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641
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HARRY HUGHES, Governor
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SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1983.
Approved May 10, 1983.
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CHAPTER 106
(Senate Bill 198)
AN ACT concerning
Secondary Mortgages - Balloon Payments
FOR the purpose of providing that a seller or lender may create
a balloon payment at the maturity of a secondary residential
mortgage bridge loan; and eliminating a certain condition
for a balloon payment at the maturity of a secondary
residential mortgage bridge loan or a deferred purchase
money secondary mortgage loan on the sale or purchase of
residential real property if the loan is to be paid in full
within a certain period of time; and relating generally to
balloon payments on secondary mortgages; and providing for
borrowers to postpone balloon payments under certain
conditions.
BY repealing and reenacting, with amendments,
Article - Commercial Law
Section 12-404(c)
Annotated Code of Maryland
(1975 Volume and 1982 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Commercial Law
12-404.
(c) A loan shall be amortized in equal or substantially
equal monthly installments without a balloon payment at maturity,
except that:
(1) Payment on the loan may be reduced or suspended
until all prior liens or encumbrances are wholly or partially
satisfied; and
(2) A seller or lender may make a deferred purchase
money secondary mortgage on the sale or purchase of residential
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