HARRY HUGHES, Governor

1749

(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 lender, including a seller who takes a mortgage
or deed of trust to secure payment of all or a portion of the
purchase price of a residence sold to a borrower, may make a loan
for the purpose of aiding the borrower in the sale of the
borrower's residence or the purchase of a new residence, and may
create a balloon payment at maturity of this loan if the balloon
payment is:

(i) Expressly disclosed to the borrower;

(ii) Agreed to by both the borrower and the
lender/seller in writing; and

(iii) Required to be postponed one time, upon
becoming due, at the borrower's request, for a period not to
exceed 24 months, provided that the borrower continues to make
the monthly installments provided for in the original loan
agreement, and no new closing costs, processing fees or similar
fees are imposed on the borrower as a result of the extension.
However, the requirement of this subparagraph does not apply if
the loan terms require payment in full within 12 months or less,
except that a borrower may postpone payment of the balloon
payment once for a period not to exceed 6 months and if, during
the extension period, the borrower continues to make payments in
the amount required prior to maturity, the lender may not impose
any charges or fees as a result of the extension period.

[(d) ] (C) Notwithstanding the provisions of subsections
(a)[-, (b), and (c)] AND (B) of this section, [on any loan
made on or after July 1, 1982, [and before July 1, 1985,] a
lender under this subtitle may charge interest not exceeding 24
percent per annum simple interest on the loan provided that:

(1)  The interest is computed on the unpaid principal
balances outstanding from time to time;

(2)  The lender does not contract for, charge or
receive any interest in advance or any compounded interest;

(3)  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 title;

(4)  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 title;
and