MARVIN MANDEL, Governor                                 423

SEX, OR MARITAL STATUS.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 11,
§206, which is retained in that article since
it is apparently applicable to any loans made
under Art. 11, not just those made under its
consumer loan subtitle.

Reference to a loan "under this subtitle" is
deleted as unnecessary in light of the
definition of "loan" in §12—301.

The only other changes are in style.

12-306. INTEREST ON LOAN.

(A)   MAXIMUM INTEREST RATE PERMITTED.

A LENDER MAY CHARGE INTEREST ON A LOAN AT A RATE NOT
EXCEEDING:

(1) 18 PERCENT SIMPLE INTEREST PER ANNUM ON
THE UNPAID PRINCIPAL BALANCE OF THE LOAN; AND

(2) FOR EACH FULL MONTH, A MAXIMUM MONTHLY
INTEREST RATE NOT EXCEEDING ONE-TWELFTH OF THE ANNUAL
INTEREST RATE.

(B)   COMPUTATION OF INTEREST.

(1)    THE LENDER SHALL COMPUTE INTEREST ON THE
ACTUAL UNPAID PRINCIPAL BALANCES OUTSTANDING FROM TIME TO
TIME, AND HE MAY NOT CONTRACT FOR, CHARGE, OR RECEIVE
INTEREST IN ADVANCE OR COMPOUNDED INTEREST.

(2)   FOR THE PURPOSE OF COMPUTING INTEREST:

(i) A FULL MONTH IS THE PERIOD FROM A DATE IN
A MONTH TO THE CORRESPONDING DATE OF THE NEXT MONTH OR,
IF THERE IS NO CORRESPONDING DATE, THE LAST DAY OF THE
NEXT MONTH; AND

(ii) WHEN INTEREST IS COMPUTED FOR A FRACTION
OF A MONTH, A DAY IS CONSIDERED TO BE ONE-THIRTIETH OF A
MONTH.

(C)   PRINCIPAL AMOUNT OF LOAN MAY INCLUDE INTEREST
ON PRIOR LOAN.

IF PART OR ALL OF THE CONSIDERATION FOR A LOAN IS
THE UNPAID PRINCIPAL BALANCE OF A PRIOR LOAN, A LENDER
MAY INCLUDE IN THE PRINCIPAL AMOUNT OF THE LOAN ANY
UNPAID INTEREST WHICH HAS ACCRUED ON THE PRIOR LOAN.