2918

LAWS OF MARYLAND

Ch. 781

Section 12-103(a)

Annotated Code of Maryland

(1975 Volume and 1980 Supplement)

BY repealing and reenacting, without amendment,

Article - Commercial Law

Section 12-404(b)

Annotated Code of Maryland

(1975 Volume and 1980 Supplement)

Article - Real Property
Section 10-103(b)
Annotated Code of Maryland
(1974 Volume and 1980 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be repealed, amended, or enacted to read as follows: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

12-103.

(a) (1) Except as provided in subsections (b), (c),
(d), and (e) of this section, [(1)] a lender may charge
interest at an effective rate of simple interest not in
excess of 8 percent per year on the unpaid principal balance
of a loan if there is a written agreement signed by the
borrower which sets forth the stated rate of interest
charged by the lender.

(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 not to exceed 2 percent in excess
of the rate of interest payable on the certificate of
deposit.

(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 in excess of 18
percent.

(4) IF A LOAN MADE UNDER PARAGRAPH (1) OF THIS
SUBSECTION IS MADE ON A LAND INSTALLMENT CONTRACT WHICH IS
SUBJECT TO THE PROVISIONS OF TITLE 10 OF THE REAL PROPERTY
ARTICLE, THE LENDER MAY CHARGE A RATE OF INTEREST AS
PERMITTED IN SECTION 12-404(B) OF THIS ARTICLE.

12-404.

(b) A lender may charge interest at any effective rate
of simple interest not to exceed 16 percent per annum on the
principal balance of a loan.