WILLIAM DONALD SCHAEFER, Governor                            Ch. 404

(B)      AT THE OPTION OF THE CREDIT GRANTOR, EACH WRITTEN STATEMENT
SHALL CONTAIN THE INFORMATION REQUIRED IN SUBSECTION (A)(1)(I) AND (2)(I)
AND (II) OF THIS SECTION EITHER FROM THE DATE THE LOAN WAS MADE OR, IF
PREVIOUS WRITTEN STATEMENTS HAVE BEEN FURNISHED TO THE CONSUMER
BORROWER, FROM THE DATE OF THE LAST WRITTEN STATEMENT.

(C)     THE WRITTEN STATEMENT SHALL BE FURNISHED TO THE CONSUMER
BORROWER:

(1)      IN THE CASE OF LOANS SECURED BY ANY INTEREST IN
RESIDENTIAL REAL PROPERTY, AT LEAST ANNUALLY; AND

(2)       IN THE CASE OF LOANS SECURED BY ANY INTEREST IN
RESIDENTIAL REAL PROPERTY OR TANGIBLE PERSONAL PROPERTY, WITHIN A
REASONABLE TIME AFTER RECEIPT OF A WRITTEN REQUEST OF A CONSUMER
BORROWER PROVIDED THE REQUEST IS MADE AT A REASONABLE TIME OR
INTERVAL SINCE THE FURNISHING OF THE LAST WRITTEN STATEMENT.

(D)     A CREDIT GRANTOR MAY CHARGE A FEE OF UP TO $5 FOR EACH
WRITTEN STATEMENT REQUESTED BY A CONSUMER BORROWER.

12-1026.

(A)     (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2)      "LENDING INSTITUTION" MEANS A BANK, SAVINGS BANK, OR
SAVINGS AND LOAN ASSOCIATION DOING BUSINESS IN MARYLAND.

(3)      "ESCROW ACCOUNT" MEANS AN EXPENSE OR ESCROW ACCOUNT
WHICH TENDS TO PROTECT THE SECURITY OF A LOAN BY THE ACCUMULATION OF
FUNDS FOR THE PAYMENT OF TAXES, INSURANCE PREMIUMS, OR OTHER EXPENSES.

(B)      (1) A LENDING INSTITUTION THAT MAKES A LOAN TO A CONSUMER
BORROWER SECURED BY A FIRST MORTGAGE OR FIRST DEED OF TRUST ON
RESIDENTIAL REAL PROPERTY AND CREATES OR IS THE ASSIGNEE OF AN ESCROW
ACCOUNT IN CONNECTION WITH THAT LOAN SHALL PAY INTEREST TO THE
CONSUMER BORROWER ON THE FUNDS IN THE ESCROW ACCOUNT AT THE
GREATER OF:

(I)       A RATE OF 3 PERCENT PER ANNUM SIMPLE INTEREST; OR

(II)     THE RATE OF INTEREST REGULARLY PAID BY THE LENDING
INSTITUTION ON REGULAR PASSBOOK SAVINGS ACCOUNTS.

(2) INTEREST ON THESE FUNDS SHALL BE:

(I)       COMPUTED ON THE AVERAGE MONTHLY BALANCE IN THE
ESCROW ACCOUNT; AND

(II)     PAID ANNUALLY TO THE BORROWER BY CREDITING THE
ESCROW ACCOUNT WITH THE AMOUNT OF INTEREST DUE.

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