(9) The principal balance owed, which is the sum of items (5), (6), (7), and
(8) PLUS, IF THE AMOUNT STATED IN ITEM (III) ITEM (4)(III) OF THIS SUBSECTION IS A
NEGATIVE NUMBER, ADD THAT AMOUNT AS A POSITIVE NUMBER;

(10) The finance charge stated as a sum in dollars; and

(11) The time balance owed by the buyer to the seller, which is the sum of
items (9) and (10), the number of installment payments required to pay it, and the
amount and time of each payment.

(D) A SELLER MAY NOT BE DEEMED TO BE MAKING LOANS FOR PURPOSES OF
§ 11-301(B)(6)(I) OF THE FINANCIAL INSTITUTIONS ARTICLE MERELY BY ENGAGING IN
ACTIVITIES DESCRIBED IN SUBSECTION (B)(4)(II) OF THIS SECTION.

12-1012.

(C) (1) THIS SUBTITLE DOES NOT PROHIBIT A CREDIT GRANTOR, IN
CONNECTION WITH A SALE, FROM INCLUDING IN THE LOAN AMOUNT THE AMOUNTS
ACTUALLY PAID OR TO BE PAID BY THE CREDIT GRANTOR PURSUANT TO AN
AGREEMENT WITH THE BORROWER, ON BEHALF OF THE BORROWER TO DISCHARGE
ANY AMOUNT FINANCED UNDER AN OUTSTANDING LOAN AGREEMENT OR
INSTALLMENT SALE AGREEMENT OR THE UNPAID PORTION OF THE EARLY
TERMINATION OBLIGATION UNDER ANY LEASE OR OTHER OBLIGATION OF THE
LESSEE, WITH RESPECT TO A MOTOR VEHICLE OR OTHER PROPERTY TRADED IN.

(2) A CREDIT GRANTOR WHO IS A SELLER OF GOODS OR SERVICES MAY
NOT BE DEEMED TO BE MAKING LOANS FOR PURPOSES OF § 11-301(B)(6)(I) OF THE
FINANCIAL INSTITUTIONS ARTICLE MERELY BY ENGAGING IN ACTIVITIES
DESCRIBED IN PARAGRAPH (1) OF THIS SUBSECTION.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1999.

Approved May 27, 1999.

CHAPTER 557
(Senate Bill 370)

AN ACT concerning

Insurance - Premium Financing - Discrimination Independent Agents

FOR the purpose of prohibiting discrimination by discrimination by an independent
agent from negotiating or placing a premium finance agreement with a
premium finance company in which the independent agent has a direct or
indirect ownership interest; altering the applicability of a certain prohibition on
insurers that market through independent agents relating to discrimination
against independent agents, brokers, and insureds who use premium financing
instead of paying premiums in a different manner instead of paying premiums in
a different manner under certain circumstances; requiring certain independent