1754

LAWS OF MARYLAND

Ch. 150

Except as provided in § 12-609 as to a motor vehicle, and
notwithstanding the provisions of any other statutory law, in the
retail sale of consumer goods bought under an installment sale
agreement, including any add-on contract described in § 12-618,
the finance charge may not exceed [the greater of:

(1)  An amount computed using the following annual
simple interest rates of finance charge:

(i) 22 percent on that part of the outstanding
balance not exceeding $1,000; and

(ii) 18 percent on that part of the outstanding
balance exceeding $1,000; or

(2)  A minimum charge of $10 or, if the date of the
last installment is eight months or less after the effective date
of the installment sale agreement, $8.

(3)  Notwithstanding the provisions of subsection (1)
of this section, a seller may charge a finance charge at a rate
not in excess of] 24 percent per annum simple interest on the
outstanding balance [under an installment sale agreement made
on or after July 1, 1982[, and before July 1, 1985].

12-634.

(a)  A sales finance company may charge the buyer for a
renewal, extension, or refund made under § 12-632, an amount not
exceeding an annual effective rate of simple interest, as defined
in Subtitle 1 of this title, of [15] 24 percent per annum on
the balances outstanding from time to time of the extended
principal, from the date of the renewal, extension, or refund to
the date set for the final payment.

(b)  The extended principal may not exceed the aggregate
amount of the unpaid portion of the time balance under the
agreement, any delinquency charges lawfully payable, and any
amount of cash actually refunded to the buyer, less a credit for
prepayment computed as if the unpaid portion of the time balance
had been paid in full at the time of the renewal, extension, or
refund.

(c)  [Notwithstanding the provisions of subsection (a) of
this section, a sales finance company may charge an annual
effective rate of simple interest of 24 percent on renewals or
extensions on contracts made on or after July 1, 19821, and
before July 1, 1985], on the balances outstanding from time to
time.

(d)] No sales finance company may charge the rates
permitted by [subsection (c) of] this section unless the
sales finance company complies with the limitations of Sections
12-610.1 and 12-610.2 of this subtitle and provided that such a
renewal or extension agreement may not provide for a balloon
payment.