WILLIAM DONALD SCHAEFER, Governor Ch. 559

(2)  If the loan is made to two or more borrowers,
delivery of the statement to one borrower is sufficient, but a
copy of the statement shall be furnished to each other borrower.

(3)  Paragraphs (l)(i), (ii), and (iii) of this
subsection do not apply to any loan subject to the disclosure
provisions of the federal Truth-in-Lending Act, if the lender
complies with the applicable disclosure provisions of the federal
act and its regulations.

(4)  A statement that complies with the applicable
disclosure provisions of the federal Truth-in-Lending Act is
sufficient to meet the requirements of this title.

(c) At least annually and, on request of the borrower, at
any other reasonable time or interval, a lender who receives
scheduled monthly periodic payments on more than five loans
secured by an interest in real property shall furnish to the
borrower a written statement informing the borrower of the amount
of:

(1)  Payments credited to reducing the principal;

(2)  Payments credited to interest as defined in this
subtitle; and

(3)  The remaining unpaid principal balance.

(D) AT THE TIME OF APPLICATION FOR A LOAN UNDER THIS TITLE
SECURED BY RESIDENTIAL REAL PROPERTY-WHERE THE LENDER REQUIRES
PRIVATE MORTGAGE INSURANCE AS A CONDITION FOR THE LOAN, THE
LENDER SHALL FURNISH TO THE BORROWER A CLEAR AND CONSPICUOUS
WRITTEN STATEMENT, IN PRINT NOT SMALLER THAN 10 POINT TYPE,
SPECIFYING THAT IF PRIVATE MORTGAGE INSURANCE IS REQUIRED TO BE
PURCHASED AS A CONDITION FOR MAKING THE LOAN, IF PRIVATE MORTGAGE

INSURANCE IS REQUIRED TO BE PURCHASED AS A CONDITION FOR MAKING
THE LOAN, THE BORROWER MAY BE ELIGIBLE TO REQUEST THAT UNDER
APPROPRIATE CIRCUMSTANCES THE PRIVATE MORTGAGE INSURANCE BE
CANCELED. THE STATEMENT SHALL BE SIGNED BY THE BORROWER AND A
COPY SHALL BE FURNISHED TO THE BORROWER.

12-114.

(b) Any person who violates the disclosure provisions of §
12-106(b), [and] (c), AND (D) of this subtitle is guilty of a
misdemeanor and on conviction is subject to a fine not exceeding
$1,000 or imprisonment not exceeding one year or both.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1988.

Approved May 27, 1988.

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