HARRY HUGHES, Governor                                         3207

Section 9-302(1)(h)

Annotated Code of Maryland

(1975 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

7-101.

(b) [This] SUBSECTION (A) OF THIS section is not applicable
to [a transfer] THE GRANT OF A SECURITY INTEREST IN A MORTGAGE by
[the] A mortgagee, or one of several mortgagees, OR ANY ASSIGNEE
of his interest in [the] A mortgage as security for payment of an
indebtedness or performance of an obligation. Such a [transfer]
TRANSACTION is governed by Title 9 of the MARYLAND Uniform
Commercial Code, [but] EXCEPT THAT in order to perfect the
security interest, [the transfer also shall be entered in the
grantor-grantee index and in the block index, if maintained, of]
AN ASSIGNMENT OF SUCH MORTGAGE SHALL BE RECORDED IN the land
records in the county where the mortgage is recorded [with a
reference to the date and place of filing the financing
statement], AND NO FINANCING STATEMENT NEED BE FILED. IF A
SECURITY INTEREST IN A MORTGAGE WAS ATTACHED BEFORE JULY 1, 1984,
AND IF THE SECURITY INTEREST WAS PERFECTED AS REQUIRED BY SECTION
7-101(B) AS IN EFFECT BEFORE JULY 1, 1984, THEN THE SECURITY
INTEREST SHALL CONTINUE TO BE PERFECTED AFTER JULY 1, 1984,
WITHOUT THE NEED TO FILE ANY CONTINUATION STATEMENT UNDER THE
MARYLAND UNIFORM COMMERCIAL CODE IF AN ASSIGNMENT IS RECORDED IN
THE LAND RECORDS IN THE COUNTY WHERE THE MORTGAGE IS RECORDED
BEFORE THE EFFECTIVENESS OF THE FINANCING STATEMENT LAPSES. IF A
SECURITY INTEREST IN A MORTGAGE WAS ATTACHED BUT WAS NOT
PERFECTED BEFORE JULY 1, 1984 AS REQUIRED BY SECTION 7-101(B) AS
IN EFFECT BEFORE JULY 1, 1984, AND IF AN ASSIGNMENT OF THE
MORTGAGE IS RECORDED IN THE LAND RECORDS IN THE COUNTY WHERE THE
MORTGAGE IS RECORDED BEFORE OR AFTER JULY 1 1984, THEN THE
SECURITY INTEREST WILL BE PERFECTED AS OF JULY 1, 1984 OR THE
DATE OF RECORDING, WHICHEVER IS LATER.

Article - Commercial Law

9-302.

(1) A financing statement must be filed to perfect all
security interests except the following:

(H) A SECURITY INTEREST IN A MORTGAGE COVERED BY
SECTION 7-101 OF THE REAL PROPERTY ARTICLE.

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