MARVIN MANDEL, Governor

383

interest"; in this regard, see the revisor's
note to §12-102.

Paragraph (1)(i) of this subsection has been
revised to conform generally to the language
of subsection (a) of this section, as well as
the provision of that subsection which
expressly requires that the written agreement
for an 8 percent loan set forth the "stated
rate of interest," Expressing the same
requirement here is consistent with the
legislative mandate that there also be a
written agreement for loans in excess of 8
percent. This conclusion is in accord with
the principle enunciated in B. F. Saul Co. v.
West End Park. 250 Md. 707 (1968), and the
conclusion reached in 53 Op. Att'y Gen. 58, 68
(1968), which held that the interest rate on a
loan made under Art. 49, §5(a) — now
subsection (c) of this section — must be
disclosed in the "written agreement" required
by that section, notwithstanding the absence
of express language to that effect. See,
also, the reviser's note to subsection (a) of
this section.

In paragraph (1) (iv), for purposes of clarity,
the requirement that the loan be made "before
June 2, 1976" is substituted for present
§13(a)(5) which provides that the section
"does not apply after" June 1, 1976.

In paragraph (2)(ii), the reference to a
"specified" rate is deleted as unnecessary.

The only other changes are in style.

(C)
MAXIMUM.

UNSECURED INSTALLMENT LOAN - 12 PERCENT

(1) A LENDER MAY CHARGE INTEREST AT AN
EFFECTIVE RATE OF SIMPLE INTEREST NOT IN EXCESS OF 12
PERCENT PER ANNUM ON THE UNPAID PRINCIPAL 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 NOT SECURED BY A FIRST
MORTGAGE OR FIRST DEED OF TRUST ON REAL PROPERTY;

(iii) THE LOAN IS NOT FULLY SECURED BY
INVESTMENT SECURITIES OR [[BANK DEPOSITS]] SAVINGS
ACCOUNTS; and