HARRY HUGHES, Governor

3335

(i) Part or all of the price is payable in
one or more payments after the making of the contract; and

(ii) The seller takes collateral security
or keeps a security interest in the goods sold.

(2)  "Installment sale agreement" includes:

(i) A prospective installment sale
agreement;

(ii) A purchase money security agreement;
and

(iii) A contract for the bailment or

leasing of goods under which the bailee or lessee:

1. [contracts] CONTRACTS to pay as
compensation a sum that is substantially equal to or is more
than the value of the goods; AND

2. AT THE END OF THE TERM OF THE
CONTRACT, HAS THE OPTION TO PURCHASE THE GOODS UPON PAYMENT
OF A NOMINAL OR NOT ADDITIONAL FEE.

(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.

(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 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 OR A
BONA FIDE LEASE WHERE THERE IS NO OPTION TO PURCHASE THE
GOODS AND NO INTENT TO CONVEY TITLE OR OWNERSHIP OF THE
GOODS AT THE TERMINATION OF THE LEASE.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1981.

May 19, 1981
The Honorable James Clark, Jr.
President of the Senate
State House
Annapolis, Maryland 21404

Dear Mr. President: