WILLIAM DONALD SCHAEFER, Governor

S.B. 209

(1) If there is no resale of repossessed goods, all obligations of the borrower
under the agreement shall be discharged, and the holder may retain the goods as his own
property without obligation to account to the buyer.

12-116.

Any loan made before July 1, 1982, which is refinanced at a higher rate pursuant to
Sections 12-103(a) and (c), 12-306, or 12-404 of the Commercial Law Article [or Section
6-507 of the Financial Institutions Article] must comply with the following requirements:

(1)     The lender must give the following disclosures in writing to the borrower
prior to the execution by the borrower of the new loan agreement:

If you do agree to consolidate your existing loan, you will be paying an annual

percentage rate of.....% on the existing net balance of $......., instead of the rate of

......% which you are now paying.

Schedule of Monthly Payments
Separate loan agreements                                                   Consolidated loan agreement

$ ....... per month for                                               .$.... per month for

the next .......months                                                            the next ......months

then

$ ....... per month for

.... months after that

Total of Payments

Separate loan agreements                                                   Consolidated loan agreement

$ ....... total of payments                                                     $ ....... total of payments

for your existing loan                                                          for your consolidated

.... for your new loan                                                      loan
total of payments

(2)     The lender must allow the borrower the choice of repaying his existing
loan balance at the originally agreed upon rate and obtaining any additional extension of
credit as a separate loan, notwithstanding any law which limits the lender's ability to make
more than 1 loan to the same borrower;

(3)     The lender must refund or credit to the borrower's account any
unearned interest and any returned insurance premiums upon the cancellation of
insurance sold in connection with the loan;

(4)     Except in the case of a demand loan, a loan may be refinanced only upon
the borrower's request;

(5)     The lender must allow the borrower the right to cancel the consolidated
loan agreement within 3 business days. The lender shall provide to the borrower
conspicuous notice of the provisions of this subsection; and

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