HARRY HUGHES, Governor                                     1559

CHAPTER 418
(House Bill 151)

AN ACT concerning

Liens on Personal Property

FOR the purpose of providing that a certain boat lien is

subordinate to a specific type of mortgage; providing that a
certain boat lien is subordinate to a perfected security
interest under certain circumstances; providing an
exception; providing that, before a public sale of personal
property to which a certain lien attaches, the lienor shall
notify holders of perfected security interests in the
personal property; clarifying that, before a public sale of
a motor vehicle to which a certain lien attaches, the lienor
shall notify the Motor Vehicle Administration as well as all
holders of perfected security interests; requiring the

Department of Natural Resources to issue a title free and
clear of any lien; defining a certain term; and generally
relating to priorities and notices of certain liens on
personal property.

BY repealing and reenacting, with amendments,

Article - Commercial Law

Section 16-205 and 16-207

Annotated Code of Maryland

(1983 Replacement Volume and 1985 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF

MARYLAND, That the Laws of Maryland read as follows:

Article - Commercial Law

16-205.

(a)  An aircraft lien is subordinate only to the rights of
the holder of any of the following instruments relating to the
aircraft, executed and recorded with the Federal Aviation
Administration before the time the lien becomes effective:

(1)  Bill of sale;

(2)  Contract of conditional sale;

(3)  Conveyance; or

(4)  Mortgage or assignment of mortgage.

(b)  A [boat lien or] motor vehicle lien is subordinate only
to a security interest perfected as required by law, except in