Ch. 614                                          LAWS OF MARYLAND

respect to a billing period in which the outstanding balance
of purchase obligations has been paid in full; prohibiting
the interest or finance charge from being imposed on a
certain revolving credit plan for new purchases made during
a billing period if the outstanding balance of purchase
obligations is paid in full within a certain number of days
of the beginning of the billing period; and generally
relating to interest and finance charges on certain charges
on revolving credit plans may not be imposed on certain
balances during a current billing period if the outstanding
purchase balance for a prior billing period is paid in full
within a certain number of days of the beginning of the
current billing period; and generally relating to the
imposition of interest or finance charges under revolving
credit plans.

BY repealing and reenacting, with amendments,

Article - Commercial Law

Section 12-903

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

12-903.

(a)  (1) A credit grantor may charge and collect interest or
finance charges under the plan on the outstanding unpaid
indebtedness in the borrower's account under the plan at any
daily, weekly, monthly, annual, or other periodic percentage rate
as the agreement governing the plan provides, if the effective
rate of simple interest does not exceed 24 percent per year. The
rate of interest chargeable on a plan must be expressed in the
agreement as a simple interest rate or rates.

(2) The repayment terms for a plan extended to a
consumer borrower may not include a provision under which the
consumer borrower may be required to pay a balloon payment at
maturity. However, the adjustment of payment amounts, due to
fluctuations in unpaid balance or rate of interest, may not be
deemed to result in a balloon payment.

(b)  With respect to a revolving credit plan of a consumer
borrower, interest may be calculated on an amount not in excess
of the average of the outstanding unpaid indebtedness for the
applicable billing period, determined by dividing the total of
the amounts of outstanding unpaid indebtedness for each day in
the applicable billing period by the number of days in the.

- 4180 -