1290

LAWS OF MARYLAND

Ch. 449

(a) Except as provided in subsections (b), (c), (d) ,
and (e) of this section, [(1)] a lender may charge
interest at an effective rate of simple interest not in
excess of [8] 18 percent per annum on the unpaid
principal balance of a loan if there is a written agreement
signed by the borrower which sets forth the stated rate of
interest charged by the lender.

—[—(2) If a loan made under paragraph (1) of
this subsection is secured by the pledge of collateral which
is a certificate of deposit held by the borrower, the lender
may charge interest at a rate equal to at least 2 percent in
excess of the rate of interest payable on the certificate of
deposit. However, in no event may this rate of interest
exceed 10 12 percent.

(3) If a loan made under paragraph (1) of this
subsection is secured by the pledge of collateral which is
other than a savings account or if such loan is unsecured,
the lender may charge a rate of interest not in excess of 10
12 percent.]

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1979.

Approved May 29, 1979.

CHAPTER 450
(Senate Bill 418)

AN ACT concerning

BY repealing and reenacting, with amendments,

Article — Real Property
Section 7-106(d)
Annotated Code of Maryland
(1974 Volume and 1978 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

L

Mortgages and Deeds of Trust - Releases

FOR the purpose of allowing the release of certain mortgages

or deeds—of trust upon the furnishing of a promissory
note—marked—paid or satisfied. providing that a
promissory note constitutes an executed release under
certain conditions.