HARRY HUGHES, Governor

3321

CHAPTER 538

(Senate Bill 585)

AN ACT concerning

Real Property - Affidavit of Disbursement

FOR the purpose of providing that the affidavit of
disbursement for mortgages or deeds of trust relates
only to the initial amount paid of loans secured by
mortgages or deeds of trust. to the actual sum of money
advanced at the closing transaction.

BY repealing and reenacting, with amendments,

Article - Real Property
Section 4-106(b)(1)
Annotated Code of Maryland
(1981 Replacement Volume)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
read(s) 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 INITIAL
amount of the loan which the mortgage or deed of trust has
been given to secure ACTUAL SUM OF MONEY ADVANCED AT THE
CLOSING TRANSACTION BY THE SECURED PARTY 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