Ch. 126

LAWS OF MARYLAND

defined in this Act, then the State may recover from either the
transferor or transferee or, in the case of a community mental
health facility, addiction facility, or developmental
disabilities facility that has ceased to be a "facility" as
defined in this Act, from the owner, an amount bearing the same
ratio to the then current value of so much of the property as
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 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 of 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 or 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

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