Ch. 559                                          LAWS OF MARYLAND

CHAPTER 559

(Senate Bill 163)

AN ACT concerning

Private Mortgage Insurance - Notice of Duty to Cancel

FOR the purpose of requiring mortgage lenders to give certain
written notice to certain borrowers relating to the
cancellation of private mortgage insurance; providing for
certain penalties; and generally relating to private
mortgage insurance and mortgage lenders.

BY repealing and reenacting, with amendments,

Article - Commercial Law

Section 12-106 12-106 and 12-114(b)

Annotated Code of Maryland

(1983 Replacement Volume and 1987 Supplement)

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

Article - Commercial Law

12-106.

(a)  This section does not apply to any loan:

(1)  Described in § 12-103(e) of this subtitle; or

(2)   Made under the Maryland Higher Education Loan
Program Act.

(b)  (1) Before the execution of a loan contract under this
title, the lender shall furnish to the borrower a written
statement which sets forth:

(i) The total principal amount of the loan and
the total amount of finance charge as defined in the federal
Truth-in-Lending Act to be paid, stated in dollars, except that
on loans payable on demand, the total amount of finance charge to
be paid shall be stated on a per diem basis;

(ii) The annual effective rate of simple
interest charged, stated in percentage calculated to the nearest
0.2 percent; and

(iii) The itemized amount of payments in
addition to interest payable to the lender in connection with the
loan at the time the loan is made, stated in dollars.

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