MARVIN MANDEL, Governor

427

With respect to subsection (a) of this
section, the Commission notes that unlike
other statutory requirements of this sort —
see, e.g., §6 12—106 and 12—503(e) of this
title — this section expressly requires that
the statement be "in the English language."
This might further be compared with the
apparent trend in consumer legislation to
require that disclosures be made in the same
language as was the original solicitation and
transaction. See, e.g.. Federal Trade
Regulation "Cooling-Off Period for
Door—to-Door Sales," 37 F.R. 22933, effective
June 7, 1974; and §14-302 of this article.

In subsection (c) of this section, the words
"without penalty" implicitly required by the
provisions of §12—313 (a)(1), are added for
clarity.

Subsection (d) of this section has been
generally revised to conform to its small loan
counterpart, §12—206(d) of this title.

The only other changes are in style.

With respect to the use of the term "lender"
in substitution for "licensee," see revisor's
note to §12—301(c).

The Commission notes that subsection (c),
unlike its small loan counterpart in
§12—206(c), contains no provisions as to the
required application of partial prepayments.

12-309. LOAN TO BUT CERTAIN GOODS OR SERVICES SUBJECT TO
CERTAIN DEFENSES.

(A) LENDER SUBJECT TO DEFENSES OF BORROWER AGAINST
SELLER.

IF A LENDER MAKES A LOAN FOR THE PURPOSE OF ENABLING
A BORROWER TO BUY GOODS OR SERVICES USED PRIMARILY FOR
PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES, THEN, IN
ADDITION TO ANY OTHER CLAIM OR DEFENSE WHICH THE BORROWER
HAS UNDER THIS SUBTITLE, THE LENDER IS SUBJECT TO THE
CLAIMS AND DEFENSES OF THE BORROWER AGAINST THE SELLER
ARISING FROM THE SALE OF THE GOODS OR SERVICES, IF:

(1) THE LENDER KNOWS THAT THE SELLER ARRANGED
FOR THE EXTENSION OF CREDIT BY THE LENDER; OR

(2) THE LENDER
PARTICIPATED IN THE SALE.

OTHERWISE

KNOWINGLY