3876                                  LAWS OF MARYLAND                                Ch. 753

FOR THE PRIVILEGE OF PARTICIPATING IN THE PLAN, PROVIDED
THAT:

(I) DURING THE PERIOD COVERED BY THE FEE,
ONLY FINANCE CHARGES EXCEEDING THE AMOUNT OF THE MEMBERSHIP
FEE MAY BE COLLECTED; AND

(II) NO MEMBERSHIP FEE IS COLLECTED ON OR
AFTER JULY 1, 1985.

(3) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH
(A)(1) AND (2), THE FINANCE CHARGE MAY NOT EXCEED 2 PERCENT
PER MONTH ON THAT PART OF THE OUTSTANDING BALANCE
ORIGINATING ON OR AFTER JULY 1, 1982, AND BEFORE JULY 1,
1985.

(4) IN AN OPEN END ACCOUNT, INCLUDING A CREDIT
CARD PLAN WHICH PROVIDES FOR SALES, CASH ADVANCES, OR BOTH,
THE BUYER OR BORROWER MAY BE REQUIRED TO PAY A MEMBERSHIP
FEE FOR THE PRIVILEGE OF PARTICIPATING IN THE PLAN, PROVIDED
THAT:

(I) DURING THE PERIOD COVERED BY THE FEE,
ONLY FINANCE CHARGES EXCEEDING THE AMOUNT OF THE MEMBERSHIP
FEE MAY BE COLLECTED; AND

(II) NO MEMBERSHIP FEE IS COLLECTED ON OR
AFTER JULY 1, 1985; AND

(III) A MEMBERSHIP FEE IS NOT CONSIDERED
TO BE INTEREST OR FINANCE CHARGE WITH RESPECT TO THE
OPEN END ACCOUNT OR ANY TRANSACTION ON THE ACCOUNT.

(4) IN AN OPEN-END ACCOUNT, INCLUDING A CREDIT
CARD PLAN THAT PROVIDES FOR SALES, CASH ADVANCES, OR BOTH,
THE BUYER OR BORROWER MAY NOT BE REQUIRED TO PAY A
MEMBERSHIP FEE FOR THE PRIVILEGE OF PARTICIPATING IN THE
PLAN.

(5) WITH RESPECT TO AN OPEN-END ACCOUNT MADE AT
A RATE PURSUANT TO PARAGRAPH (3), THE SELLER OR HOLDER MAY
NOT CONTRACT FOR, CHARGE, OR RECEIVE ANY COMPOUNDED INTEREST
OR COMPOUNDED FINANCE CHARGE.

(6) A SELLER OR FINANCIAL INSTITUTION MAY ASSESS
EITHER, BUT NOT BOTH:

(I) A FINANCE CHARGE EQUAL TO THE RATE OF
INTEREST CHARGED ON PAST DUE ACCOUNTS AS PROVIDED IN THE
AGREEMENT; OR

(II) A LATE PAYMENT CHARGE.

(h) (1) A seller or financial institution that imposes
a finance charge in connection with an open end account may