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HARRY HUGHES, Governor
3865
the lender may charge a rate of interest not in excess of 18
percent. EXCEPT HOWEVER, ON A LOAN MADE ON OR AFTER JULY 1,
1982, AND BEFORE JULY 1, 1985, A LENDER MAY CHARGE AN
EFFECTIVE RATE OF SIMPLE INTEREST NOT IN EXCESS OF 24
PERCENT PER YEAR ON THE UNPAID PRINCIPAL BALANCE, PROVIDED
THAT:
(I) IF THE LOAN IS A RENEWAL OR
REFINANCING OF A LOAN MADE PRIOR TO JULY 1, 1982, THE LENDER
COMPLIES WITH SECTION 12-116 OF THIS SUBTITLE;
(II) IF THE LOAN INCLUDES A PROVISION FOR
A RATE OF INTEREST WHICH MAY BE ADJUSTED BY THE LENDER
DURING THE TERM OF THE LOAN, THE LENDER COMPLIES WITH
SECTION 12-118 OF THIS SUBTITLE;
(III) UPON THE BORROWER'S DEFAULT, IE THE
LOAN IS SECURED BY PERSONAL PROPERTY, THE LENDER COMPLIES
WITH SECTION 12-115 OF THIS SUBTITLE CONCERNING REPOSSESSION
AND REDEMPTION OF THE GOODS SECURING THE LOAN;
(IV) IF THE LOAN IS FOR THE PURCHASE OF
CONSUMER GOODS, THE LOAN CONTRACT COMPLIES WITH SECTION
12-117 OF THIS SUBTITLE; AND
(V) THE LOAN DOES NOT INCLUDE A BALLOON
PAYMENT, UNLESS PAYMENT IN FULL IS DUE ON DEMAND OR IN ONE
YEAR OR LESS.
(c) (1) Subject to paragraph 2 of this subsection, a
lender may charge interest at an effective rate of simple
interest not in excess of 18 percent per year on the unpaid
principal balance of the loan, EXCEPT. HOWEVER, ON A LOAN
MADE ON OR AFTER JULY 1, 1982, AND BEFORE JULY 1, 1985, A
LENDER MAY CHARGE AN EFFECTIVE RATE OF SIMPLE INTEREST NOT
IN EXCESS OF 24 PERCENT PER YEAR ON THE UNPAID PRINCIPAL
BALANCE OF THE LOAN . PROVIDED THAT:
(I) IF THE LOAN IS A RENEWAL OR
REFINANCING OF A LOAN MADE PRIOR TO JULY 1, 1982, THE LENDER
COMPLIES WITH SECTION 12-116 OF THIS SUBTITLE;
(II) IF THE LOAN INCLUDES A PROVISION FOR
A RATE OF INTEREST WHICH MAY BE ADJUSTED BY THE LENDER
DURING THE TERM OF THE LOAN, THE LENDER COMPLIES WITH
SECTION 12-118 OF THIS SUBTITLE;
(III) UPON THE BORROWER'S DEFAULT, IF THE
LOAN IS SECURED BY PERSONAL PROPERTY, THE LENDER COMPLIES
WITH SECTION 12-115 OF THIS SUBTITLE CONCERNING REPOSSESSION
AND REDEMPTION OF THE GOODS SECURING THE LOAN;
(IV) IF THE LOAN IS FOR THE PURCHASE OF
CONSUMER GOODS, THE LOAN CONTRACT COMPLIES WITH SECTION
12-117 OF THIS SUBTITLE; AND
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