1654                                             LAWS OF MARYLAND                                        Ch. 452

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(3) [Late or delinquency charges shall] CHARGES
PERMITTED BY THIS SECTION MAY not be considered interest or

finance charges under the plan.

12-1008.

(a)  If the agreement governing a loan permits, a credit
grantor may:

(1)  For a nonconsumer borrower, charge a higher
periodic percentage rate or rates of interest on the amount of
outstanding unpaid payments or portions of payments under the
loan which are in default; and

(2)  For any borrower, impose [a]

(I) A late or delinquency charge [upon] ON
payment or portions of payments; AND

(II) IF PAYMENT IS MADE WITH A CHECK THAT IS
DISHONORED ON THE SECOND PRESENTMENT, A CHARGE NOT TO EXCEED $10.

(b)  In the case of a loan to a consumer borrower, no late
or delinquency charge may be charged unless the agreement, note,
or other evidence of the loan permits. No more than 1 late or
delinquency charge may be imposed for any single payment or
portion of payment, regardless of the period during which it
remains in default.

(c)  For the purposes of subsection (b) of this section, all
payments by the borrower shall be applied to satisfaction of
scheduled payments in the order in which they become due.

(D) CHARGES PERMITTED UNDER THIS SECTION MAY NOT BE
CONSIDERED INTEREST OR FINANCE CHARGES UNDER THE AGREEMENT.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall

take effect July 1, 1986.
Approved May 13, 1986.

CHAPTER 452

(House Bill 451)

AN ACT concerning

Fur Dealer's License - Exemption

FOR the purpose of exempting certain persons who sell or possess

to sell certain furs or pelts from obtaining a fur dealer's