PARRIS N. GLENDENING, Governor

Ch.3

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

(6)     Nothing in this subsection shall prohibit the receipt of the loan proceeds
by the borrower at the time the consolidated loan agreement is made. The borrower must
return any loan proceeds received pursuant to the consolidated loan agreement if he
elects to cancel the consolidated loan agreement pursuant to subsection (5). The
borrower may retain the loan proceeds if he elects the separate loan option pursuant to
subsection (2).

DRAFTER'S NOTE:

Error: Stylistic errors in the introductory language of § 12-116 of the
Commercial Law Article.

Occurred: Ch. 753, Acts of 1982.

12-117.

With respect to any loan made at a rate pursuant to § 12-103(a) and (c) or § 12-404
of [the Commercial Law Article] THIS TITLE, the lender must comply with § 14-1302 of
this article except that subsection (c) of § 14-1302 is not applicable.

DRAFTER'S NOTE:

Error: Stylistic error in § 12-117 of the Commercial Law Article.
Occurred: Ch. 753, Acts of 1982.

- 115 -