382

LAWS OF MARYLAND

[Ch. 49

The only other changes are in style.

(B) LOAN SECURED BY RESIDENTIAL REAL PROPERTY - 10
PERCENT MAXIMUM.

(1)    A LENDER MAY CHARGE INTEREST AT AN
EFFECTIVE RATE OF SIMPLE INTEREST NOT IN EXCESS OF 10
PERCENT PER ANNUM ON THE UNPAID PRINCIPAL BALANCE OF A
LOAN IF:

(i) THERE IS A WRITTEN AGREEMENT SIGNED BY
THE BORROWER WHICH SETS FORTH THE STATED RATE OF INTEREST
CHARGED BY THE LENDER;

(ii) THE LOAN IS SECURED BY A FIRST MORTGAGE
OR FIRST DEED OF TRUST ON ANY INTEREST IN RESIDENTIAL
REAL PROPERTY;

(lit) THERE IS NO PREPAYMENT PENALTY IN
CONNECTION WITH THE LOAN;

(iv) THE LOAN IS MADE AND THE MORTGAGE OR
DEED OF TRUST IS EXECUTED AFTER MAY 31, 1974, AND BEFORE
JUNE 2, 1976;

(v) THE LOAN IS NOT A RENEWAL OF A LOAN WHICH
HAS MADE BY THE LENDER TO THE BORROWER BEFORE JUNE 1,
1974 AND WHICH WAS SECURED BY A MORTGAGE OR DEED OF TRUST
ON THE SAME PROPERTY; AID

(vi) THE LENDER DID NOT ISSUE [[TO THE
BORROWER]] BEFORE JUNE 1, 1974, A WRITTEN COMMITMENT
AGREEING TO MAKE THE LOAN AT A RATE OF INTEREST OF 8
PERCENT OR LESS.

(2)   FOR PURPOSES OF PARAGRAPH (1) (vi) OF THIS
SUBSECTION:

(i) "WRITTEN COMMITMENT" INCLUDES ANY WRITTEN
COMMITMENT, WRITTEN OFFER TO LEND, OR OTHER WRITTEN
STATEMENT ISSUED BY A LENDER WHICH REASONABLY CAN BE
CONSTRUED TO BE AN OFFER TO MAKE THE LOAN; AND

(ii) A WRITTEN COMMITMENT ISSUED BEFORE APRIL
15, 1974, TO MAKE A LOAN AT AN UNSPECIFIED RATE OF
INTEREST IS A COMMITMENT TO MAKE THE LOAN AT A RATE OF
INTEREST OF 8 PERCENT OR LESS.

REVISOR'S NOTE: This subsection is new language
derived from Art. 49, §§ 13(a) and 14.

In the introductory language to paragraph (1)
of this subsection, the term "effective rate
of simple interest" is substituted for "simple