2264                                          LAWS OF MARYLAND                                      Ch. 361

WHEREAS, Section 7-105(f)(2) of the Real Property Article
currently permits a tenancy to continue after a foreclosure sale
of a mortgage or deed of trust which is entered into before the
foreclosure sale only if the mortgage or deed of trust so
provides; and

WHEREAS, There may be situations in which it would be
beneficial to both the beneficiary under the mortgage or deed of
trust and the tenant to have the tenancy continue after the
foreclosure sale; now, therefore,

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

Article - Real Property

7-105.

(f) (2) If [the mortgage or deed of trust so authorizes
and] the required advertisement of sale so discloses, a
foreclosure sale shall be made subject to one or more of the
tenancies entered into subsequent to the recording of the
mortgage or deed of trust OR OTHERWISE SUBORDINATED THERETO. Any
lease so continuing is unaffected by the sale, except the
purchaser shall become the landlord, as of the date of the sale,
on ratification of the sale.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act applies
to all foreclosure sales held on or after January 1, 1986.

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall
take effect January 1, 1986.

Approved May 21, 1985.

CHAPTER 362

(House Bill 818)

AN ACT concerning

Corporations and Associations - Action by Directors

FOR the purpose of defining the minimum number of directors that
will constitute a quorum pursuant to the bylaws if the
number of directors is 3 or less.

BY repealing and reenacting, without amendments,