MARVIN MANDEL, Governor

441

balance."

In subsection (c)(1) of this section, since,
in fact, a "secondary" mortgage can fee a third
mortgage as well, the more correct reference
to "all prior" liens or encumbrances, is
substituted by amendment for "first" lien or
encumbrance,

The only other changes are in style.

12-405. PERMITTED CHARGES.

(A) ORIGINATION FEE.

A LENDER MAY COLLECT A LOAN ORIGINATION FEE NOT
EXCEEDING 2 PERCENT OF THE NET PROCEEDS OF THE LOAN.
HOWEVER, HE MAY NOT COLLECT FROM THE BORROWER ANY OTHER
COMMISSION, FINDER'S FEE, OR POINT FOR OBTAINING,
PROCURING, OR PLACING A LOAN.

(B) FEES FOR RECORDING AND SATISFYING INSTRUMENT
SECURING LOAN.

A LENDER MAY COLLECT THE FEES PAID TO A PUBLIC
OFFICIAL OR GOVERNMENTAL AGENCY FOR RECORDING OR
SATISFYING THE INSTRUMENT SECURING THE LOAN.

(C) DELINQUENT CHARGES.

(1)    A LENDER MAY COLLECT FROM THE BORROWER A
DELINQUENT OR LATE CHARGE OF THE GREATER OF $2 OR 5
PERCENT OF THE AMOUNT OF ANY DELINQUENT OR LATE PERIODIC
INSTALLMENT, IF:

(i) THE DELINQUENCY HAS CONTINUED FOR AT
LEAST 10 DAYS; AND

(ii) A DELINQUENT OR LATE CHARGE HAS NOT
ALREADY BEEN CHARGED FOR THE SAME DELINQUENCY.

(2)   THE LENDER SHALL DEDUCT THE CHARGE FROM
THE NEXT PAYMENT MADE BY THE BORROWER.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 66, §§
61(b), 62(a) (1) and (3), and the first clause
of §62(b) .

In subsection (b) of this section, the word
"actual," which modifies "fees," is deleted as
unnecessary.

The prohibition against "other charges of