy if the vendor fails to comply. If
the vendor holds a mortgage on any property
sold under a land installment contract in a
greater amount, is the mortgage unenforceable?
In addition, subsection (d) fails to specify