MARVIN MANDEL, Governor

379

setting forth a broad, standardized definition
of the word "person" as used in this article.
It is a synthesis of the U.C.C. definitions of
"person" and "organization" contained in
§1-201 (28) and (30) of this article, except
that the reference to "government or
governmental subdivision or agency" is not
included. This definition is in no way
intended to change the existing law, merely to
clarify it.

(H) POINT.

"POINT" MEANS A FEE, PREMIUM, BONUS, LOAN
ORIGINATION FEE, SERVICE CHARGE, OR ANY OTHER CHARGE
EQUAL TO 1 PERCENT OF THE PRINCIPAL AMOUNT OF A LOAN
WHICH IS CHARGED BY THE LENDER AT OR BEFORE THE TIME THE
LOAN IS MADE AS ADDITIONAL COMPENSATION FOR THE LOAN.

REVISOR'S NOTE: Thin subsection is new language
added to clarify the meaning of the term
"point" 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, 713 (1968), and
provisions of present Art. 49, §2(a) — now
§12—108 of this subtitle — which relate to the
limitation on the charging of points. See the
revisor's note to §12—108. The words "at or
before" are used in this subsection for
purposes of clarity.

(I) SIMPLE INTEREST.

"SIMPLE INTEREST" MEANS INTEREST CHARGED ON THE
PRINCIPAL AMOUNT LOANED TO THE BORROWER.

REVISOR'S NOTE: This subsection is new language
added to clarify the meaning of the term
"staple interest" as used in this subtitle.
It is derived without substantive change from
the definition of that term contained in B.F.
Saul Co. v. West End Park, 250 Md. 707, 717
(1968) .

(J) STATED RATE OF INTEREST.

"STATED RATE OF INTEREST" MEANS THE ANNUAL RATE OF
INTEREST STATED IN PERCENTAGE WHICH APPEARS ON THE FACE
OF THE [[INSTRUMENT WHICH EVIDENCES THE LOAN]] BOND,
DRAFT, MORTGAGE, DEED OF TRUST, SECURITY AGREEMENT,
PROMISSORY NOTE, OR OTHER INSTRUMENT WHICH EVIDENCES THE
INDEBTEDNESS.