2152

LAWS OF MARYLAND

Ch. 304

constituted an approved project as the amount of the State
participation bore to the total eligible cost of the approved
project, together with all costs and reasonable attorneys' fees
incurred by the State in the recovery proceedings.

(a)  The Department shall cause a notice of this right
of recovery to be recorded in the land records of the county or
Baltimore City in which the property is located before the State
makes any funds available for the approved project. The
recording of the notice shall not create any lien against the
property; however, it shall constitute notice to any potential
transferee, potential creditor, or other interested party of the
possibility that the State may obtain a lien under this Act.

(b)  In the event of an alleged sale or transfer as
described above, or in the event that a property is alleged to
have ceased to be a "facility" as defined in this Act, the
Secretary of the Board of Public Works may file, in the circuit
court for the county or Baltimore City in which the property is
located, a claim under this Act (styled as a civil action against
the owner of the property and any other interested parties,
including any transferor that the State wishes to make a party),
together with sworn affidavits stating facts on which the
allegations of default are based, as well as a detailed
justification of the amount claimed.

(i) If the circuit court determines from the
State's initial filing that there is probable cause to believe
that a default has occurred, the court shall authorize a
temporary lien on the property, in the amount of the State's
claim (plus any additional amount estimated to be necessary to
cover the costs and reasonable attorneys' fees incurred by the
State) or in such other amount as the court determines to be
reasonable, pending full determination of the State's claim.

(ii) The temporary lien takes effect on the
date of the court's authorization if the Secretary of the Board
of Public Works records a notice of temporary lien in the land
records of the county or Baltimore City in which the property is
located within 10 days thereafter; otherwise, the temporary lien
takes effect on the date a notice of temporary lien is recorded.
While the temporary lien is in effect, neither the owner nor any
person who acquired an interest in the property after the State
first made funds available in connection with the property under
this Act may take any action that would affect the title to the
property or institute any proceedings to enforce a security
interest or other similar rights in the property, without the
prior written consent of the State.

(iii) The owner of the property or any other
interested party may obtain release of this temporary lien at any
time by filing with the court a bond securing the payment in full
of the State's claim and any additional amount necessary to cover
the costs and reasonable attorneys' fees incurred by the State.
The owner or other interested party may cause the release to be
recorded in the land records.