484

LAWS OF MARYLAND

[Ch. 49

For purposes of conformity, the term
"installment sale agreement" is substituted
for "contract."

The only other changes are in style.

12-609. MOTOR VEHICLES.

(A)        MAXIMUM FINANCE CHARGE.

THE FINANCE CHARGE IMPOSED ON THE SALE OF A MOTOR
VEHICLE MAY NOT EXCEED THE FOLLOWING RATES:

(1) CLASS 1: A NEW MOTOR VEHICLE - $9 PER
$100 PER YEAR ON THE PRINCIPAL BALANCE;

(2)   CLASS 2: A USED MOTOR VEHICLE DESIGNATED
BY THE MANUFACTURER BY A MODEL YEAR NOT MORE THAN TWO
YEARS BEFORE THE YEAR IN WHICH THE SALE IS MADE - $12 PER
$100 PER YEAR ON THE PRINCIPAL BALANCE; AND

(3)   CLASS 3: A USED MOTOR VEHICLE DESIGNATED
BY THE MANUFACTURER BY A MODEL YEAR MORE THAN TWO YEARS
BEFORE THE YEAR IN WHICH THE SALE IS MADE - $15 PER $100
PER YEAR ON THE PRINCIPAL BALANCE.

(B)   NO SERVICE OR OTHER CHARGE PERMITTED.

A SERVICE OR OTHER CHARGE NOT SPECIFICALLY PROVIDED
FOR IN THIS SECTION MAY NOT BE INCLUDED IN A RETAIL
INSTALLMENT SALE OF A MOTOR VEHICLE.

(C)   PENALTY FOR COLLECTING UNAUTHORIZED CHARGE.

EXCEPT FOR AN OVERCHARGE WHICH RESULTS FROM A BONA
FIDE ERROR IN COMPUTATION AND WHICH IS CORRECTED WITHIN
60 DAYS FROM THE DATE OF THE AGREEMENT, IF A HOLDER
COLLECTS A CHARGE GREATER IN AMOUNT THAN THE MAXIMUM
PERMITTED BY THIS SECTION, HE SHALL FORFEIT TO THE BUYER
ALL FINANCE CHARGES PAID OR PAYABLE UNDER THE AGREEMENT.

(D)   INSURANCE.

(1)   A HOLDER MAY   NOT COLLECT FROM THE BUYER A
GREATER AMOUNT FOR INSURANCE   THAN THAT ALLOWED BY THE
STATE INSURANCE DEPARTMENT FOR THE INSURER CARRYING THE
RISK.

(2)   THE INSURANCE FOR WHICH THE HOLDER MAY
COLLECT FROM THE BUYER IS LIMITED TO AUTOMOBILE BODILY
INJURY AND PROPERTY DAMAGE LIABILITY, AUTOMOBILE PHYSICAL
DAMAGE, LIFE AND ACCIDENT, AND MEDICAL REIMBURSEMENT.

(3)   EXCEPT FOR AN OVERCHARGE WHICH RESULTS