MARVIN MANDEL, Governor

391

REVISOR'S NOTE: Subsections (a) and (b) of this
section presently appear in Art. 49, §10,
except for the penalty provision of present
§10(c), which now appears in §12-114 of this
subtitle.

Subsection (c) of this section presently
appears in Art. 49, §10A.

In subsection (a) of this section, the
reference to §12-103(e) is derived from B.F.
Saul Co. v. West End Park. 250 Md. 707, 721
(1968), which held that "since commercial
loans in excess of $5,000 are exempted from
the usury regulations in §7 there would be
little or no practical benefit derived from
subjecting such loans to the disclosure
provisions of §10, and we do not think the
legislature intended such an exercise in
futility." This same rationale would, of
course, apply to corporate loans where there
is no defense of usury. See, also, 56 Op.
Att'y Gen. 288 (1971). Although the Saul case
and the cited Opinion of the Attorney General
deal with present §10 of Art. 49, the rulings
would be equally applicable to present §10A,
included here as subsection (c) of this
section.

In subsection (b)(1)(i) of this section, the
present second reference to "stated in
dollars" is deleted as unnecessarily

repetitious.

The Federal Truth—in—Lending provisions,
referred to in subsection (b)(2), are
presently found in 15 U.S.C. §1601 et seg.

The Maryland Higher Education Program Act,
referred to in subsection (a), is presently
found in Art. 43A of the Code.

The only other changes are in style.

12-10 7. COMPUTING INTEREST RATE IF CHARGE ASSESSED AT
INCEPTION OF LOAN.

IF A CHARGE OR FEE CONSIDERED INTEREST UNDER THIS
SUBTITLE IS CHARGED AT OR BEFORE THE INCEPTION OF A LOAN
CONTRACT, THE EFFECTIVE RATE OF SIMPLE INTEREST PERMITTED
TO BE CHARGED BY §§ 12-102 AND 12-103 OF THIS SUBTITLE,
AND REQUIRED TO BE DISCLOSED BY §12-106 OF THIS SUBTITLE
SHALL BE DETERMINED IN THE SAME MANNER AS IF THE FEE OR
CHARGE HAD NOT BEEN CHARGED, EXCEPT THAT THE PRINCIPAL OF