SPIRO T. AGNEW, Governor                      1447

MENT AND DISBURSEMENT AND THE LEGAL EFFECT
OF SUCH AFFIDAVIT.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 30 of Article 21 of the Annotated Code of Maryland
(1966 Replacement Volume), title "Conveyancing," subtitle "Mort-
gages," be and it is hereby repealed, and that new Section 30 of
Article 21 be and it is hereby enacted in lieu thereof to stand in
the place of the section so repealed, and to read as follows:

SO.

(A)    No mortgage or deed of trust of of any kind on or as to any Mary-
land property shall be valid except as between the parties thereto,
unless there be contained therein of endorsed thereon an oath or
affirmation of the mortgagee or the party secured by a deed of trust
that the loan consideration secured by CONSIDERATION RECITED
IN said mortgage or deed of trust is true and bona fide as therein set
forth. No purchase money mortgage or purchase money deed of trust
shall be valid either as between the parties or as to any third parties

unless said oath or affirmation shall further state that the loan sum

which said mortgage or deed of trust is given to secure has been paid
over and disbursed by the mortgagee or the party secured by the deed
of trust at the time of execution of said mortgage or deed of trust by
the maker.

(B)  NO PURCHASE MONEY MORTGAGE OR PURCHASE
MONEY DEED OF TRUST INVOLVING LAND ANY PART OF
WHICH IS SITUATED IN MARYLAND, SHALL BE VALID
EITHER AS BETWEEN THE PARTIES OR AS TO ANY THIRD
PARTIES UNLESS SUCH MORTGAGE OR DEED OF TRUST
CONTAINS OR HAS ENDORSED UPON IT AT A TIME PRIOR
TO RECORDATION, THE OATH OR AFFIRMATION OF THE
MORTGAGEE OR PARTY SECURED BY SUCH DEED OF TRUST
STATING THAT THE AMOUNT OF THE LOAN WHICH SAID
MORTGAGE OR DEED OF TRUST HAS BEEN GIVEN TO
SECURE WAS PAID OVER AND DISBURSED BY THE MORT
GAGEE OR THE PARTY SECURED BY THE DEED OF TRUST
TO EITHER THE BORROWER OR THE PERSON RESPONSIBLE
FOR DISBURSEMENT OF FUNDS IN THE CLOSING TRANS-
ACTION OR THEIR RESPECTIVE AGENT AT A TIME NO
LATER THAN THE FINAL AND COMPLETE EXECUTION OF
THE MORTGAGE OR DEED OF TRUST, PROVIDED, HOW-
EVER, THAT THIS SUBSECTION SHALL NOT APPLY WHERE
A PURCHASE MONEY MORTGAGE OR DEED OF TRUST IS
GIVEN TO A SELLER IN A TRANSACTION IN ORDER TO
SECURE PAYMENT TO HIM OF ALL OR PART OF THE
PURCHASE PRICE OF SAID PROPERTY.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1968 JANUARY 1, 1969. JULY 1, 1968.

Approved May 7, 1968.