HARRY HUGHES, Governor

733

(iii) A contract for the bailment or
leasing of goods under which the bailee or lessee contracts
to pay as compensation a sum THAT IS substantially equal to
or [in excess of] IS MORE THAN the value of the goods.

(3) "Installment sale agreement" does not
include a bona fide C. O. D. transaction or a layaway
agreement as defined in § 14-1101(g) of this article.

(o) Principal balance.

"Principal balance" means the sum of items described in
§ 12-606 (b) (5), (6), and (7) of this subtitle.

(p) Retail sale.

"Retail sale" means the sale of goods for use or

consumption by the buyer or for the benefit or satisfaction

[which] THAT the buyer may derive from the use or

consumption of the goods by another, but not for resale by
the buyer.

(g) Sales finance company.

"Sales finance company" means a person WHO IS engaged,
WHETHER BY PURCHASE, DISCOUNT, PLEDGE, LOAN, OR OTHERWISE,
in the business of acquiring, investing in, or lending money
or credit on the security of[, whether by purchase,
discount, pledge, loan, or otherwise,] any interest in:

(1)   An installment sale agreement made between
other parties;

(2)   A retail credit account transaction, as
defined in § 12-501 of this article, made between other
parties; or

(3)   A home improvement transaction, as defined
in ARTICLE 56, § 249 (c) of [Article 56] THE CODE, made
between other parties, if collateral security is required by
and given to the contractor as a condition to the
transaction.

(t) Surety.

(1)      "Surety" includes a guarantor[, but].

(2)       "SURETY" does not include a seller who
sells, transfers, or assigns an agreement.

SUPPLEMENTAL REVISOR'S NOTE TO SECTION: Ch._____, Acts

of 1980, which enacted the Financial Institutions
Article, also amended this section, without
substantive change, to conform its definitions to
the substantively identical definitions in Title
11, Subtitle 4 of that article, which relates to
the licensing of sales finance companies.