460                                            LAWS OF MARYLAND                            [Ch. 49

(3)     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 FINANCE CHARGE AS THE SUM OF THE PERIODIC TIME
BALANCES AFTER THE DATE OF PREPAYMENT BEARS TO THE SUM OF
ALL PERIODIC TIME BALANCES UNDER THE SCHEDULE OF PAYMENTS
IN THE ORIGINAL AGREEMENT.

(4)    IF A PREPAYMENT IS MADE, THE [[SELLER]]
HOLDER IS ENTITLED TO RETAIN A FINANCE CHARGE OF AT LEAST
$6. IF THE AMOUNT OF CREDIT FOR PREPAYMENT IS LESS THAN
$1, NO REFUND NEED BE MADE.

(F) EXTENSION OR DEFERRAL CHARGE PERMITTED.

(1)   THE HOLDER OF A CLOSED END ACCOUNT MAY:

(i) BY AGREEMENT WITH THE BUYER, EXTEND THE
SCHEDULED DUE DATE OR DEFER THE SCHEDULED PAYMENT OF ALL
OR PART OF THE INSTALLMENTS PAYABLE UNDER IT; AND

(ii) CHARGE THE BUYER AN EXTENSION OR
DEFERRAL CHARGE.

(2)   THE EXTENSION OR DEFERRAL CHARGE MAY NOT
EXCEED AN AMOUNT EQUAL TO 1 PERCENT PER MONTH OF THE
AMOUNT EXTENDED OR DEFERRED FOR THE PERIOD OF EXTENSION
OR DEFERRAL.

(3)    THE PERIOD OF EXTENSION OR DEFERRAL MAY
NOT EXCEED THE PERIOD FROM THE DATE WHEN THE EXTENDED OR
DEFERRED AMOUNT WOULD HAVE BEEN PAYABLE IN THE ABSENCE OF
THE EXTENSION OR DEFERRAL TO THE DATE WHEN THE AMOUNT IS
MADE PAYABLE UNDER THE AGREEMENT OF EXTENSION OR
DEFERRAL.

REVISOR'S NOTE: Subsections (a) through (e) of this
section presently appear as Art. 83, §153D(b),
(d), and (e), except for that portion of
(b)(5) dealing with goods or services under
$200, which is now contained in §12—504.

Subsection (f) of this section presently
appears as Art. 83, §137A. It is repeated
here since it deals with closed end retail
credit accounts as well as retail installment
sales agreements.

Although the listing of rates by dollars per
$100, rather than in percentages, is somewhat
archaic, the Commission has retained this
style to avoid losing the emphasis to the fact
that the rates expressed in the section are