Section 12-1024 - Requirements upon loan repayment. - Maryland Statutes

§ 12-1024. Requirements upon loan repayment.
 

(a)  Applicability.-  

(1) Except as provided in paragraph (2) of this subsection, this section applies only to a loan made by a credit grantor to a consumer borrower. 

(2) This section does not apply to a loan to which § 3-105.1 of the Real Property Article applies. 

(b)  Obligations of credit grantor.- Within a reasonable time after a loan to a consumer borrower has been repaid in full and all other obligations under the agreement, note, or other evidence of the loan have been fulfilled, a credit grantor shall: 

(1) (i) Indelibly mark with the word "paid" or "canceled" and return to the consumer borrower each agreement, note, or other evidence of the loan; or 

(ii) Furnish the consumer borrower with a written statement that identifies the loan transaction and states that the loan has been paid in full; and 

(2) Release any recorded mortgage, deed of trust, security agreement, or other lien securing the loan. 

(c)  Release.- The release shall be: 

(1) In writing; and 

(2) Prepared at the expense of the credit grantor. 

(d)  Recording.-  

(1) If the credit grantor does not record the release, the credit grantor shall furnish the consumer borrower with the release in a recordable form. 

(2) If the credit grantor records the release, the credit grantor shall furnish the consumer borrower with a copy of the release. 

(e)  Same - Fee.-  

(1) If a fee is collected by a credit grantor for the recording of a release: 

(i) The release shall be recorded by the credit grantor; and 

(ii) Any portion of the fee not paid to a governmental entity for recording the release shall be refunded to the borrower. 

(2) If a fee is not collected by a credit grantor for the recording of a release, the credit grantor is not obligated to record the release. 
 

[1993, ch. 404, § 2; 2001, ch. 492.]