810                               Laws of Maryland                      [Ch. 398

CHAPTER 398
(House Bill 375)

AN ACT to amend subsection (a) of Section 3-116 and to enact new
Section 3-108 and Sections 3-201 to 3-209, inclusive, of Article
66½ of the Annotated Code of Maryland, 1957 Edition (1970
Replacement Volume), title "Vehicle Laws," subtitle "Certificate
of Title and Registration of Vehicles," to follow immediately after
Section 3-116.2 thereof, generally concerning security interests in
motor vehicles and adding to the present motor vehicle laws pro-
visions for the creation, use, and effect of security interests in motor
vehicles. AND TO PROVIDE FOR THE RECORDATION WITH
THE CLERKS OF THE COURTS AND CENTRAL FILING OF
SECURITY INTERESTS IN MOTOR VEHICLES TITLED BY
THE DEPARTMENT OF MOTOR VEHICLES.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 3-116 of Article 66½ of the Annotated Code of Mary-
land, 1957 Edition (1970 Replacement Volume), title "Vehicle Laws,"
subtitle "Certificate of Title and Registration of Vehicles," is
amended, and now Sections 3-108 and 3-201 to 3-209, inclusive, of
the same Article, title and subtitle are hereby enacted and all to read
as follows:

3-108. Certificate mailed to owner.

The Certificate of Title shall be mailed to the owner.

3-116. When Department to issue new certificate.

(a)    The Department, upon receipt of a properly assigned cer-
tificate of title, with an application for a new certificate of title, the
required fee and any other documents and articles required by law,
shall issue a new certificate of title in the name of the transferee as
owner[.] and mail it to the owner.

(b)    The Department shall file and retain every surrendered
certificate of title, the file to be maintained to permit the tracing of
title of the vehicle designated therein.

3-201. Security Interests; definitions.

(a)    For the purpose of Sections 3-201 to 3-209 the term
"proceeds" as used herein has the same meaning as defined in Article
95B of this Code, title "Uniform Commercial Code."

(b)    Sections 3-201 to 3-209 do not apply to or affect:

1.    A lien given by statute or rule of law to a supplier of services
or materials for the vehicle;

2.    A lien given by statute to the United States, this State, or any
political subdivision of this State;

3.    A security interest in a vehicle created by a manufacturer or
dealer who holds the vehicle for sale, but a buyer in the ordinary
course of trade from the manufacturer or dealer takes free of the
security interest;