HARRY HUGHES, Governor                                     3133

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1984.

Approved May 29, 1984.

CHAPTER 624

(House Bill 507)

AN ACT concerning

Mortgages and Deeds of Trust - Liens and Priorities

FOR the purpose of clarifying that a readvance of funds has the
same priority as funds originally advanced under a mortgage
or deed of trust; and relating generally to liens and
priorities with respect to mortgages and deeds of trusts.

BY repealing and reenacting, with amendments,

Article - Real Property

Section 7-102

Annotated Code of Maryland

(1981 Replacement Volume and 1983 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Real Property

7-102.

(a)  No mortgage or deed of trust may be a lien or charge on
any property for any principal sum of money in excess of the
aggregate principal sum appearing on the face of the mortgage or
deed of trust and expressed to be secured by it, without regard
to whether or when advanced OR READVANCED. This subsection does
not apply to a mortgage or deed of trust to indemnify the party
secured against loss from being an endorser, guarantor, or surety
or to a mortgage or deed of trust to secure an indemnity
agreement.

(b)  If after the date of the mortgage or deed of trust, any
sum of money is advanced OR READVANCED, any endorsement or
guaranty is made, or the liability under an indemnity agreement
arises, priority for such sum of money or for any indemnity
arising under the endorsement, or guaranty, or indemnity
agreement dates from the date of the mortgage or deed of trust as
against the rights of intervening purchasers, mortgagees,
trustees under deeds of trust, or lien creditors, regardless of
whether the advance, READVANCE, endorsement, or guaranty was
obligatory or voluntary under the terms of the mortgage or deed
of trust.