892

LAWS OF MARYLAND

Ch. 263

FOR the purpose of making compliance with the provisions of
the federal Truth-in-Lending Act be sufficient
compliance with the provisions of State law; and
similarly amending the law concerning consumer loans
and secondary mortgage loans.

BY repealing and reenacting, with amendments,

Article - Commercial Law

Section 12-106(b), 12-308(a), and 12-407(b)

Annotated Code of Maryland

(1975 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be repealed, amended, or enacted to read as follows:

Article - Commercial Law

12-106.

(b) (1) Before the execution of a loan contract UNDER
THIS TITLE, the lender shall furnish to the borrower a
written statement which sets forth:

(i) The total principal amount of the loan
and the total amount of finance charge as defined in the
federal Truth-in-Lending Act to be paid, stated in dollars,
except that on loans payable on demand, the total amount of
finance charge to be paid shall be stated on a per diem
basis;

(ii) The annual effective rate of simple
interest charged, stated in percentage calculated to the
nearest 0.2 percent; and

(iii) The itemized amount of payments in
addition to interest payable to the lender in connection
with the loan at the time the loan is made, stated in
dollars.

(2)  If the loan is made to two or more
borrowers, delivery of the statement to one borrower is
sufficient, but a copy of the statement shall be furnished
to each other borrower.

(3)  Paragraphs (1) (I), (ii), and (iii) of this
subsection do not . apply to any loan subject to the
disclosure provisions of the federal Truth-in-Lending Act,
if

The lender complies with the applicable disclosure
provisions of the federal act and its regulations.

(4)  [Paragraph (1) (i) of this subsection shall
not apply to any loan subject to the disclosure provisions