3864

LAWS OF MARYLAND

Ch. 753

BY repealing and reenacting, with amendments,

Article - Commercial Law

Section 12-103(a) and (c)(1), 12-306(a), 12-404,

12-505(a), 12-506(a) and (h)(1), 12-609(f),

12-610, and 12-634
Annotated Code of Maryland
(1975 Volume and 1981 Supplement)

BY repealing and reenacting, with amendments,

Article - Financial Institutions
Section 6-507, 11-301(b), and 11-302(a)
Annotated Code of Maryland
(1980 Volume and 1981 Supplement)

BY adding to

Article - Commercial Law

Section 12-115, 12-116, 12-117, 12-118, 12-505.1,

12-505.2, 12-505.3, 12-506.2, 12-610.1,

12-610.2, and 14-1302(a)(12)
Annotated Code of Maryland
(1975 Volume and 1981 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
read(s) as follows:

Article - Commercial Law

12-103.

(a) (1) Except as provided in subsections (b), (c),
(d), (e), and (f) of this section, 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,