HARRY HUGHES, Governor

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SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1982.

Approved June 1, 1982.

CHAPTER 797

(Senate Bill 332)

AN ACT concerning

Retail Credit Accounts - Indirect Charges

FOR 'the purpose of prohibiting the imposition of indirect
charges through wholesalers or retailers of petroleum
products in certain circumstances on retail credit
accounts; defining a certain term; and generally
relating to retail credit accounts.

BY repealing and reenacting, with amendments,

Article - Commercial Law
Section 12-506(h)
Annotated Code of Maryland
(1975 Volume and 1981 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
read(s) as follows:

Article - Commercial Law
12-506.

(h) (1) A seller or financial institution that imposes
a finance charge in connection with an open end account may
not directly or indirectly contract for, charge, or receive
from the buyer any finance charge, membership or other fee,
discount, fine, commission, charge, brokerage, or other
consideration on that account in excess of that permitted by
this section.

(2)  If a credit card plan allows for both
purchases and the extension of cash advances, the charges
prohibited by this section may not be imposed as to either
function.

(3) (I) THE CHARGES PROHIBITED BY THIS SECTION
ARE INCLUDE, BUT ARE NOT LIMITED TO, CHARGES INDIRECTLY
IMPOSED ON THE BUYER WHEN THE SELLER OR FINANCIAL
INSTITUTION IMPOSES SUCH CHARGES ON A WHOLESALER OR RETAILER