458

LAWS OF MARYLAND

[Ch. 49

(A)       FINANCE CHARGE AUTHORIZED.

NOTWITHSTANDING ANY OTHER STATUTORY LAW, A SELLER,
FINANCIAL INSTITUTION, OR THE SUCCESSOR IN INTEREST OF
EITHER MAY CHARGE, COLLECT, AND RECEIVE UNDER A RETAIL
CREDIT ACCOUNT A FINANCE CHARGE, HOWEVER DESCRIBED, NOT
TO EXCEED THE AMOUNTS PERMITTED IN §§ 12-505 AND 12-506
OF THIS SUBTITLE.

(B)       COMPUTATION ON GOODS OR SERVICES IN EXCESS OF
$200.

IF THE DATE OF PERFORMANCE OR DELIVERY OF AN ITEM OR
SERVICE, THE COST OF WHICH TO THE BUYER IS GREATER THAN
$200, IS MORE THAN 10 DAYS FROM THE DATE OF PURCHASE, THE
FINANCE CHARGE SHALL BE COMPUTED FROM THE DATE OF
PERFORMANCE OR DELIVERY.

REVISOR'S NOTE: Subsection (a) of this section is
new language derived without substantive
change from Act. 83, §153D(a).

Subsection (b) of this section combines
without substantive change the last sentences
of each of Art. 83, §153D(b)(5) and (c)(1).
It is placed here since it deals with both
closed and open end accounts.

The only changes are in style.

With respect to the substitution of "finance
charge" for "service charge," see revisor's
note to §12-501(f).

12-505. MAXIMUM FINANCE CHARGE - CLOSED END ACCOUNT.

(A) MAXIMUM FINANCE CHARGE.

IN A CLOSED END ACCOUNT, THE FINANCE CHARGE MAY NOT
EXCEED THE GREATER OF:

(1)      THE SUM OF:

(i) $12 PER $100 PER YEAR ON THAT PART OF THE
PRINCIPAL BALANCE NOT EXCEEDING $1,000; AND

(ii) $10 PER $100 PER YEAR ON THAT PART OF
THE PRINCIPAL BALANCE EXCEEDING $1,000; OR

(2)    A MINIMUM CHARGE OF $10 OR, IF THE DUE
DATE OF THE LAST INSTALLMENT IS EIGHT MONTHS OR LESS
AFTER THE EFFECTIVE DATE OF THE RETAIL CREDIT ACCOUNT
AGREEMENT, $8.