676

LAWS OF MARYLAND

Ch. 33

MORTGAGE INSURANCE FIRST IS PROVIDED; OR

(II) THE END OF THE NORMAL USEFUL LIFE OF
THE MACHINERY OR EQUIPMENT.

(5) THIS SUBSECTION DOES NOT PREVENT A MORTGAGOR
FROM PREPAYING THE MORTGAGE LOAN AT ANY TIME.

REVISOR'S NOTE: This subsection is new language derived
without substantive change from Art. 41, §§
266-O(5) and 266T(b)(3) and (6).

In paragraph (3) (i) of this subsection, the
introductory phrase "if a public body is
mortgagor" is added for clarity.

As to the scope of this subsection, see revisor's
note to subsection (a) of this section.

(E)   PROCEEDS OF SALE.

THE MORTGAGE SHALL PROVIDE THAT ALL OF THE PROCEEDS
FROM THE SALE OF ANY PROPERTY THAT IS RELEASED FROM THE
MORTGAGE LIEN SHALL BE APPLIED TO THE OUTSTANDING BALANCE
SECURED BY THE MORTGAGE.

REVISOR'S NOTE: This subsection presently appears as
the last sentence of Art. 41, § 266-O(6).

The present reference to any "real or personal"
property is deleted as unnecessary in light of
the definition of "property" in § 13-101(n) of
this subtitle.

The only other changes are in style.

As to the scope of this subsection, see revisor's
note to subsection (a) of this section.

(F)   CONSTRUCTION MORTGAGE.

IT THE MORTGAGE IS A CONSTRUCTION MORTGAGE, THE
MORTGAGOR SHALL HAVE A COMMITMENT SATISFACTORY TO THE
AUTHORITY FOR PERMANENT FINANCING OF THE INDUSTRIAL PROJECT,
EITHER BY THE SAME OR ANOTHER LENDER.

REVISOR'S NOTE: This subsection is new language derived
without substantive change from the second
sentence of Art. 41, § 266-O(6).

The present requirement that the mortgage create
a "first lien" on the property is deleted as
unnecessary in light of subsection (g) of this
section.

The present requirement that the mortgagor have
the commitment for permanent financing "at the