384

LAWS OF MARYLAND

[Ch. 49

(iv) THE BORROWER IS REQUIRED TO REPAY THE
LOAN IN PERIODIC INSTALLMENTS, WHICH MAY BE REGULAR,
IRREGULAR, EQUAL OR UNEQUAL [[PERIODIC]] INSTALLMENTS.

(2)   IF INTEREST ON A LOAN MADE UNDER THIS
SUBSECTION IS PRECOMPUTED, AND IF THE EFFECTIVE RATE OF
SIMPLE INTEREST REQUIRED TO BE DISCLOSED UNDER §12-106 OF
THIS SUBTITLE IS EXCEEDED BY REASON OF A PREPAYMENT OF
THE LOAN, THE LENDER SHALL REFUND THE EXCESS TO THE
BORROWER OR CREDIT IT TO ANY UNPAID PRINCIPAL BALANCE
OWED BY HIM.

(3)    A LENDER WHO MAKES A LOAN UNDER THIS
SUBSECTION IS SUBJECT TO THE LICENSING PROVISIONS OF
ARTICLE 49, §5(B) OF THE CODE.

REVISOR'S NOTE: This subsection is new language
derived from Art. 19, §5(a) and (c). Art.
49, §5(b) is retained in Art. 49 for future
inclusion in the Business Regulation Article.

In the introductory language to paragraph (1)
of this subsection, the term "effective rate
of simple interest" is substituted for "simple
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 provisions of that subsection which
expressly requires that the written agreement
for an 8 percent loan set forth the "stated
rate of interest"; in this regard, see
revisor's note to subsection (b) of this
section.

In paragraph (1)(ii) of this subsection, the
reference to a "first" Mortgage or deed of
trust is added to sore clearly distinguish
between loans made under this subsection and
those made under the Secondary Mortgage Loan
Law, the credit regulations of which are
contained in Subtitle 4 of this title. This
addition is in accord with 54 Op. Att'y Gen.
22 (1969), which held that the word
"mortgage," as used in present Art. 49, §5(a),
means a "first mortgage" and not any junior
lien.

By amendment to paragraph (1)(iii) of this
subsection, the tern "savings accounts" is
substituted for "bank deposits" to avoid the
unintentional limitation of this paragraph to