Sec. 1. 9-A MRSA §2-509, as enacted by PL 1973, c. 762, §1, is amended to read:

§2-509. Right to prepay

Subject to the provisions on rebate upon prepayment, section 2-510, the consumer may prepay in full the unpaid balance of a consumer credit transaction at any time without penalty, except for minimum charges as permitted by law. Notwithstanding any other provision of this Title, a reasonable charge may be assessed upon a consumer related to prepayment of a consumer loan secured by an interest in land if the charge is reasonably calculated to offset the cost of origination of the loan.

Sec. 2. 9-B MRSA §429, sub-§§2 and 3, as repealed and replaced by PL 1983, c. 679, §2, are amended to read:

2. Payment of interest or dividends. Each mortgagee holding funds of a mortgagor in an escrow account on behalf of itself or another mortgagee for the payment of taxes or insurance premiums with respect to mortgaged property located in this State shall pay the mortgagor, at least quarterly, dividends or interest on the account at a rate of not less than 3% per year, but when the mortgagee is a financial institution that offers savings deposit or share accounts to consumers, the mortgagee shall pay the mortgagor dividends or interest on the account at a rate of not less than 1% per year, the institution is not required to pay more than 3% per year on the escrowed funds. The dividends or interest paid under this subsection may not be reduced by any charge for service or maintenance of the account.

3. Computing and crediting interest. Under subsection 2, in the case of escrow accounts offered by mortgagees other than financial institutions offering savings deposit or share accounts to consumers, interest shall must be computed on the daily balances in the account from the date of receipt to the date of disbursement and shall must be credited to the account as of the last business day of each quarter of a calendar or fiscal year. If the such an account is closed or discontinued before the last business day of a quarter of a calendar or fiscal year, interest shall must be computed and credited as of the day the account is closed or discontinued. For purposes of this section the foregoing calculations, the mortgagee may take into account debit balances resulting from advances and may elect to compute interest on the basis of the actual number of days in each quarter and year, or on the basis of a 30-day month and a 360-day year. At least once a year, the mortgagee, including financial institutions offering savings deposit or share accounts to