HARRY HUGHES, Governor                                       1189

1. THE LENDER IS A BANKING INSTITUTION, A
NATIONAL BANKING ASSOCIATION, A FEDERAL SAVINGS BANK, A FEDERAL
OR STATE SAVINGS AND LOAN ASSOCIATION, OR A FEDERAL OR STATE
CREDIT UNION; OR

2. THE LOAN IS SUBJECT TO THE PROVISIONS
OF § 501(A)(1) OF THE DEPOSITORY INSTITUTIONS DEREGULATION AND
MONETARY CONTROL ACT OF 1980, PUBLIC LAW 96-221, 94 STAT. 161.

(2)  FOR PURPOSES OF SUBSECTION (B) OF THIS SECTION,
"REFINANCING" MEANS INCREASING OR ALTERING THE BALANCE DUE, THE
TERM, OR THE INTEREST RATE OF AN EXISTING LOAN OR PAYING OFF AN
EXISTING LOAN WHETHER OR NOT THE LENDER ALSO MADE THE EXISTING
LOAN.

(3)  (I) IF THE LOAN IS A REFINANCING, THE LENDER IS
LIMITED AS TO THE INTEREST, FEES AND OTHER CHARGES MADE IN
CONNECTION WITH THE REFINANCED LOAN TO THOSE PROVIDED IN SUBTITLE
4 OF THIS TITLE.

(II) THE PROVISIONS OF ITEM (I) OF THIS
PARAGRAPH DO NOT APPLY TO A PURCHASE MONEY LOAN OR TO A LENDER

REFINANCING AN EXISTING LOAN IF THE LENDER IS A BANKING

INSTITUTION, A NATIONAL BANKING ASSOCIATION, A FEDERAL SAVINGS
BANK, A FEDERAL OR STATE SAVINGS AND LOAN ASSOCIATION, A FEDERAL
OR STATE CREDIT UNION, OR A CREDIT GRANTOR REFINANCING THE LOAN
PURSUANT TO SUBTITLES 9 OR 10 OF THIS TITLE.:

1. A PURCHASE MONEY LOAN;

2. A LENDER REFINANCING AN EXISTING LOAN
IF THE LENDER IS A BANKING INSTITUTION, A NATIONAL BANKING
ASSOCIATION, A FEDERAL SAVINGS BANK, A FEDERAL OR STATE SAVINGS
AND LOAN ASSOCIATION, A FEDERAL OR STATE CREDIT UNION, OR A
CREDIT GRANTOR REFINANCING THE LOAN PURSUANT TO SUBTITLES 9 OR 10
OF THIS TITLE; OR

3. A LOAN THAT IS SUBJECT TO THE
PROVISIONS OF § 501(A)(1) OF THE DEPOSITORY INSTITUTIONS
DEREGULATION AND MONETARY CONTROL ACT OF 1980, PUBLIC LAW 96-221,
94 STAT. 161.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect June 1, 1986.

Approved May 13, 1986.