Two sets of banking bills, one endorsed by the Hughes administration, the other by the state's lending industry, await action in Annapolis. Among their provisions:
* Credit Card Fees. Prohibited under current law. Annual membership fees are favored by both sides. They say the fees are necessary to enable Maryland banks to compete with out-of-state lenders.
* Finance Charges, Other Fees. The lending industry bill would lift current restrictions and would allow loan fees, attorney's fees, filing fees, travel fees and late payment charges. It would permit compound interest and eliminate the 25-day grace period on retail accounts. It would allow balloon payments on nonpurchase-money second mortgages.
The Hughes bill prohibits compound interest and retains restrictions on balloon payments. It would retain the 25-day grace period.
* Variable Interest Rates (now limited to loans secured by real property). The lending industry bill would lift all restrictions on these rates. Loan interest would vary, according to a plan approved by bank and borrower. Compound interest would be allowed.
The Hughes bill eases current restrictions, would allow variable rates on personal, boat and tuition loans. However, rates must be pegged to the interest the lender pays depositors and may not be adjusted more than once every three months. Interest may not be compounded.
* Personal Lines of Credit on Second Mortgages (now limited to loans secured by real property). The lending industry bill would allow a borrower to secure credit with a credit or bank card, blank checks or by telephone. The Hughes bill prohibits a borrower from securing credit with a credit card, checks or by phone. Loan agreements must be worked out between lender and borrower.