WILLIAM DONALD SCHAEFER, Governor

Ch. 404

12-924.

(A)     THIS SECTION APPLIES ONLY TO A PLAN BETWEEN A CREDIT GRANTOR
AND A CONSUMER BORROWER UNDER WHICH A CREDIT GRANTOR HAS TAKEN ANY
PROPERTY AS SECURITY FOR CREDIT EXTENDED UNDER THE PLAN.

(B)     A CREDIT GRANTOR SHALL RELEASE ANY RECORDED MORTGAGE, DEED
OF TRUST, SECURITY AGREEMENT, OR OTHER LIEN SECURING THE EXTENSION OF
CREDIT WHEN WITHIN A REASONABLE TIME AFTER:

(1)      THE OUTSTANDING UNPAID INDEBTEDNESS UNDER A PLAN HAS
BEEN PAID IN FULL;

(2)      THERE ARE NO FURTHER OBLIGATIONS OF THE CREDIT GRANTOR
OR THE CONSUMER BORROWER UNDER THE PLAN; AND

(3)      THE ACCOUNT UNDER THE PLAN IS CLOSED.

(C)  THE RELEASE SHALL BE:

(1)      IN WRITING; AND

(2)      PREPARED AT THE EXPENSE OF THE CREDIT GRANTOR.

(D)     (1) IF THE CREDIT GRANTOR DOES NOT RECORD THE RELEASE, THE
CREDIT GRANTOR SHALL FURNISH THE CONSUMER BORROWER WITH THE RELEASE
IN A RECORDABLE FORM.

(2) IF THE CREDIT GRANTOR RECORDS THE RELEASE, THE CREDIT
GRANTOR SHALL FURNISH THE CONSUMER BORROWER WITH A COPY OF THE
RELEASE.

(E)     (1) IF A FEE IS COLLECTED BY A CREDIT GRANTOR FOR THE
RECORDING OF A RELEASE:

(I)      THE RELEASE SHALL BE RECORDED BY THE CREDIT
GRANTOR; AND

(II)     ANY PORTION OF THE FEE NOT PAID TO A GOVERNMENTAL
ENTITY FOR RECORDING THE RELEASE SHALL BE REFUNDED TO THE BORROWER.

(2) IF A FEE IS NOT COLLECTED BY A CREDIT GRANTOR FOR THE
RECORDING OF A RELEASE, THE CREDIT GRANTOR IS NOT OBLIGATED TO RECORD
THE RELEASE.

12-1001.

(d) "Consumer borrower" means an individual receiving a loan or other extension
of credit under this subtitle for personal, [household] HOUSEHOLD, or family purposes
or an individual receiving a commercial loan or other extension of credit for any
commercial purpose not in excess of $75,000, secured by [owner-occupied real property
having a dwelling on it designated principally as a residence with accommodations for not
more than 4 families] RESIDENTIAL REAL PROPERTY.

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