WILLIAM DONALD SCHAEFER, Governor                        S.B. 209

(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.

(B) NOTHING IN THIS SECTION AUTHORIZES A VIOLATION OF CRIMINAL

LAW.

(C) (1) AT LEAST 10 DAYS BEFORE A CREDIT UNION REPOSSESSES ANY
TANGIBLE PERSONAL PROPERTY, THE CREDIT UNION MAY SERVE A WRITTEN
NOTICE ON THE BORROWER OF THE INTENTION TO REPOSSESS THE TANGIBLE
PERSONAL PROPERTY.

(2) THE NOTICE SHALL:

(I) STATE THE DEFAULT AND ANY PERIOD AT THE END OF WHICH
THE TANGIBLE PERSONAL PROPERTY WILL BE REPOSSESSED; AND

(II) BRIEFLY STATE THE RIGHTS OF THE BORROWER IN CASE THE
TANGIBLE PERSONAL PROPERTY IS REPOSSESSED.

- 3493 -