3090                                 LAWS OF MARYLAND                               Ch. 856

NOTWITHSTANDING ANY OTHER PROVISION OF LAW AND SUBJECT
TO THE APPROVAL OF THE BOARD OF COMMISSIONERS, A SAVINGS AND
LOAN ASSOCIATION HAS ALL THE POWERS OF A FEDERAL ASSOCIATION
MAY RAISE CAPITAL UNDER THE SAME CONDITIONS AND TO THE SAME
EXTENT AS A FEDERAL ASSOCIATION AS IF THE POWERS WERE
SPECIFICALLY ENUMERATED IN THIS TITLE.

COMMITTEE COMMENT: This section replaces former Art.
23, § 161E(e)(3)(v).

In this section, the phrase "has all the powers
of" was substituted for "raise capital under the
same conditions...as" since capital is raised
through the exercise of specific powers.

"Board of Commissioners", "federal association"
and "savings and loan association" are defined in
§ 9-101 of this title.

9-421. ALTERNATIVE MORTGAGE INSTRUMENTS.

(A)  ALTERNATIVE MORTGAGE INSTRUMENTS AUTHORIZED.

IN ACCORDANCE WITH THE REGULATIONS OF THE BOARD OF
COMMISSIONERS, A SAVINGS AND LOAN ASSOCIATION MAY PERMIT
BORROWERS TO REPAY INDEBTEDNESS ON A LOAN BY ANY METHOD OF
REPAYMENT OR PLAN, INCLUDING A PLAN OR REPAYMENT OF
INDEBTEDNESS ON A LOAN THAT IS OTHER THAN A DIRECT MONTHLY
REDUCTION OF PRINCIPAL PLAN THAT HAS A FIXED INTEREST RATE,
LEVEL PAYMENTS, AND FULL AMORTIZATION.

(B)  DISCLOSURE TO BORROWER.

IF A SAVINGS AND LOAN ASSOCIATION OFFERS ANY
ALTERNATIVE MORTGAGE INSTRUMENT ON AN OWNER-OCCUPIED
RESIDENTIAL LOAN IN ADDITION TO A STANDARD DIRECT MONTHLY
REDUCTION OF PRINCIPAL PLAN, AS REQUIRED BY THE BOARD OF
COMMISSIONERS, THE ASSOCIATION SHALL GIVE EACH PROSPECTIVE
BORROWER INFORMATION ON THE ALTERNATIVE PLAN AND THE
STANDARD PLAN.

COMMITTEE COMMENT: This section is a new provision
added to permit associations to meet the needs of
home buyers in varying economic climates and it
parallels comparable law in other jurisdictions.
An association would be permitted to offer
several types of plans or only one, as a matter
of business judgment.

This section is presently conceived to encompass
the Variable Rate Mortgage, the Reverse Annuity
Mortgage, the Graduated Payment Mortgage, the
Flip Mortgage, and the Renegotiated Rate
Mortgage.

The Board of Commissioners has received an
opinion from the State's Attorney General that