WILLIAM DONALD SCHAEFER, Governor                   Ch. 765

CHAPTER 765

(Senate Bill 839)

AN ACT concerning

Credit Regulation Revolving Credit Provisions
- Sales of Repossessed Property

FOR the purpose of allowing a credit grantor under the revolving
credit laws to sell repossessed property at a private sale;
requiring certain notice; establishing certain reporting
requirements; permitting the Commissioner of Consumer Credit
to make certain determinations; and establishing standards
governing the method of sale.

BY repealing and reenacting, with amendments,

Article - Commercial Law

Section 12-921(j) 12-115(j), 12-921(j), and 12-1021(j)

Annotated Code of Maryland

(1983 Replacement Volume and 1986 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Commercial Law

12-115.

(j) (1) The lender shall sell the repossessed goods at
PRIVATE SALE (SUBJECT TO THE PROVISIONS OF PARAGRAPH (2) OF THIS
SUBSECTION) OR at public auction. At least 10 days before [the]
A PUBLIC sale, the lender shall notify the borrower in writing
sent by [registered or] certified mail, RETURN RECEIPT REQUESTED,
sent to [his] THE BORROWER'S last known address of the time and
place of sale. ANY SALE OF REPOSSESSED PROPERTY MUST BE
ACCOMPLISHED IN A COMMERCIALLY REASONABLE MANNER.

(2) IN ALL CASES OF A PRIVATE SALE OF REPOSSESSED
GOODS UNDER THIS SECTION, A FULL ACCOUNTING SHALL BE MADE TO THE
BORROWER IN WRITING AND THE SELLER SHALL FILE A COPY OF THIS
ACCOUNTING WITH THE COMMISSIONER OF CONSUMER CREDIT. THIS
ACCOUNTING SHALL CONTAIN THE FOLLOWING INFORMATION:

(I) THE UNPAID BALANCE AT THE TIME THE GOODS
WERE REPOSSESSED;

(II) THE REFUND CREDIT OF UNEARNED FINANCE
CHARGES AND INSURANCE PREMIUMS, IF ANY;

(III) THE REMAINING NET BALANCE;

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