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PARRIS N. GLENDENING, Governor
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H.B. 438
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SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Commercial Law
12-912.
(a) A credit grantor may, if the agreement governing a revolving credit plan
permits, at any time amend the terms of the agreement in accordance with the
provisions of this section including:
(1) The terms governing the periodic percentage rate used to calculate
interest or finance charges;
(2) The method of computing the outstanding unpaid indebtedness to
which the rate is applied;
(3) The amounts of other charges; and
(4) The applicable repayment schedule.
(b) (1) The credit grantor shall notify each affected borrower of an
amendment in the manner set forth in the agreement governing the plan and in
compliance with the requirements of the federal Truth in Lending Act, and
regulations promulgated thereunder. If the amendment has the effect of increasing
the interest, finance charges, or other fees and charges to be paid by the borrower,
including, but not limited to those enumerated in § 12-905 of this subtitle, [or
altering the manner of their computation,] the credit grantor shall mail or deliver to
the borrower, at least 25 days before the effective date of the amendment, a clear and
conspicuous written notice which shall describe the amendment, including:
(i) A clear statement comparing the original terms and the terms
under the amended agreement; and
(ii) Any other pertinent information required by the provisions of
this section.
(2) If the amendment has the effect of increasing the interest, finance
charges, or other charges to be paid by the borrower, the amendment shall become
effective as provided in subsections (c) and (d) of this section.
(c) (1) Subject to the provisions of this paragraph, an amendment made
under this section shall become effective as to a particular borrower on:
(i) The first day of the billing cycle during which the effective date
of the amendment occurs; or
(ii) Any later date specified in the notice of amendment.
[(2) The credit grantor amending the agreement governing a revolving
credit plan under this subsection shall send a second notice in addition to the one
under subsection (b) of this section with the borrower's periodic statement
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- 5123 -
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