HARRY HUGHES, Governor

4719

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 l2-506(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

12-508.

(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
WHILE THE SELLER OR FINANCIAL INSTITUTION IS ALSO A
PRODUCER, REFINER, DISTRIBUTOR, MANUFACTURER, TRANSPORTER,
OR MARKETER OF THE GOODS OR SERVICES PETROLEUM PRODUCTS SOLD
ON CREDIT TO THE BUYER, OR WHEN THE SELLER OR FINANCIAL
INSTITUTION OWNS A FEE SIMPLE OR LEASEHOLD INTEREST IN THE
REAL PROPERTY FROM WHICH THE GOODS OR SERVICES PETROLEUM
PRODUCTS ARE SOLD ON CREDIT TO THE BUYER.

(II) THE PROVISIONS OF SUBPARAGRAPH (I) OF
THIS PARAGRAPH DO NOT PROHIBIT THE SELLER OR FINANCIAL

INSTITUTION FROM IMPOSING THE CHARGES DESCRIBED IN

SUBPARAGRAPH (I) OF THIS PARAGRAPH FOR PURCHASES OF
NONPETROLEUM PRODUCTS.