2744

LAWS OF MARYLAND

Ch. 509

claimed and to the limitation of storage fees; and generally
relating to liens on aircraft, boats, and motor vehicles.

BY repealing and reenacting, with amendments,

Article - Commercial Law
Section 16-205(b) and 16-207(e)
Annotated Code of Maryland
(1983 Replacement Volume)

BY adding to

Article - Commercial Law
Section 16-207(f)
Annotated Code of Maryland
(1983 Replacement Volume)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read 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 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 a sale under this section shall be
applied, in the following order, to:

(i) The expenses of giving notice and holding
the sale, including reasonable attorney's fees;

(ii) [Storage] SUBJECT TO SUBSECTION (F) OF
THIS SECTION, STORAGE fees of the third party holder;

(iii) The amount of the lien claimed EXCLUSIVE
OF ANY STORAGE FEES EXCEPT AS PROVIDED IN PARAGRAPH (2) OF
SUBSECTION (F) OF THIS SECTION;

(iv) A purchase money security interest; [and]

(V) ANY STORAGE FEES OF THE THIRD PARTY HOLDER
IN EXCESS OF $300; AND

[(v)] (VI) 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.