MARVIN MANDEL, Governor                                   5

repealed and re—enacted, with amendments to read as
follows:

Article — Commercial Law

12-108.

(A)          Except for a loan described in §12-103(d) or
(e) of this subtitle, a lender may not charge a borrower
or any other person any point or fraction of a point.

(B)     NOTWITHSTANDING THE PROVISIONS OF SUBSECTION
(A), A LENDER MAY CHARGE POINTS ON A MORTGAGE LOAN WHICH
IS NOT INSURED OR GUARANTEED BY AN AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES GOVERNMENT IF

(1) THE LOAN IS ELIGIBLE FOR PURCHASE BY AN AGENCY
OR INSTRUMENTALITY OF THE UNITED STATES GOVERNMENT, OR A
SUBSIDIARY THEREOF, PURSUANT TO THE EMERGENCY HOME
PURCHASE ASSISTANCE ACT OF 1974 (PL93-449) OR ANY
AMENDMENT TO IT, AND IS TENDERED IN GOOD FAITH FOR
PURCHASE PURSUANT TO A COMMITMENT OBTAINED BY THE LENDER
FROM SUCH AN AGENCY, INSTRUMENTALITY. OR SUBSIDIARY; AND

(2) THE FEDERAL LAW, RULES, OR REGULATIONS UNDER
WHICH THE AGENCY, INSTRUMENTALITY. OR SUBSIDIARY IS
AUTHORIZED TO PURCHASE THE LOAN ALLOWS THE PAYMENT OF
POINTS, AND THE POINTS CHARGED AND THE INTEREST RATE ON
THE LOAN ARE NOT IN EXCESS OF THOSE ALLOWED UNDER THE
FEDERAL PROGRAM.

SECTION [[2]] 3. AND BE IT FURTHER ENACTED, That
Section 1 of this Act is hereby declared to be an
emergency measure and necessary for the immediate
preservation of the public health and safety and having
been passed by a yea and nay vote supported by
three—fifths of all the members elected to each of the
two Houses of the General Assembly, the same shall take
effect from the date of its passage.

SECTION 4. AND BE IT FURTHER ENACTED, That Section 2
of this Act shall take effect July 1, 1975.

Approved January 24, 1975.

CHAPTER 2
(House Bill 287)