MARVIN MANDEL, Governor

387

PERIODS NOT IN EXCESS OF ONE YEAR, WITHOUT REGARD TO
INTERIM PARTIAL PAYMENTS.

REVISOR'S NOTE: This section presently appears as
Art. 49, §4.

The only changes are in style.

12-105. CHARGES NOT CONSIDERED INTEREST.

(A)       GOVERNMENTAL CHARGES.

FEES AND CHARGES COLLECTED AT THE DIRECTION OF AND
ACTUALLY PAID TO A GOVERNMENT OR GOVERNMENTAL AGENCY MAY
BE COLLECTED AND ARE NOT INTEREST UNDER THIS SUBTITLE.

REVISOR'S NOTE: This subsection is new language
derived without substantive change from Art.
49, §1(b)(3).

(B)   SERVICE, LATE, AND PREPAYMENT CHARGES.

IF THE LOAN CONTRACT PROVIDES FOR THEM, THE
FOLLOWING FEES AND CHARGES ALSO MAY BE COLLECTED AND ARE
NOT INTEREST UNDER THIS SUBTITLE [[IF THE LOAN CONTRACT
SO PROVIDES]]:

(1)   A SERVICE CHARGE FOR INVESTIGATION AND
THE CONTINUED SERVICING OF COLLATERAL FOR A COMMERCIAL
LOAN SECURED BY INVENTORY OR ACCOUNTS RECEIVABLE;

(2)   A SERVICE CHARGE MADE BY A BROKER OR
DEALER DEALING IN INVESTMENT SECURITIES IF:

(i) MONEY IS ADVANCED ON THE SECURITY OF
PLEDGED INVESTMENT SECURITIES; AND

(ii) SERVICES ARE RENDERED IN THE COLLECTION,
CREDITING, AND DISBURSEMENT OF INCOME ON THE INVESTMENT
SECURITIES AND IN THE FURNISHING OF INCOME TAX AND OTHER
INFORMATION IN CONNECTION WITH THAT INCOME;

(3)    A DELINQUENT OR LATE CHARGE OF THE
GREATER OF $2 OR 5 PERCENT OF THE TOTAL AMOUNT OF ANY
DELINQUENT OR LATE PERIODIC INSTALLMENT OF PRINCIPAL AND
INTEREST, IF:

(i) THE DELINQUENCY HAS CONTINUED FOR AT
LEAST 15 CALENDAR DAYS; AND

(ii) A DELINQUENT OR LATE CHARGE HAS NOT
ALREADY BEEN CHARGED FOR THE SAME DELINQUENCY; AND

(4)    A PREPAYMENT CHARGE OR PENALTY ON A