HARRY HUGHES, Governor                                      1755

Article - Financial Institutions
6-507.

(a) Except as otherwise expressly provided in this title, a
credit union may not charge interest on any loan to a member at a
rate of more than 1.5 percent a month on the unpaid balance.

(b) Notwithstanding the provisions of subsection (a) of
this section, a credit union may charge interest on a loan to a
member made on or after July 1, 1982, [and before July 1, 1985]
at 2 percent a month on the unpaid balance provided, with respect
to such loan, that:

(1) If the loan is a renewal or refinancing of a loan
made prior to July 1, 1982, the lender complies with § 12-116 of
the Commercial Law Article;

(2) 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 § 12-118 of the Commercial Law
Article;

(3) Upon the borrower's default, if the loan is
secured by personal property, the lender complies with § 12-115
of the Commercial Law Article concerning repossession and
redemption of the goods securing the loan;

(4) If the loan is for the purchase of consumer-
goods, the loan contract complies with § 12-117 of the Commercial
Law Article; and

(5) The loan does not include a balloon payment,
unless payment in full is due on demand or in 1 year or less.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1985.

Approved May 21, 1985.

CHAPTER 151

(Senate Bill 220)

AN ACT concerning

Homeless Women - Shelters

FOR the purpose of eliminating certain references to a model
shelter home for homeless women; providing that the