§ 12-1003. Computing interest
West's Annotated Code of MarylandCommercial LawEffective: June 1, 2016
Effective: June 1, 2016
MD Code, Commercial Law, § 12-1003
§ 12-1003. Computing interest
(a) A credit grantor may charge and collect interest on a loan at any daily, weekly, monthly, annual, or other periodic percentage rate as the agreement, the note, or other evidence of the loan provides if the effective rate of simple interest is not in excess of 24 percent per year. The rate of interest chargeable on a loan must be expressed in the agreement as a simple interest rate or rates.
(c)(1)(i) Except as provided in paragraph (2) of this subsection, if an installment loan under this subtitle made to a consumer borrower is secured by collateral other than a lien on residential real property, the credit grantor may not require a schedule of repayment under which a consumer borrower may be required to pay a balloon payment at maturity.
(ii) If an installment loan under this subtitle made to a consumer borrower is secured by a secondary lien on residential real property, the credit grantor may require a schedule of repayment providing for a balloon payment at maturity. On request, the consumer borrower is permitted to postpone payment of the balloon payment once for a period not to exceed 6 months. The borrower must continue to make installment payments in the amount required prior to maturity during the extension period. The credit grantor may not impose any charges or fees as a result of allowing an extension period.
Credits
Added by Acts 1983, c. 143, § 1, eff. July 1, 1983. Amended by Acts 2010, c. 632, § 1, eff. Oct. 1, 2010; Acts 2010, c. 633, § 1, eff. Oct. 1, 2010; Acts 2012, c. 202, § 1, eff. June 1, 2012; Acts 2012, c. 203, § 1, eff. June 1, 2012; Acts 2016, c. 407, § 2, eff. June 1, 2016; Acts 2016, c. 408, § 2, eff. June 1, 2016.
MD Code, Commercial Law, § 12-1003, MD COML § 12-1003
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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