Chapters 488 and 489 (Senate Bill 345/House Bill 249) of the 2014 Laws of Maryland altered the amount of interest a landlord or mobile home park owner must pay on a security deposit – from the previous 3% per annum that was mandated since 2004 – to the new U.S. Treasury yield curve rate calculation.
In 2015, Senate Bill 408/House Bill 782 updated this law as follows:
In creating this calculator, the Maryland Department of Housing and Community Development made the following determinations in the interpretation of the revised Real Property Article §8-203 to create the logic and formulas necessary to provide these calculations:
Daily Treasury Yield Curve Rates are available through the U.S. Department of Treasury.
For a given monthly payment period, the interest rate used in the calculation is either the U.S. Treasury Yield Curve Rate from the first business day of the calendar year of the start of the payment period, OR 1.5%, whichever is higher.
For example, if a payment is being calculated on March 18, 2017, the interest rate payable will be the U.S. Treasury Yield Curve Rate for January 4, 2016 (the first business day of 2016) or 1.5%, whichever is higher. This interest rate will be applied to the amount of the security deposit, and multiplied by 0.083 (to account for this payment reflecting 1/12th of a year). This amount will be set aside for final payment. Each monthly payment will be calculated using the relevant interest for that period, a 0.083 multiplier and the original amount of the security deposit. No interest is payable on a partial month at the end of a lease/tenancy.