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730 LAWS OF MARYLAND Ch. 143
(4) A GOVERNMENT OR GOVERNMENTAL SUBDIVISION OR
AGENCY.
(C) NOTWITHSTANDING SUBSECTIONS (A) AND (B) OF THIS
SECTION, A REVOLVING CREDIT PLAN MAY NOT BE SECURED BY A
SECONDARY LIEN ON RESIDENTIAL REAL PROPERTY IF THE PLAN IS
ACCESSED THROUGH THE USE OF A CREDIT DEVICE THROUGH WHICH THE
CREDIT GRANTOR ACQUIRES PURCHASE OBLIGATIONS INCURRED BY THE
HONORING OF THE CREDIT DEVICE.
12-903.
(A) (1) A BANK CREDIT GRANTOR MAY CHARGE AND COLLECT
INTEREST OR FINANCE CHARGES UNDER THE PLAN ON THE OUTSTANDING
UNPAID INDEBTEDNESS IN THE BORROWER'S ACCOUNT UNDER THE PLAN AT
ANY DAILY, WEEKLY, MONTHLY, ANNUAL, OR OTHER PERIODIC PERCENTAGE
RATE AS THE AGREEMENT GOVERNING THE PLAN PROVIDES, IF THE
EFFECTIVE RATE OF SIMPLE INTEREST DOES NOT EXCEED 24 PERCENT PER
YEAR. THE RATE OF INTEREST INITIALLY CHARGEABLE ON A PLAN MUST
BE EXPRESSED IN THE AGREEMENT AS A SIMPLE INTEREST RATE OR RATES.
(2) THE REPAYMENT TERMS FOR A PLAN EXTENDED TO A
CONSUMER BORROWER MAY NOT INCLUDE A PROVISION UNDER WHICH THE
CONSUMER BORROWER MAY BE REQUIRED TO PAY A BALLOON PAYMENT AT
MATURITY. HOWEVER, THE ADJUSTMENT OF PAYMENT AMOUNTS, DUE TO
FLUCTUATIONS IN UNPAID BALANCE OR RATE OF INTEREST, MAY NOT BE
DEEMED TO RESULT IN A BALLOON PAYMENT.
(B) WITH RESPECT TO A REVOLVING CREDIT PLAN OF A CONSUMER
BORROWER, INTEREST MAY BE CALCULATED ON AN AMOUNT NOT IN EXCESS
OF THE AVERAGE OF THE OUTSTANDING UNPAID INDEBTEDNESS FOR THE
APPLICABLE BILLING PERIOD, DETERMINED BY DIVIDING THE TOTAL OF
THE AMOUNTS OF OUTSTANDING UNPAID INDEBTEDNESS FOR EACH DAY IN
THE APPLICABLE BILLING PERIOD BY THE NUMBER OF DAYS IN THE
BILLING PERIOD, OR ON AN AMOUNT CALCULATED BY ANOTHER BALANCE
COMPUTATION METHOD SPECIFIED IN THE AGREEMENT.
(C) IF THE APPLICABLE PERIODIC PERCENTAGE RATE UNDER THE
AGREEMENT GOVERNING THE PLAN IS MONTHLY, A BILLING PERIOD SHALL
BE DEEMED TO BE MONTHLY IF THE LAST DAY OF EACH BILLING PERIOD IS
ON THE SAME DAY OF EACH MONTH OR DOES NOT VARY BY MORE THAN 4
DAYS.
(D) (1) NOTWITHSTANDING SUBSECTIONS (A) AND (B) OF THIS
SECTION:
(I) IF THE OUTSTANDING BALANCE OF PURCHASE
OBLIGATIONS UNDER AN OPEN-END CREDIT PLAN IS PAID IN FULL WITHIN
25 DAYS AFTER THE END OF A BILLING PERIOD, A FINANCE CHARGE OR
INTEREST MAY NOT BE IMPOSED ON A CONSUMER BORROWER WITH RESPECT
TO SUCH BALANCE FOR THAT BILLING PERIOD; AND
(II) IF THERE IS NO PURCHASE BALANCE AT THE
BEGINNING OF A BILLING PERIOD, A FINANCE CHARGE OR INTEREST MAY
NOT BE IMPOSED ON A CONSUMER BORROWER WITH RESPECT TO ANY
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