MARVIN MANDEL, Governor

3963

680.

This bill creates a new subtitle, under the
Commercial Law Article of the Annotated Code of Maryland,
entitled "Equal Credit Opportunity Act," and provides
generally that certain financial and other institutions
and individuals who engage in the extension of credit may
not discriminate on the basis of sex or marital status.

House Bill 1119, which was enacted by the General
Assembly and signed by me on May 15, 1975, accomplishes
the same general purpose as Senate Bill 680. As
originally introduced, House Bill 1119 and Senate Bill
680 were identical in form and each stated that its
purpose was "to require that financial institutions and
other persons and firms engaged in the extension of
credit make that credit equally available to all credit
worthy customers without regard to sex or marital
status." (emphasis added)

Testimony presented to the House and Senate
Committees by the Maryland Bankers Association pointed
out that in a period of tight money and lack of funds
such as the banks experienced in the latter part of last
year, it may be necessary for banks to decline loans to
credit worthy customers for the sole reason that money is
unavailable, and that the language of both Senate Bill
680 and House Bill 1119 might be interpreted to mean that
even in a tight money market loans would have to be made,
perhaps on a pro rata basis, to all credit worthy
customers. Both bills were thus subsequently amended to
provide that such institutions and individuals extending
credit would "not deny credit solely on the basis of sex
or marital status". House Bill 1119 was finally enacted
with this amendment. Senate Bill 680 however, was
re—amended prior to final passage and the original
language was reinstated.

As the provisions of House Bill 1119 are more
equitable and clearer and meet the objectives which both
bills sought to serve, I have decided to veto Senate Bill
680 in favor of House Bill 1119.

Sincerely,

/s/ Marvin Mandel

Governor

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