388

LAWS OF MARYLAND

[Ch. 49

PREPAYMENT OF THE UNPAID PRINCIPAL BALANCE OF THE LOAN,
EXCEPT THAT IF THE LOAN IS SECURED BY A HOME, BY A
COMBINATION OF HOME AND BUSINESS PROPERTY, OF BY
AGRICULTURAL PROPERTY, OR IF THE LOAN IS A COMMERCIAL
LOAN NOT IN EXCESS OF $5,000, THE CHARGE OR PENALTY:

(i) MAY BE IMPOSED ONLY ON PREPAYMENTS MADE
WITHIN THREE YEARS FROM THE DATE THE LOAN IS MADE; AND

(ii) [[THE CHARGE OR PENALTY]] MAY NOT EXCEED
AN AMOUNT EQUAL TO TWO MONTHS' ADVANCE INTEREST ON THE
AGGREGATE AMOUNT OF ALL PREPAYMENTS MADE IN ANY 12-MONTH
PERIOD IN EXCESS OF ONE-THIRD OF THE AMOUNT OF THE
ORIGINAL LOAN.

REVISOR'S NOTE: This subsection is new language
derived without substantive change from Art.
49, §1(b) (1), (2), (4), and (5).

With respect to paragraph (1) of this
subsection, "commercial loan" is defined in
§12-101 of this subtitle.

In paragraph (2) of this subsection, the
technically more correct term "investment
securities" is substituted for "securities,"
In this regard, see Title 8 of this article.

In paragraph (4) of this subsection, the
phrase "not in excess of $5,000" is
substituted for "under $5,000." Sec. 12-103
(e) generally exempts commercial loans "in
excess of $5,000" from the provisions of this
subtitle; a change, therefore, is required
here to avoid an unintended gap with respect
to a loan which is exactly $5,000. Reference
to a charge provided for in the "original
contract" is deleted as unnecessary in light
of the introductory language of this
subsection; and the anomalous reference to
"original mortgage" is corrected to refer to
"original loan."

(C) ACTUAL EXPENSES.

THE FOLLOWING CHARGES, IF ACTUAL EXPENSES OF THE
LENDER, ALSO MAY BE COLLECTED AND, IF NOT RETAINED BY
HIM, ABE NOT INTEREST UNDER THIS SUBTITLE:

(1) CHARGES BY THE LENDER'S ATTORNEY FOR
SERVICE RENDERED IN CONNECTION WITH THE PREPARATION,
CLOSING, OR DISBURSEMENT OF THE LOAN;

(2) CHARGES FOR THE PAYMENT OF ANY PROPERTY