1752

LAWS OF MARYLAND

Ch. 150

(4) In an open end account, including a credit card
plan that provides for sales, cash advances, or both, the buyer
or borrower may not be required to pay a membership fee for the
privilege of participating in the plan.

(5) With respect to an open end account made at a
rate pursuant to paragraph (3), the seller or holder may not
contract for, charge, or receive any compounded interest or
compounded finance charge.

(6) A seller or financial institution may assess
either, but not both:

(i) A finance charge equal to the rate of
interest charged on past due accounts as provided in the
agreement; or

(ii) A late payment charge.

12-506.2.

Changes in the rate applicable to an open end account,
including a credit card plan which provides for sales, cash
advances, or both, are limited as follows:

(1)  Any balance existing before July 1, 1982 is to be
repaid at the then applicable rate of interest or finance charge
regardless of any subsequent increase in the rate applicable to
the account.

(2)  If the rate applicable to any balance for which
the borrower or buyer becomes obligated [between ON OR AFTER July
1, 1982 [and July 1, 1985] is increased, the borrower or buyer
may repay the existing balance at the rate in effect prior to the
time the increase becomes effective. If the borrower or buyer
increases the balance of his account by making purchases or
requesting cash advances, the increased rate shall apply only to
the portion of the balance incurred after the rate increases.

12-609.

(a) The finance charge imposed on the sale of a motor
vehicle may not exceed an amount computed using the following
annual simple interest rates of finance charge:

(1)  Class 1: A new motor vehicle -- [16.5] 24
percent on the outstanding balance;

(2)  Class 2: A used motor vehicle designated by the
manufacturer by a model year not more than two years before the
year in which the sale is made -- [22] 24 percent on the
outstanding balance; and

(3)  Class 3: A used motor vehicle designated by the
manufacturer by a model year more than two years before the year