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3880
LAWS OF MARYLAND
Ch. 753
percent per annum on the balances outstanding from time to
time of the extended principal, from the date of the
renewal, extension, or refund to the date set for the final
payment.
(b) The extended principal may not exceed the
aggregate amount of the unpaid portion of the time balance
under the agreement, any delinquency charges lawfully
payable, and any amount of cash actually refunded to the
buyer, less a credit for prepayment computed as if the
unpaid portion of the time balance had been paid in full at
the time of the renewal, extension, or refund.
(C) NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (A)
OF THIS SECTION, A SALES FINANCE COMPANY MAY CHARGE AN
ANNUAL EFFECTIVE RATE OF SIMPLE INTEREST OF 24 PERCENT ON
RENEWALS OR EXTENSIONS ON CONTRACTS MADE ON OR AFTER JULY 1,
1982, AND BEFORE JULY 1, 1985, ON THE BALANCES OUTSTANDING
FROM TIME TO TIME.
(D) NO SALES FINANCE COMPANY MAY CHARGE THE RATES
PERMITTED BY SUBSECTION (C) OF THIS SECTION UNLESS THE SALES
FINANCE COMPANY COMPLIES WITH THE LIMITATIONS OF SECTIONS
12-610.1 AND 12-610.2 OF THIS SUBTITLE AND PROVIDED THAT
SUCH A RENEWAL OR EXTENSION AGREEMENT MAY NOT PROVIDE FOR A
BALLOON PAYMENT.
Article - Financial Institutions
6-507.
(A) Except as otherwise expressly provided in this
title, a credit union may not charge interest on any loan to
a member at a rate of more than 1.5 percent a month on the
unpaid balance.
(B) NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (A)
OF THIS SECTION, A CREDIT UNION MAY CHARGE INTEREST ON A
LOAN TO A MEMBER MADE ON OR AFTER JULY 1, 1982, AND BEFORE
JULY 1, 1985, AT 2 PERCENT A MONTH ON THE UNPAID BALANCE
PROVIDED, WITH RESPECT TO SUCH LOAN, THAT:
(1) 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 THE COMMERCIAL LAW ARTICLE:
(2) 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
THE COMMERCIAL LAW ARTICLE;
(3) UPON THE BORROWER'S DEFAULT, IF THE LOAN IS
SECURED BY PERSONAL PROPERTY, THE LENDER COMPLIES WITH
SECTION 12-115 OF THE COMMERCIAL LAW ARTICLE CONCERNING
REPOSSESSION AND REDEMPTION OF THE GOODS SECURING THE LOAN;
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