HARRY HUGHES, Governor                               3871

AND EFFECT OF A CHANGE IN RATE, INCLUDING ANY CHANGE IN THE
REQUIRED PERIODIC PAYMENT AMOUNT, AT LEAST 15 DAYS PRIOR TO
THE DUE DATE OF THE FIRST PAYMENT THAT REFLECTS THE CHANGED
RATE; AND

(7) NO NEW CLOSING COSTS, PROCESSING FEES OR
SIMILAR FEES ARE IMPOSED ON THE BORROWER AS A RESULT OF
ADJUSTMENTS IN RATE.

12-306.

(a) (1) Except as provided in subsections (b) and (c)
of this section, a lender may charge interest on a loan at a
rate not more than the rates specified in this subsection.

(2)  For any loan with an original principal
balance of $2,000 or less, the maximum interest rate is:

(i) 2.75 percent interest per month on
that part of the unpaid principal balance not more than
$500;

(ii) 2 percent interest per month on that
part of the unpaid principal balance that is more than $500
but not more than $700; and

(iii) 1.25 percent interest per month on
that part of the unpaid principal balance that is more than
$700.

(3)  For any loan with an original principal
balance of more than $2,000 and not more than $3,500, the
maximum interest rate is 1.75 percent interest per month on
the unpaid principal balance of the loan.

(4)  For any loan with an original principal
balance of more than $3,500 and not more than $5,000, the
maximum interest rate is 1.5 percent interest per month on
the unpaid principal balance of the loan.

(5)  For any loan with an original principal
balance of more than $5,000, the maximum interest rate is
1.35 percent interest per month on the unpaid principal
balance of the loan.

(6)  NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS
(A) (2) THROUGH (5) 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 THE
FOLLOWING RATES:

(I) FOR ANY LOAN WITH AN ORIGINAL
PRINCIPAL BALANCE OF $2,000 OR LESS, 2.75 PERCENT INTEREST
PER MONTH ON THAT PART OF THE UNPAID PRINCIPAL BALANCE NOT
MORE THAN $1,000 AND 2 PERCENT INTEREST PER MONTH ON THAT