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BLAIR LEE III, Acting Governor
1563
CHAPTER 425
(Senate Bill 58)
AN ACT concerning
Purchase Money Mortgages and Deeds of Trust — Disbursements
of Funds
FOR the purpose of permitting a lender secured by a purchase
money mortgage or deed of trust who is required to make
oath or affirmation that the amount of the loan so
secured has been paid over to a certain party by a
certain time to deliver certain net proceeds under
certain conditions.
BY repealing and reenacting, with amendments,
Article - Real Property
Section 4-106(b)
Annotated Code of Maryland
(1974 Volume and 1977 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to. read as follows:
Article — Real Property
4-106.
(b) (1) 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 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.
(2) THE LENDER MAY DELIVER NET PROCEEDS,
DEDUCTING CHARGES, INTERESTS, EXPENSES, OR ADVANCE ESCROW
AND CHARGES DUE FROM THE BORROWER, IF THE FOLLOWING
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