3366

VETOES

"FOR the purpose of permitting, under certain
circumstances, a mortgage to be indexed
and recorded when marked 'paid or canceled'
and allowing the mortgage to act as a release."
(Emphasis added.)

The bill proposes to amend § 3-105 of the Real Property
Article, by adding the following new subsection (e):

"WHEN THE DEBT SECURED BY A MORTGAGE IS
PAID FULLY OR SATISFIED, AND WHEN THE MORTGAGE
PROVIDES FOR THE EXECUTION OF A SEPARATE MORTGAGE
NOTE, BOND OR OTHER INSTRUMENT AS PART OF
THE EVIDENCE OF THE INDEBTEDNESS, AND WHEN
SUCH NOTE, BOND OR OTHER EVIDENCE OF THE TOTAL
INDEBTEDNESS IS MARKED 'PAID' OR 'CANCELLED'
BY THE HOLDER OR HIS AGENT, IT MAY BE RECEIVED
BY THE CLERK AND INDEXED 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 [sic],
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." (Emphasis added.)

Thus, while the title refers to the indexing and
recording, by way of release, of a "mortgage" that has been
marked "paid" or "cancelled", the new law would provide for
the indexing and recording, by way of release, of a marked
"separate mortgage note, bond or other instrument" that had
been previously executed "as part of the evidence of
indebtedness". 1/ Such a note, bond, or other instrument is
not a "mortgage"; rather, it is a separate instrument that
is, in turn, itself secured by a mortgage.

The release of a mortgage by means of an endorsement on
and the filing of the original mortgage itself - to which
the title apparently refers is a procedure essentially
provided for already in the present law, in § 3-105(b). It
is evident that the purpose and intended effect of proposed
new § 3-105(e) is to permit a mortgage to be released by
means of the filing of a document other than the original
mortgage - a purpose that is, unfortunately, not at all
reflected in the title. 2/

For these reasons, we cannot approve Senate Bill 374
for constitutionality.