MARVIN MANDEL, Governor

389

EXPENSE, TAX, OR GOVERNMENTAL CHARGE; AND

(3) CHARGES FOR THE PAYMENT OF ANY PREMIUM
AND COST FOR INSURING:

(i) THE LENDER AGAINST LOSS OR LIABILITY ON
OR IN CONNECTION WITH THE LOAN; OR

(ii) THE LIFE OR HEALTH OF THE BORROWER.

REVISOR'S NOTE: This subsection is new language
derived without substantive change from Art.
49, §1(b) (6).

The qualification "if not retained by him" is
added to the general introductory language of
this subsection to conform to the
interpretation given this provision in B.F.
Saul Co. v. West End Park, 250 Md. 707, 723 et
seq. (1968): "...[T]he determining factor, in
the event of any ambiguity as to whether or
not a fee or charge should be included as
interest, is whether such charge is retained
by the lender and, if so, it should be treated
as interest." See, also, Equitable v.
Insurance Commissioner, 251 Md. 143 (1968).

The present statement that "all other charges,
other than those enumerated below, will be
deemed interest" is deleted as misleading
since, as noted by the Court of Appeals in
B.F. Saul Co. v. West End Park, 250 Md. 707,
723 (1968), it must be construed,
notwithstanding its express language, as
referring to all charges other than those
enumerated in the whole of §1(b). In any
event, the phrase is unnecessary in light of
the broad definition of "interest" contained
in §12—101 of this subtitle.

12-106. STATEMENTS TO BE FURNISHED BY LENDER.

(A) EXCEPTIONS.

THIS SECTION DOES NOT APPLY TO ANY LOAN:

(1)   DESCRIBED IN §12-103(E) OF THIS SUBTITLE;

OR

(2)   MADE UNDER THE MARYLAND HIGHER EDUCATION
LOAN PROGRAM ACT.

(B) STATEMENT BEFORE LOAN.