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LAWS OF MARYLAND

Ch. 732

CHAPTER 732

(Senate Bill 249)

AN ACT concerning

Recordation Tax - Instrument Securing Future Debts

FOR the purpose of clarifying that the debtor's liability for
payment of recordation tax may be satisfied by paying the
tax on the amount of debt actually incurred at the time of
an advance or on the aggregate principal amount or maximum
credit line, for a consumer borrower, on the aggregate
principal sum, whether expressed as the aggregate principal
amount or the maximum credit line, secured by an instrument;
altering the period of time within which a certain
verification must be filed by the debtor upon the debtor's
incurring additional debt; clarifying that to the extent
that an additional advance is applied to repay existing debt
secured by an instrument, the tax is not due on the advance;
requiring the secured party to inform the debtor of the
debtor's responsibility to pay the recordation tax and the
penalties for failure to do so; requiring certain notice
under certain circumstances; clarifying the exemption of
certain security agreements from the requirement they be
recorded and be subject to the recordation; and generally
relating to the recordation tax on instruments.

BY repealing and reenacting, with amendments,

Article 81 - Revenue and Taxes

Section 277(a)(2) and (k)

Annotated Code of Maryland

(1980 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 81 - Revenue and Taxes

277.

(a) (2) In this section the following word has the meaning
indicated.

(i) "instruments of writing" includes deeds,
mortgages, chattel mortgages, bills of sale, leases, deeds of
trust, contracts and agreements, and filed financing statements
under the Uniform Commercial Code used to publicize any of the
types of a secured transaction which, prior to enactment hereof,
were subject to this tax.

(ii) The term "instruments of writing" does not
include: