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LAWS OF MARYLAND

Ch. 22

REGULATIONS OF THE COMMISSIONER.

REVISOR'S NOTE: This section is new language that
combines without substantive change the last two
sentences of Art. 43A, §5(a)(1) and (2), and Art.
43A, §5(a)(3) and (5).

18-1009. TERM OF LOAN; CONDITIONS OF REPAYMENT.

(A)   BEGINNING OF PAYMENTS.

THE TERMS AND CONDITIONS OF ANY LOAN MADE OR GUARANTEED
BY THE CORPORATION MAY NOT REQUIRE THE BORROWER TO BEGIN
REPAYING THE LOAN EARLIER THAN 9 MONTHS OR LATER THAN 1 YEAR
AFTER HE CEASES TO BE A FULL-TIME OR PART-TIME STUDENT AT A
COLLEGE OR VOCATIONAL SCHOOL. HOWEVER, THE BOARD MAY

PROVIDE BY RULE OR REGULATION THAT REPAYMENT WILL NOT BEGIN:

(1)       WHILE THE BORROWER IS A FULL-TIME STUDENT AT
A COLLEGE OR VOCATIONAL SCHOOL, OR AT A COMPARABLE
INSTITUTION APPROVED BY THE COMMISSIONER; OR

(2)    FOR 3 YEARS WHILE THE BORROWER SERVES IN:

(I)    THE ARMED FORCES;

(II)       THE PEACE CORPS; OR

(III)      VISTA.

(B)  TERMS OF REPAYMENT.

(1)   EACH BORROWER SHALL REPAY THE FULL AMOUNT OF
THE LOAN WITHIN A PERIOD SET BY THE BOARD.

(2)   THE TOTAL PAYMENTS MADE BY A BORROWER DURING
ANY YEAR SHALL BE AT LEAST $360, OR THE BALANCE OF THE LOAN
IF THE BALANCE IS LESS THAN $36.0.

(3)   THE PERIOD OF REPAYMENT MAY NOT BE:

(I)    LESS THAN 5 YEARS AFTER THE REPAYMENT

BEGINS;

(II)   LONGER THAN 10 YEARS AFTER THE REPAYMENT
BEGINS; OR

(III)    LONGER THAN 15 YEARS FROM THE DATE OF THE
NOTE OR AGREEMENT EVIDENCING THE LOAN.

(4)   ANY BORROWER MAY ACCELERATE REPAYMENT OF
ALL OR ANY PART OF THE LOAN WITHOUT PENALTY.

(C)   EFFECT OF MILITARY OR VOLUNTEER SERVICE.

THE BOARD MAY DETERMINE BY RULE OR REGULATION WHETHER
TO EXTEND THE 10 OR 15 YEAR PERIOD FOR REPAYMENT FOR A
BORROWER WHO RECEIVED A 3-YEAR EXTENSION BECAUSE OF SERVICE