3866

LAWS OF MARYLAND

Ch. 753

(V) THE LOAN DOES NOT INCLUDE A BALLOON
PAYMENT, UNLESS PAYMENT IN FULL IS DUE ON DEMAND OR IN 1
YEAR OR LESS.

12-115.

(A) WITH RESPECT TO ANY LOAN MADE AT A RATE OF
INTEREST PURSUANT TO SECTIONS 12-103 (A) AND (C) OR 12-306
OF THE COMMERCIAL LAW ARTICLE OR SECTION 6-507 OF THE
FINANCIAL INSTITUTIONS ARTICLE:

(1) A LENDER MAY REPOSSESS GOODS SECURING A LOAN
UNDER AN AGREEMENT IF THE BORROWER IS IN DEFAULT IN:

(I) THE PAYMENT OF ANY SUM DUE UNDER THE
AGREEMENT;

(II) THE PERFORMANCE OF ANY OTHER
CONDITION WHICH THE AGREEMENT LAWFULLY REQUIRES HIM TO
PERFORM IN ORDER TO OBTAIN UNENCUMBERED TITLE TO THE GOODS;
OR

(III) THE PERFORMANCE OF ANY PROMISE THE
BREACH OF WHICH IS EXPRESSLY MADE A GROUND FOR REPOSSESSING
THE GOODS.

(2) THE LENDER MAY REPOSSESS GOODS ONLY BY:

(I) LEGAL PROCESS; OR

(II) SELF-HELP, WITHOUT USE OF FORCE.

(B) NOTHING IN THIS SECTION AUTHORIZES A VIOLATION OF
CRIMINAL LAW.

(C) (1) AT LEAST 10 DAYS BEFORE HE REPOSSESSES ANY
GOODS, A LENDER MAY SERVE A WRITTEN NOTICE ON THE BORROWER
OF HIS INTENTION TO REPOSSESS THE GOODS.

(2) THE NOTICE SHALL:

(I) STATE THE DEFAULT AND ANY PERIOD AT
THE END OF WHICH THE GOODS WILL BE REPOSSESSED; AND

(II) BRIEFLY STATE THE RIGHTS OF THE
BORROWER IN CASE THE GOODS ARE REPOSSESSED.

(D) THE NOTICE MAY BE DELIVERED TO THE BORROWER
PERSONALLY OR SENT TO HIM AT HIS LAST KNOWN ADDRESS BY
REGISTERED OR CERTIFIED MAIL.

(E) WITHIN 5 DAYS AFTER HE REPOSSESSES THE GOODS, THE
LENDER SHALL DELIVER TO THE BORROWER PERSONALLY OR SEND TO
HIM AT HIS LAST KNOWN ADDRESS BY REGISTERED OR CERTIFIED
MAIL, A WRITTEN NOTICE WHICH BRIEFLY STATES: