1172

LAWS OF MARYLAND

Ch. 312

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland

(as enacted by (H.B. 1) Chapter ____ of the Acts of the

General Assembly of 1980) be repealed, amended, or enacted
to read as follows:

Article - Financial Institutions

6-506.

(a) A credit union may make a mortgage loan to a
member if the loan is:

(A)  WITH THE APPROVAL OF THE BANK COMMISSIONER, A
CREDIT UNION MAY MAKE LOANS TO MEMBERS AS PROVIDED IN THIS
SECTION.

(B)  A LOAN UNDER THIS SECTION SHALL BE:

(1)  Secured by a first OR SECOND mortgage on
real property; AND

(2)  Amortized over a period of 30 years or less;
and

(3) Approval by the bank commissioner.

(b) (C) (1) A loan under this section THAT IS SECURED
BY A FIRST MORTGAGE may be made at any rate of interest that
does not exceed the rate authorized by Title 12, subtitle 1
of the Commercial Law Article for mortgage loans.

(2) A LOAN UNDER THIS SECTION THAT IS SECURED BY
A SECOND MORTGAGE MAY BE MADE AT ANY RATE OF INTEREST THAT
DOES NOT EXCEED THE RATE AUTHORIZED BY TITLE 12, SUBTITLE 4
OF THE COMMERCIAL LAW ARTICLE.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1980.

Approved May 6, 1980.

CHAPTER 313

(Senate Bill 420)

AN ACT concerning

Credit Unions - Interest Rate Charged

FOR the purpose of increasing the interest rate a credit
union may charge.