3406

LAWS OF MARYLAND

Ch. 732

upon, the amount of such additional debt so secured which has
been incurred after May 31, 1937, and with respect to which such
tax shall not theretofore have been paid, less the principal
amount of any debt then outstanding and secured by such
instrument which is to be paid or refunded out of the proceeds of
such additional debt.] THE DEBTOR SHALL PAY TAX AS FOLLOWS:

(1)  THE TAX MAY BE COMPUTED AND PAID ON THE PRINCIPAL
AMOUNT OF DEBT INCURRED AT THAT TIME. WITHIN 7 DAYS AFTER ANY
ADDITIONAL DEBT IS INCURRED, THE DEBTOR SHALL FILE WITH THE CLERK
OF THE COURT WITH WHICH THE INSTRUMENT HAS BEEN RECORDED A
VERIFIED STATEMENT OF THE AMOUNT OF THE ADDITIONAL DEBT AND SHALL
PAY TAX ON THAT AMOUNT. TO THE EXTENT THAT AN ADDITIONAL ADVANCE
IS APPLIED TO REPAY EXISTING DEBT SECURED BY THE INSTRUMENT, THE
TAX IS NOT DUE ON THE ADVANCE; OR

(2)  WITH RESPECT TO A CONSUMER TRANSACTION, FOR A
CONSUMER BORROWER, AS DEFINED IN § 12-901 OF THE COMMERCIAL LAW
ARTICLE, THE TAX MAY BE COMPUTED AND PAID ON THE AGGREGATE
PRINCIPAL AMOUNT OR ON THE MAXIMUM CREDIT LINE SUM, WHETHER
EXPRESSED AS THE AGGREGATE PRINCIPAL AMOUNT OR THE MAXIMUM CREDIT
LINE, STATED ON THE FACE OF THE INSTRUMENT. IN THIS EVENT, THE
TOTAL TAX LIABILITY SHALL BE SATISFIED BY PAYMENT OF TAX BASED ON
THE AGGREGATE PRINCIPAL AMOUNT OR THE MAXIMUM CREDIT LINE SUM,
WHETHER EXPRESSED AS THE AGGREGATE PRINCIPAL AMOUNT OR THE
MAXIMUM CREDIT LINE, REGARDLESS OF THE AMOUNT OF SECURED DEBT
ACTUALLY INCURRED. THE SECURED PARTY SHALL INFORM THE CONSUMER
BORROWER WHEN THE ORIGINAL EXTENSION OF CREDIT IS GRANTED OF THE
2 OPTIONAL METHODS AVAILABLE UNDER THIS SECTION FOR THE PAYMENT
OF TAXES. IF THE DEBTOR ELECTS TO PAY ANY REQUIRED TAX AS DEBT IS
INCURRED FROM TIME TO TIME, THE SECURED PARTY SHALL INFORM THE
DEBTOR WHEN THE ORIGINAL EXTENSION OF CREDIT IS GRANTED OF THE
DEBTOR'S RESPONSIBILITY TO PAY THAT TAX AND THE APPLICABLE
PENALTIES INCURRED UNDER SECTION 278(D) OF THIS ARTICLE FOR
FAILURE TO DO SO.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1984.

Approved May 29, 1984.

CHAPTER 733

(Senate Bill 267)

AN ACT concerning

State Permit Coordinating Council

FOR the purpose of requiring that appointees to the State Permit
Coordinating Council take a certain oath of office;