HARRY HUGHES, Governor

2363

(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 NOT TO EXCEED [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 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
[12] 18 percent.

(c) (1) Subject to paragraph (2) of this subsection, a
lender may charge interest at [the following] AN effective
[rates] RATE of simple interest[:

(i) With respect to a loan not exceeding
$3,500, 18 percent per annum on the unpaid principal balance
of the loan; and

(ii) With respect to a loan exceeding
$3,500, 12 percent per annum] NOT IN EXCESS OF 18 PERCENT
PER YEAR on the unpaid principal balance of the loan.

12-506.

(a) In an open end account, the finance charge may not
exceed;

(1)  1.5 percent per month on that part of the
outstanding balance not exceeding [$500] $700; and

(2)  1 percent per month on that part of the
outstanding balance exceeding [$500] $700.

SECTION 3 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1980.

Approved May 27, 1980.

CHAPTER 692

(Senate Bill 335)

AN ACT concerning

Creation of a State Debt - State Public
School Construction and Capital Improvement
Loan of 1980