MARVIN MANDEL, Governor

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(2) THE INTEREST WHICH WILL BE CHARGED IF THE
LOAN IS CARRIED TO MATURITY.

(B)   STATEMENT TO BORROWER.

AT THE TIME A LOAN IS MADE, THE LENDER SHALL DELIVER
TO THE BORROWER A STATEMENT IN A FORM PRESCRIBED BY THE
COMMISSIONER WHICH:

(1)          CLEARLY SETS FORTH EACH LIMITATION

IMPOSED ON THE      LENDER AID EACH RIGHT GIVEN TO THE

BORROWER UNDER      Â§Â§ 12-404, 12-405, AND 12-410 OF THIS
SUBTITLE;

(2)   CLEARLY STATES THAT THE BORROWER IS UNDER
NO OBLIGATION TO DEAL WITH THE LENDER;

(3)   CONTAINS A SCHEDULE WHICH SHOWS THE COST
OF THE LOAN; AND

(4)   SHOWS THE ANNUAL EFFECTIVE RATE OF SIMPLE
INTEREST, AS DEFINED IN SUBTITLE 1 OF THIS TITLE, WHICH
IS CHARGED, STATED IN PERCENTAGE CALCULATED TO THE
NEAREST 1 PERCENT.

(C)   RECEIPT FOR PAYMENTS.

(1)    EXCEPT AS PROVIDED IN PARAGRAPH (2) OF
THIS SUBSECTION, AT THE TIME A LENDER RECEIVES A PAYMENT
OR ACCOUNT OF A LOAN, THE LENDER SHALL GIVE TO THE
BORROWER A PLAIN AND COMPLETE RECEIPT FOR THE PAYMENT.

(2)   IF THE PAYMENT IS MADE BY PERSONAL CHECK,
THE LENDER NEED GIVE A RECEIPT TO THE BORROWER ONLY ON
THE REQUEST OF THE BORROWER.

(D)   PREPAYMENT.

(1) A LENDER SHALL PERMIT A BORROWER TO
PREPAY A LOAN IN FULL OR IN PART AT ANY TIME, WITHOUT
PENALTY.

(2) IF A BORROWER PREPAYS A LOAN IN FULL, HE
SHALL RECEIVE A REFUND CREDIT FOR THE INTEREST TAKEN IN
ADVANCE. THE AMOUNT OF THE REFUND SHALL BE CALCULATED
ACCORDING TO THE "RULE OF 78"; THAT IS, THE REFUND SHALL
REPRESENT AT LEAST AS GREAT A PROPORTION OF THE TOTAL
INTEREST AS THE SUM OF THE PERIODIC TIME BALANCES AFTER
THE DATE OF PREPAYMENT BEARS TO THE SUM OF ALL THE
PERIODIC TIME BALANCES UNDER THE SCHEDULE OF PAYMENTS IN
THE ORIGINAL LOAN CONTRACT.

(E) MARKING PAPERS "PAID" OR "CANCELLED"; RETURN OF
SECURITY.