WILLIAM DONALD SCHAEFER, Governor Ch. 830

WHEREAS, It would be appropriate to clarify that Maryland
law permits mechanical repair contracts to be financed along with
sales of motor vehicles; now, therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section(s) 12-601(m) through (v), respectively, of
Article - Commercial Law of the Annotated Code of Maryland be
renumbered to be Section(s) 12-601(n) through (w), respectively.

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of
Maryland read as follows:

Article - Commercial Law

12-601.

(M) "MECHANICAL REPAIR CONTRACT" HAS THE MEANING STATED IN
TITLE 15, SUBTITLE 3 OF THE TRANSPORTATION ARTICLE.

12-630.1 12-609.

(b) (1) A service or other charge not specifically provided
for in this section may not be included in a retail installment
sale of a motor vehicle.

(2)  THIS SUBTITLE SECTION DOES NOT PROHIBIT A SELLER
FROM INCLUDING IN THE CASH PRICE AND FINANCING THE COST TO THE
BUYER OF A MECHANICAL REPAIR CONTRACT SOLD IN CONNECTION WITH A
MOTOR VEHICLE, PROVIDED THAT THE COST OF THE MECHANICAL REPAIR
CONTRACT IS SEPARATELY ITEMIZED IN THE FINANCING AGREEMENT.

(3)   FOR PURPOSES OF THIS SECTION, A MECHANICAL REPAIR
CONTRACT MAY BE SOLD ONLY FOR A VEHICLE WHICH IS COVERED BY AN
ORIGINAL MANUFACTURER'S WARRANTY.

12-1001.

(I) "MECHANICAL REPAIR CONTRACT" HAS THE MEANING STATED IN
TITLE 15, SUBTITLE 3 OF THE TRANSPORTATION ARTICLE.

12-1012.

(A) THIS SUBTITLE DOES NOT PROHIBIT A CREDIT GRANTOR FROM
INCLUDING IN THE LOAN AMOUNT THE COST TO THE BORROWER OF A
MECHANICAL REPAIR CONTRACT, PROVIDED THAT THE COST OF THE
MECHANICAL REPAIR CONTRACT IS SEPARATELY ITEMIZED IN THE
FINANCING AGREEMENT. FOR PURPOSES OF THIS SECTION, A MECHANICAL

REPAIR CONTRACT FOR A MOTOR VEHICLE MAY BE SOLD ONLY FOR A
VEHICLE WHICH IS COVERED BY AN ORIGINAL MANUFACTURER'S WARRANTY.

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