Section 12-924 - Release of lien securing extension of credit. - Maryland Statutes

§ 12-924. Release of lien securing extension of credit.
 

(a)  Applicability.-  

(1) Except as provided in paragraph (2) of this subsection, this section applies only to a plan between a credit grantor and a consumer borrower under which a credit grantor has taken any property as security for credit extended under the plan. 

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

(b)  Release; timing.- A credit grantor shall release any recorded mortgage, deed of trust, security agreement, or other lien securing the extension of credit within a reasonable time after: 

(1) The outstanding unpaid indebtedness under a plan has been paid in full; 

(2) There are no further obligations of the credit grantor or the consumer borrower under the plan; and 

(3) The account under the plan is closed. 

(c)  Nature of 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.]