HARRY HUGHES, Governor

863

this State or of the United States regulating the power of
such institution to engage in mortgage loan transactions
shall make or negotiate, or offer to make or negotiate, any
secondary mortgage loan except under the provisions of this
subtitle. Any person who makes a secondary mortgage loan
shall first obtain a license from the Commissioner as
provided for by this subtitle, except for the following
persons or instances:

(1)   Any banking institution, savings bank, or
association subject to Article 11 of this Code, any federal
savings and loan association, insurance company,
state-chartered building and loan association or any other
financial institution which is subject to any other law of
this State or of the United States regulating the power of
such institution to engage in mortgage loan transactions.

(2)   Any person who in aid of the sale of his
own residence takes back a deferred purchase money secondary
mortgage.

(3)   Any person who makes less than ten
secondary mortgage loans in any calendar year. SUCH LOANS
SHALL BEAR INTEREST AT THE A RATE NOT TO EXCEED THE RATE
AUTHORIZED BY SECTIONS 12-102 OR 12-103(A) TITLE 12,
"SUBTITLE 4. SECONDARY MORTGAGE LOANS - CREDIT PROVISIONS"
OF THE COMMERCIAL LAW ARTICLE.

(4)   Any builder who in the aid of the sale of
new residential dwellings built by him takes back a deferred
purchase money secondary mortgage.

(5)   Any nonprofit religious or charitable
organization.

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

Approved May 14, 1979.

CHAPTER 241

(Senate Bill 255)

AN ACT concerning

Credit Union Loans

FOR the purpose of eliminating the maximum amount that may
be loaned by a credit union to a member on a first real
estate mortgage lien security; increasing the
amortization period for such loans; specifying the
maximum rate of interest on such loans; and making
stylistic changes.