HARRY HUGHES, Governor                                  3539

at maturity of the deferred purchase money mortgage, if the
balloon payment is:

(i) Expressly disclosed to the borrower;

(ii) Agreed to by both the borrower and
the lender/seller in writing . ; AND

(III) REQUIRED TO BE POSTPONED ONE TIME,
UPON BECOMING DUE, AT THE BORROWER'S REQUEST, FOR A PERIOD
NOT TO EXCEED 24 MONTHS, PROVIDED THAT THE BORROWER
CONTINUES TO MAKE THE MONTHLY INSTALLMENTS PROVIDED FOR IN
THE ORIGINAL LOAN AGREEMENT, AND NO NEW CLOSING COSTS,
PROCESSING FEES OR SIMILAR FEES ARE IMPOSED ON THE BORROWER
AS A RESULT OF THE EXTENSION.

(3) A lender who takes back a deferred purchase
money secondary mortgage on a borrower's present residence
to aid the borrower in the purchase of a new residence may
create a balloon payment if the balloon payment is:

(i) Expressly disclosed to the borrower;

and

(ii) Agreed to by both the borrower and
lender in writing.

(D) NOTWITHSTANDING THE PROVISIONS OF SUBSECTIONS (A),
(B), AND (C) OF THIS SECTION, ON ANY LOAN MADE ON OR AFTER
JULY 1, 1982, AND BEFORE JULY 1, 1985, A LENDER UNDER THIS
SUBTITLE MAY CHARGE INTEREST NOT EXCEEDING 24 PERCENT PER
ANNUM SIMPLE INTEREST ON THE LOAN PROVIDED THAT:

(1) THE INTEREST IS COMPUTED ON THE ACTUAL
UNPAID PRINCIPAL BALANCES OUTSTANDING FROM TIME TO TIME;

(2) THE LENDER DOES NOT CONTRACT FOR, CHARGE, OR
RECEIVE ANY INTEREST IN ADVANCE, OR ANY COMPOUNDED INTEREST;
AND

(3) THE LENDER ALSO MAY COLLECT ACTUAL CHARGES
NOT RETAINED BY THE LENDER, LIMITED TO APPRAISAL FEES,

CHARGES FOR CREDIT REPORTS, AND PREMIUMS FOR PRIVATE

MORTGAGE INSURANCE.

12-404.1

NOTWITHSTANDING THE PROVISIONS OF SECTION 12-404, A
LOAN IN EXCESS OF $6,000 ELIGIBLE FOR SALE IN THE SECONDARY

MORTGAGE MARKET MAY BE AMORTIZED IN PERIODIC INSTALLMENTS,

WHICH MAY BE REGULAR, IRREGULAR, EQUAL, OR UNEQUAL

INSTALLMENTS AND MAY PROVIDE FOR A BALLOON PAYMENT AT
MATURITY IF THE BALLOON PAYMENT IS: