Ch. 374

LAWS OF MARYLAND

certain time; and generally relating to the release of the
lien of certain mortgages and deeds of trust when payment
can be presumed.

BY repealing and reenacting, with amendments,

Article - Real Property

Section 7-106(c)

Annotated Code of Maryland

(1981 Replacement Volume and 1986 Supplement)

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

Article - Real Property

7-106.

(c) (1) If a mortgage or deed of trust remains unreleased
of record, the mortgagor or grantor OR ANY INTERESTED PARTY is
entitled to a presumption that it has been paid if:

(i) 12 years have elapsed     since the last

payment date called for in the instrument or the  maturity date as

set forth in the instrument OR ANY AMENDMENT OR    MODIFICATION TO
THE INSTRUMENT; or

(ii) If the last payment date or maturity date
cannot be ascertained from the record, 40 years have elapsed
since the date of record of the instrument.

(2) [The right to release of a mortgage or deed of;
trust shall be enforced by a bill in equity if the presumption of
payment is not rebutted. All parties to the instrument including
the mortgagee, trustee in a deed of trust, or any party named in
the instrument, shall be made parties to the bill and served or
summoned with notice as in other equity cases. If the court finds
the petitioner has a right to release, the clerk shall record the
release under the procedure set forth in § 3-105(b) and (c) of
this article relating to the clerk's duty to record releases.]

IF AN ACTION HAS NOT BEEN BROUGHT TO ENFORCE THE
LIEN OF A MORTGAGE OR DEED OF TRUST WITHIN THE TIME PROVIDED IN
PARAGRAPH (1) OF THIS SUBSECTION, AND NOTWITHSTANDING ANY OTHER
RIGHT OR REMEDY AVAILABLE EITHER AT LAW OR EQUITY, THE LIEN
CREATED BY THE MORTGAGE OR DEED OF TRUST SHALL TERMINATE, NO
LONGER BE ENFORCEABLE AGAINST THE PROPERTY, AND SHALL BE
EXTINGUISHED AS A LIEN AGAINST THE PROPERTY.

[(3) Recordation by the clerk operates as a release
of the mortgage or deed of trust].

- 1988 -