1746

LAWS OF MARYLAND

Ch. 150

(iv) The loan is made and the mortgage or deed
of trust is executed after the effective date of this section;

(v) The loan is not a renewal of a loan which
was made by the lender to the borrower before the effective date
of this section and which was secured by a mortgage or deed of
trust on the same property; and

(vi) The lender did not issue before the
effective date of this section, a written commitment agreeing to
make the loan at a rate of interest of 10 percent or less.

(2)  For purposes of paragraph (l)(vi) of this
subsection:

(i) "Written commitment" includes any written
commitment, written offer to lend, or other written statement
issued by a lender which reasonably can be construed to be an
offer to make the loan; and

(ii) A written commitment issued before the
effective date of this section, to make a loan at an unspecified
rate of interest is a commitment to make the loan at a rate of
interest of 10 percent or less.

(3)  For the purpose of paragraph (l)(v) of this
subsection, a refinancing by which the borrower elects to
increase the balance due on an existing loan is not a renewal of
the loan.

(c) (1) Subject to paragraph (2) of this subsection, [a
lender may charge interest at an effective rate of simple
interest not in excess of 18 percent per year on the unpaid
principal balance of the loan. However, on a loan made on or
after July 1, 1982, land before July 1, 1985,] a lender may
charge an effective rate of simple interest not in excess of 24
percent per year on the unpaid principal balance of the loan
provided that:

(i) If the loan is a renewal or refinancing of
a loan made prior to July 1, 1982, the lender complies with
Section 12-116 of this subtitle;

(ii) If the loan includes a provision for a
rate of interest which may be adjusted by the lender during the
term of the loan, the lender complies with Section 12-118 of this
subtitle;

(iii) Upon the borrower's default, if the loan
is secured by personal property, the lender complies with Section
12-115 of this subtitle concerning repossession and redemption of
the goods securing the loan;