MARVIN MANDEL, Governor

377

With respect to §12—103(e)(2), a change may
result from the revision of this subsection: a
loan in excess of $5,000 to a business or
commercial organization will be exempt,
whether or not it is made "solely to...carry
on [the] business." The Commission believes,
however, that the quoted qualification, as it
appears in present §7, was intended merely to
apply to a "person...desiring to acquire a
business," and not to any "business or
commercial organization."

(D)   EFFECTIVE FATE OF SIMPLE INTEREST.

"EFFECTIVE RATE OF SIMPLE INTEREST" MEANS THE YIELD
TO MATURITY RATE OF INTEREST RECEIVED OR TO BE RECEIVED
BY A LENDER ON THE FACE AMOUNT OF A LOAN, COMPUTED IN
ACCORDANCE WITH §12-107 OF THIS SUBTITLE.

REVISOR'S NOTE: This subsection is new language
added to clarify the meaning of the term
"effective rate of simple interest" as used in
this subtitle. It combines without
substantive change the definition of that term
contained in B.F.Saul Co. v. West End Park,
250 Md. 707, 717 (1968), and, by
cross—reference, provisions of present Art.
49, §2(b) - now §12-107 of this subtitle -
which relate to the computation of the
interest rate when charges are assessed at the
inception of a loan. See, also, revisor's
note to §12-107.

With respect to the limitation on the charging
of points, see §12—108.

(E)   INTEREST.

"INTEREST" MEANS, EXCEPT AS SPECIFICALLY PROVIDED IN
§12-10 5, ANY COMPENSATION DIRECTLY OR INDIRECTLY IMPOSED
BY A LENDER FOR THE EXTENSION OF CREDIT FOR THE USE OR
FOREBEARANCE OF MONEY, INCLUDING ANY LOAN FEE,
ORIGINATION FEE,        SERVICE        AND          CARRYING         CHARGE,

INVESTIGATOR'S FEE, TIME-PRICE DIFFERENTIAL, AND ANY
AMOUNT PAYABLE AS A DISCOUNT OR POINT OR OTHERWISE
PAYABLE FOR SERVICES.

REVISOR'S NOTE: This subsection presently appears as
Art. 49, §1(a).

The last sentence of that section, which
states         the         intention           to           prohibit

"'discounting' or 'add on'" or similar devices
is deleted as unnecessary in light of the