Ch. 211

LAWS OF MARYLAND

(a)  Before the State makes any funds available for an
approved project, 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. 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 shall take 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 shall take 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.

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