HARRY HUGHES, Governor
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Article - Commercial Law
Section 12-306(a)
Annotated Code of Maryland
(1975 Volume and 1979 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be repealed, amended, or enacted to read as follows: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
12-306.
(a) (1) Except as provided in subsections (b) and (c)
of this section, a lender may charge interest on a loan at a
rate not [exceeding] MORE THAN the rates specified in this
subsection.
(2) For any loan with an original principal
balance of [$1,200] $2,500 2,000 or less, the maximum
interest rate is:
(i) 2.75 percent interest per month on
that part of the unpaid principal balance not [exceeding
$300] MORE THAN $700 500;
(ii) 2 percent interest per month on that
part of the unpaid principal balance [exceeding $300] THAT
IS MORE THAN $700 500 but not [exceeding $500] MORE THAN
$1,200 700; and
(iii) [1.25] 1.75 percent interest per
month on that part of the unpaid principal balance
[exceeding $500] THAT IS MORE THAN $1,200 700.
(3) For any loan with an original principal
balance of more than [$1,200] $2,500 2,000 and not more than
$3,500, the maximum interest rate is 1.75 percent interest
per month on the unpaid principal balance of the loan.
(4) For any loan with an original principal
balance of more than $3,500 and not more than $5,000, the
maximum interest rate is 1.5 percent interest per month on
the unpaid principal balance of the loan.
(5) For any loan with an original principal
balance of more than $5,000, the maximum interest rate is
1.35 percent interest per month on the unpaid principal
balance of the loan.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1980.
Approved May 27, 1980.
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