(a) The maximum amount of the loan is $5,000.
(b) A disbursement of the loan shall be made directly to the plumbing company.
(c) The term of the loan is 12 to 60 months.
(1) Subject to subsection (d)(3) of this section, the interest rate for new loans is equal to the prime rate as of each July 1st, less 100 basis points.
(2) If payment is made by payroll deduction, an additional 50 basis point reduction to the interest rate shall be applied.
(3) The floor for the interest rate on a loan is:
(i) Four and one-half percent; or
(ii) Four percent for the loan with payroll deduction.
(e) The monthly payments of principal and interest shall be in a level payment amount in accordance with the loan repayment schedule.
(f) After a 15-day grace period, a late charge of $10.00 shall be applied for each late payment.
(1) The loan shall be a lien against the property on which the pipe is replaced that continues until the loan is paid in full.
(2) In the event of default, the enforcement of the lien shall be in accordance with the Maryland Contract Lien Act. (Res. 2019-2218)