334                                     LAWS OF MARYLAND                               Ch. 153

Article - Real Property

Section 4-106(b)

Annotated Code of Maryland

(1974 Volume and 1975 Supplement)

SECTION 1. RE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section 4-106(b) of Article - Real
Property, of the Annotated Code of Maryland (1974 Volume
and 1975 Supplement) be and it is hereby repealed and
reenacted, with amendments, to read as follows:

Article — Real Property

4-106.

(b) No purchase—money mortgage or deed of trust
involving land, any part of which is located in the
state, is valid either as between the parties or as to
any third party unless the mortgage or deed of trust
contains or has endorsed on, or attached to it at a time
prior to recordation, the oath or affirmation of the
party secured by the mortgage or deed of trust stating
that the amount of the loan which the mortgage or deed of
trust has been given to secure was paid over and
disbursed by the party secured by the mortgage or deed of
trust to either the borrower or the person responsible
for disbursement of funds in the closing transaction or
their respective agent at a time no later than the [final
and complete] execution AND DELIVERY of the mortgage or
deed of trust[.] BY THE BORROWER. However, this
subsection does not apply where a mortgage or deed of
trust is given to a vendor in a transaction in order to
secure payment to him of all or part of the purchase
price of the property. The affidavit required by this
subsection is required for only that part of the loan
that is purchase money and, if the requirements of this
subsection are not satisfied, the mortgage or deed of
trust is invalid only to the extent of the part of the
loan that is purchase money.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1976.

Approved April 13, 1976.

CHAPTER 154
(House Bill 75)
AN ACT concerning

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