402

LAWS OF MARYLAND

[Ch. 49

REVISOR'S NOTE: This section is new language derived
from the first paragraph of Art. 58A, §15. It
is generally patterned after its counterpart
provision relating to consumer loans contained
in present Art. 11, §193 - now §12-304(a) of
this title.

The reference to "radio or television" is
deleted as unnecessary and the phrase
"directly or indirectly" is substituted for
"or cause to be printed ... or broadcast,"

The only other changes are in style.

The penalty provisions of present §15 are now
contained in §12—213 of this subtitle,

With respect to the use of the term "lender"
in substitution for "licensee," see revisor's
note to §12-201(b).

The Commission notes that unlike the consumer
loan law provisions which appear in §12—304(b)
and (c) of this title, Art. 58A — and,
therefore, this subtitle — contains no express
provisions relating to authority of the
Commissioner of Consumer Credit over
advertising by licensees.

For provisions generally relating to
advertising and other representations made in
connection with the extension of "consumer
credit," see Title 13 of this article, the
Maryland Consumer Protection Act.

12-205. INTEREST ON LOAN.

(A) MAXIMUM INTEREST RATE PERMITTED.

(1)   EXCEPT AS PROVIDED IN PARAGRAPHS (2) AND
(3) OF THIS SUBSECTION, A LENDER MAY CHARGE INTEREST ON A
LOAN AT A RATE NOT EXCEEDING:

(i) 3 PERCENT INTEREST PER MONTH ON THAT PART
OF THE UNPAID PRINCIPAL BALANCE NOT EXCEEDING $300; AND

(ii) 2 PERCENT INTEREST PER MONTH ON THAT
PART OF THE UNPAID PRINCIPAL BALANCE EXCEEDING $300.

(2)  IF ANY PRINCIPAL BALANCE REMAINS UNPAID
SIX MONTHS AFTER THE LOAN MATURES AS ORIGINALLY SCHEDULED
OR DEFERRED, THE LENDER MAY NOT CONTRACT FOR, CHARGE, OR
RECEIVE INTEREST AT A RATE EXCEEDING 6 PERCENT SIMPLE
INTEREST PER ANNUM ON THE ACTUAL UNPAID PRINCIPAL