ROBERT L. EHRLICH, JR., Governor                           H.B. 331

(i) If a written notice of refusal from the borrower in which the
borrower refuses to accept the amendment is not received by the credit grantor within
25 days of the mailing of the [second] notice of amendment, the amendment will
become effective on the first day of the billing cycle during which the effective date of
the amendment occurs or at any later date specified in the notice of amendment;

(ii) Enumerates the borrower's rights under paragraphs [(5) and
(6)] (4) AND (5) of this subsection upon timely notice of refusal by the borrower; and

(iii) Includes the address to which the borrower may send notice of a
refusal.

[(8)] (7) The [original] notice of amendment under subsection (b) of this
section, shall be enclosed in an envelope that contains on its face a statement in 10
point type that an important notice of an increase in rates or fees of the revolving
credit plan is enclosed.

[(9) This subsection does not apply to any extensions of credit secured by
real property.]

(d) (1) Notwithstanding subsection (c) of this section, at the election of the
credit grantor, an amendment made under this section may become effective as to a
particular borrower on the first day of the billing cycle in which the borrower:

(i) Makes a purchase or obtains a loan under the plan, after the
date specified in the notice of amendment which is not less than 25 days after the
date the notice of amendment was mailed; or

(ii) Sends a notice of agreement to the credit grantor in which the
borrower expressly agrees to the amendment.

(2)     In addition to the requirements of subsection (b) of this section, a
credit grantor electing to amend the agreement governing a revolving credit plan
under this subsection shall include in the notice of amendment a statement that the
amendment will become effective on the first date of the billing cycle during which the
borrower:

(i) Makes a purchase or obtains a loan under the plan, so long as
the purchase is made or the loan is obtained after a specific date which is at least 25
days after the mailing of the notice of amendment; or

(ii) Sends a notice of agreement to the credit grantor in which the
borrower expressly agrees to the amendment.

(3)     A borrower who receives a notice of amendment under this subsection
may pay any outstanding unpaid indebtedness in the account under the terms of the
unamended agreement governing the plan if the borrower does not:

(i) Make any purchase or obtain any loan under the plan after the
date specified in the notice of amendment; or

(ii) Send a notice of agreement to the credit grantor in which the
borrower expressly agrees to the amendment.

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