HARRY HUGHES, Governor                                     3985

(b)  With respect to a secured open end credit plan, fees or
charges may not be imposed on a consumer borrower in addition to
interest or finance charges except for actual and verifiable fees
incurred by the credit grantor and not retained by the credit
grantor for the following:

(1)  Attorney's fees for services rendered in
connection with the preparation, closing, or disbursement of the
loan;

(2)  Any expense, tax, or charge paid to a
governmental agency;

(3)  Examination of title, appraisal, or other costs
necessary or appropriate to the security of the loan; and

(4)  Premiums for any insurance coverage permitted
under this subtitle.

(c)  If a plan is established for a consumer borrower, a fee
or charge may not be charged or collected unless the agreement
concerning the plan permits the fee to be charged.

(d)  If a plan is established for a borrower other than a
consumer borrower, the borrower and credit grantor may agree upon
any terms concerning charges and fees.

(e)  For purposes of this subsection, the additional charges
listed in subsections (a) and (b) of this section are not
interest or finance charges with respect to a plan.

(F) WITH RESPECT TO AN OPEN END CREDIT PLAN NOT SECURED BY
A LIEN ON RESIDENTIAL REAL PROPERTY, AND NOTWITHSTANDING ANY
OTHER PROVISION OF THIS SUBTITLE SECURED BY ANY DEPOSIT, SAVINGS,
PASSBOOK OR LIKE ACCOUNT OR CERTIFICATE OF DEPOSIT THAT PAYS NOT
LESS THAN THE HIGHEST INTEREST RATE ALLOWED BY APPLICABLE STATE
OR FEDERAL LAW IF THIS RATE IS STATED, A CREDIT GRANTOR MAY
IMPOSE ON A CONSUMER BORROWER THE FEES AND CHARGES PERMITTED
UNDER SUBSECTION (A) OF THIS SECTION.

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

May 29, 1984
The Honorable Melvin A. Steinberg
President of the Senate
State House
Annapolis, Maryland 21404