MARVIN MANDEL, Governor

385

"bank" accounts, as distinguished from similar
cash collateral such as savings and loan
accounts. For purposes of conformity, the
term "investment securities" is substituted
for "negotiable stocks [and] bonds"; in this
regard, see Title 8 of this article.

In paragraph (1)(iv) of this subsection, the
requirement that the installments be "equal or
substantially equal" is deleted and
clarification added that unequal or irregular
installments are permitted. This results from
Ch. 785, Acts of 1974, which added a new §5(c)
to Art. 49 to permit "unequal or irregular
installments," if the interest rate does not
exceed that which would provide "the maximum
simple interest yield on the unpaid balance of
the loan as is permitted by [§5(a)]." This
last quoted language is, in effect, the
"effective rate of simple interest" required
by this subsection, as revised. Consequently,
the net result of §5 (c) can be more simply
achieved by deletion of the "equal or
substantially equal" requirement and omission
of §5(c).

The provisions of present §5(a)(1) are deleted
as unnecessary since they merely restate,
albeit in somewhat different language, the
requirements of §12-106(b)(1) (ii).

The only other changes are in style.

(D) LOAN GUARANTEED BY FEDERAL AGENCY - FEDERAL
MAXIMUM.

A LENDER MAY CHARGE INTEREST AT ANY RATE NOT IN
EXCESS OF THAT PERMITTED BY FEDERAL LAW IF THE LOAN IS:

(1)   SECURED BY A MORTGAGE OR DEED OF TRUST;

(2)   INSURED OR GUARANTEED IN FULL OR IN PART
BY THE FEDERAL HOUSING ADMINISTRATION, VETERANS
ADMINISTRATION, OR ANY OTHER FEDERAL AGENCY OR
INSTRUMENTALITY; AND

(3)    MADE IN FULL COMPLIANCE WITH APPLICABLE
FEDERAL LAW.

REVISOR'S NOTE: This subsection is new language
derived without substantive change from Art.
49, §12.

Reference to Federal "rules, regulations or