MARVIN MANDEL, Governor

2765

COMMERCIAL INVESTMENT IN EXCESS OF $5,000.

12-404.

(c) Amortization of Loan.

A loan shall be amortized in equal or substantially
equal monthly installments without a balloon payment at
maturity, except that:

(1)     Payment on the loan may be reduced or
suspended until [[the first lien or encumbrance is]] all
prior liens or encumbrances are wholly or partially
satisfied; and

(2)    [A balloon payment at maturity may be
required if the loan is transacted solely for the purpose
of acquiring or carrying on a business or commercial
investment.] A balloon payment at maturity may be
required if the loan is transacted solely for the purpose
of acquiring or carrying on a business or commercial
investment AND IS MORE THAN $5,000. (3) A PERSON WHO
TAKES BACK A DEFERRED PURCHASE MONEY SECONDARY MORTGAGE
TO AID IN THE SALE OF HIS OWN RESIDENCE [[OF ANY
RESIDENTIAL DWELLING BUILT BY HIM]] SHALL BE PERMITTED TO
CREATE A BALLOON PAYMENT AT MATURITY OF THE DEFERRED
PURCHASE MONEY MORTGAGE IF SUCH BALLOON PAYMENT IS:

(I)    EXPRESSLY DISCLOSED TO THE BORROWER, AND

(II)   AGREED TO BY BOTH THE BORROWER AND THE
LENDER/SELLER IN WRITING.

SECTION 3. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1975.

Approved May 15, 1975.

CHAPTER 575
(Senate Bill 305)

AN ACT concerning

Veterans' Home Commission

FOR the purpose of creating a Veterans' Home Commission
to provide a home for veterans in the State of
Maryland; setting its purposes and terms of