Ch. 549

1994 LAWS OF MARYLAND

(4)      If the loan is for the purchase of. consumer goods, the loan contract
complies with § 12-117 of the Commercial Law Article; and

(5)      The loan does not include a balloon payment, unless payment in full is
due on demand or in 1 year or less.]

6-510.

(a)      A borrower from a credit union may prepay all or part of a loan on any day on
which the office of the credit union is open.

(b)     (1) Subject to the provisions of paragraph (2) of this subsection, if a member
of a credit union fails to repay as due a loan made by the credit union, the credit union
may impose any fine or other penalty for which the bylaws provide.

(2) If an individual leaves employment either voluntarily or involuntarily

and is a member of a credit union, and at the time the employment is terminated the

. individual has a loan from the credit union, the credit union may not require payment of

the total outstanding balance of the loan made to the member earlier than 30 days after

the date of the termination of employment unless the member is in default in payment.

(c)      If the borrower or the comaker or guarantor of a loan made by a credit union
authorizes repayment of the loan through payroll deductions from the borrower's,
comaker's, or guarantor's wages or earnings, the payroll deductions shall remain in effect
and may not be terminated by the borrower, comaker, or guarantor until the loan has
been repaid in full. However, the amount of the payroll deduction may not exceed the
amount that could be attached under Title 15, Subtitle 6 of the Commercial Law Article.

(D) (1) (I) IN THIS SUBSECTION, "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.

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

(2) A CREDIT UNION MAY NOT REQUIRE A SCHEDULE OF REPAYMENT
UNDER WHICH A BORROWER MAY BE REQUIRED TO PAY A BALLOON PAYMENT,
UNLESS PAYMENT IN FULL IS DUE ON DEMAND OR WITHIN 1 YEAR.

6-512.

(A) (1) A CREDIT UNION MAY REPOSSESS TANGIBLE PERSONAL PROPERTY
SECURING A LOAN UNDER AN AGREEMENT, NOTE, OR OTHER EVIDENCE OF THE
LOAN IF THE BORROWER IS IN. DEFAULT.

(2) THE CREDIT UNION MAY REPOSSESS TANGIBLE PERSONAL
PROPERTY FROM A BORROWER ONLY BY:

(I) LEGAL PROCESS; OR

                 (II) SELF HELP, WITHOUT USE OF FORCE.           

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