1294

LAWS OF MARYLAND

Ch. 386

(ii) [$10 per $100 per year] 18 PERCENT on
that part of the [principal] OUTSTANDING balance exceeding
$1,000; or

(2) A minimum charge of $10 or, if the date of
the last installment is eight months or less after the
effective date of the installment sale agreement, $8.

12-611.

(a) (1) Notwithstanding the fact that the principal
balance of THE FINANCE CHARGE UNDER an installment sale
agreement relating to consumer goods or a motor vehicle is
payable in installments, the finance charge may not exceed
the amount computed on the principal balance, as calculated
in accordance with § 12-609 or § 12-610, from the date of
the agreement until the due date of the final installment.

[(2) The amount of the maximum finance charge
permitted by § 12-609 or § 12-610 of this subtitle shall be

decreased or increased proportionately if the unpaid

principal balance due in connection with a purchase is
payable in successive installments substantially equal in
amount:

(i) For a period other than a year; or

(ii) For amounts other than $100.]

(2) THE LENDER SHALL COMPUTE THE FINANCE CHARGE
ON THE ACTUAL UNPAID PRINCIPAL BALANCES OUTSTANDING FROM
TIME TO TIME, AND HE MAY NOT CONTRACT FOR, CHARGE, OR
RECEIVE INTEREST IN ADVANCE OR COMPOUNDED INTEREST.

(3) If an installment sale agreement provides
for either unequal or irregular payments, the finance charge
may be at a rate which will provide the same yield as is
permitted under § 12-609 or § 12-610 of this subtitle for
installment sale agreements which provide for equal and
regular installment payments. MAY BE COMPUTED:

(I)  ON THE ACTUAL UNPAID PRINCIPAL
OUTSTANDING FROM TIME TO TIME; OR

(II)  IN ADVANCE, AT THE TIME THE AGREEMENT
IS MADE, BY ADDING TO THE PRINCIPAL BALANCE THE AMOUNT OF
THE FINANCE CHARGE THAT WOULD BE EARNED IF THE INSTALLMENT
SALE AGREEMENT WERE REPAID EXACTLY ACCORDING TO ITS TERMS AT
THE APPLICABLE RATE.

(2) NOTHING IN THIS SUBTITLE SHALL BE CONSTRUED
TO PROHIBIT ANY PARTICULAR METHOD OF COMPUTING THE FINANCE
CHARGE ON AN INSTALLMENT SALE AGREEMENT SO LONG AS THE
AMOUNT OF THE FINANCE CHARGE DOES NOT RESULT IN A RATE OF
FINANCE CHARGE IN EXCESS OF THAT PERMITTED BY § 12-609 OR §
12-610, AS APPLICABLE.