Ch. 404                                     1993 LAWS OF MARYLAND

(h) (1) "Balloon payment" means any scheduled payment on an installment
loan that is more than 2 times the average of all other payments scheduled to repay the
installment loan.

(2) "BALLOON PAYMENT" DOES NOT INCLUDE A DOWN PAYMENT.

(J) "COMMERCIAL LOAN" AND "EXTENSION OF CREDIT FOR A COMMERCIAL
PURPOSE" MEAN AN EXTENSION OF CREDIT MADE:

(1) SOLELY TO ACQUIRE AN INTEREST IN OR TO CARRY ON A BUSINESS
OR COMMERCIAL ENTERPRISE; OR

      (2) TO ANY BUSINESS OR COMMERCIAL ORGANIZATION.

(K) "RESIDENTIAL REAL PROPERTY" MEANS OWNER-OCCUPIED REAL
PROPERTY HAVING A DWELLING ON IT DESIGNATED PRINCIPALLY.AS A RESIDENCE
WITH ACCOMMODATIONS FOR NOT MORE THAN FOUR FAMILIES.

12-1002.

(a)     Any credit grantor may, subject to the other provisions of this subtitle, offer
and extend closed end credit to a borrower.

(b)     In connection with [a] closed end. [account] CREDIT OFFERED AND
EXTENDED UNDER THIS SUBTITLE, a credit grantor may charge and collect the interest
and other charges permitted by this subtitle and may take any security as collateral as may
be acceptable to the credit grantor.

12-1010.

(a)      [A] EXCEPT AS PROVIDED UNDER SUBSECTION (C) OF THIS SECTION, A
consumer borrower may, with the consent of the credit grantor, refinance the entire
outstanding and unpaid amount of a loan, and the credit grantor may charge and collect
a refinancing charge in connection with any refinancing in an amount agreed to by the
credit grantor and the borrower.

(b)     For purposes of this section, "the entire outstanding and unpaid amount of a
loan" is:

(1)     If the interest and charges in respect of the loan were not precomputed,
the total of the unpaid balance and the accrued and unpaid interest and charges on the
date of refinancing; or

(2)     If the interest and charges on the loan were precomputed, the total of
the unpaid balance and the accrued and unpaid charges on the date of refinancing, less
the amount which the credit grantor would have been required to refund or credit upon
prepayment on the date of refinancing under Section 12-1009 of this subtitle governing
refunds upon prepayment.

(C) A CREDIT GRANTOR MAY NOT IMPOSE ANY REFINANCING CHARGES ON
THE REFINANCING OF AN INSTALLMENT LOAN MORE OFTEN THAN ONCE DURING
ANY 12-MONTH PERIOD OF THE LOAN IF THE LOAN IS:

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