HARRY HUGHES, Governor

4807

subordinate only to a perfected security interest; and
altering the distribution of the proceeds of a lien
sale to provide that a lien takes precedence over
security interests.

BY repealing and reenacting, with amendments,

Article - Commercial Law
Section 16-205(b) and 16-207(e)
Annotated Code of Maryland
(1975 Volume and 1981 Supplement)

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 - Commercial Law

16-205.

(b) A boat lien or motor vehicle lien is subordinate
only to a security interest perfected as required by law,
EXCEPT WHEN IN THE CASE OF A MOTOR VEHICLE LIEN WHEN A
VEHICLE IS SOLD PURSUANT TO § 16-207 OF THIS ARTICLE.

16-207.

(e) (1) The proceeds of [the sale] A SALE UNDER THIS
SECTION shall be applied, in the following order, to:

(I) THE AMOUNT OF THE LIEN CLAIM;

(I) THE EXPENSES OF GIVING NOTICE AND
HOLDING THE SALE, INCLUDING REASONABLE ATTORNEY'S FEES;

[(i)] (II) Storage fees of the third party
holder;

[(ii)] (III) The expenses of giving notice
and holding the sale, including reasonable attorney's fee;

(III) THE AMOUNT OF THE LIEN CLAIMED;

[(iii)] (IV) A purchase money security
interest; and

[(iv)] (V) Any remaining secured parties
of record who shall divide the remaining balance equally if
there are insufficient funds to completely satisfy their
respective interests, but not to exceed the amount of a
security interest[; and

(v) The amount of the lien claim].