488

LAWS OF MARYLAND

[Ch. 49

(2) 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 THE PREPAYMENT BEARS TO THE
SUM OF ALL THE PERIODIC TIME BALANCES UNDER THE SCHEDULE
OF PAYMENTS IN THE ORIGINAL AGREEMENT.

(C) RETENTION OF PART OF FINANCE CHARGE.

IF A PREPAYMENT IS MADE, THE [[SELLER]] HOLDER IS
ENTITLED TO RETAIN A FINANCE CHARGE OF AT LEAST $6.

(D) EXCEPTION.

IF THE AMOUNT OF THE CREDIT FOR PREPAYMENT IS LESS
THAN $1, NO REFUND NEED BE MADE.

REVISOR'S NOTE: This section presently appears as
Art. 83, §132A(e).

The reference to "seller" is deleted as
unnecessary in light of the definition of
"holder" in §12-601.

In subsection (a) of this section, the words

"without penalty" are added for purposes of

clarity and to conform to similar usage
elsewhere in this title.

The only other changes are in style.

For general prepayment provisions relating to
goods other than consumer goods, see §12—620;
for prepayment provisions relating to renewal,
extension, or refund agreements with a sales
finance company, see §12—635.

With respect to the use of the term "consumer
goods," see revisor's note to §12—601(f).

The Commission notes that the last sentence of
present Art. 83, §132A (e) — now subsection (c)
of this section — refers expressly to a
"seller." This limited reference appears
inconsistent with the second sentence of
present §132A(e) — now subsection (b) (1) of
this section — which generally refers to a
"holder." The Commission is uncertain as to
whether or not the limitation is intended and,
therefore, has retained the word "seller" to
avoid making any inadvertent substantive
change.