3364                                                VETOES

AND RECORDED AS ANY OTHER INSTRUMENT IN THE NATURE OF A
RELEASE. THE MARKED NOTE, BOND OR OTHER EVIDENCE OF THE
TOTAL INDEBTEDNESS HAS THE SAME EFFECT AS A RELEASE OF THE
PROPERTY FOR WHICH IT IS THE SECURITY, AS IF A RELEASE WERE
EXECUTED BY THE NAMED MORTGAGEE OR HIS ASSIGNEE, IF THERE IS
ATTACHED TO OR ENDORSED ON THE NOTE AN AFFIDAVIT OF THE
HOLDER, THE PARTY MAKING SATISFACTION, OR AN AGENT OF EITHER
OF THEM, THAT IT HAS BEEN PAID OR SATISFIED, AND
SPECIFICALLY SETTING FORTH THE LAND RECORD REFERENCE WHERE
THE ORIGINAL MORTGAGE IS RECORDED.

(e) (F) A release of a mortgage or deed of trust may
be made on a separate instrument if it states that the
mortgagee, trustee, or assignee releases the mortgage or
deed of trust and states the names of the parties to the
mortgage or deed of trust and the date and recording
reference of the mortgage or deed of trust to be released.
In addition, any form of release that satisfies the
requirements of a deed and is recorded as required by this
article is sufficient.

(f) (G) If a full or partial release of a mortgage or
deed of trust is recorded other than at the foot of the
recorded mortgage or deed of trust, the clerk shall place a
reference to the book and page number or other place where
the release is recorded on the recorded mortgage or deed of
trust.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1981.

May 19, 1981
The Honorable James Clark, Jr.
President of the Senate
State House
Annapolis, Maryland 21404

Dear Mr. President:

In accordance with Article II, Section 17 of the
Maryland Constitution, today I have vetoed Senate Bill 374.

Senate Bill 374 was introduced to allow the release of
a mortgage by recording the mortgage note marked "paid" or
"cancelled" along with an affidavit that the note has been
paid. The procedure specified in Senate Bill 374 presumes
that the holder of the mortgage note is also the owner of
the note, and that the holder has the power to release the
debt represented by the note. However, under Section 7-103
of the Real Property Article, the mortgagee of record, who
is not necessarily the holder of the mortgage note, is
conclusively presumed to be the owner of a note secured by a
mortgage. Consequently, if a holder of a note, who is not
also the mortgagee of record, were to execute a release as