S.B. 329                                                         VETOES

FALSE OR MISLEADING WHEN MADE AND THAT LOANS OR OTHER EXTENSIONS OF
CREDIT OBTAINED UNDER A PLAN WERE NOT COMMERCIAL LOANS OR EXTENSIONS
OF CREDIT FOR A COMMERCIAL PURPOSE.

(D) UNLESS A CREDIT GRANTOR KNEW OR SHOULD HAVE KNOWN THAT A
STATEMENT OR CHARACTERIZATION DESCRIBED IN SUBSECTION (A) OR (B) OF THIS
SECTION WAS FALSE OR MISLEADING WHEN MADE, A CREDIT GRANTOR SHALL
HAVE NO LIABILITY UNDER THIS SUBTITLE IF LOANS OR OTHER EXTENSIONS OF
CREDIT UNDER A PLAN ARE ACTUALLY USED BY THE BORROWER OTHER THAN AS
COMMERCIAL LOANS OR OTHER EXTENSIONS OF CREDIT FOR, A COMMERCIAL
PURPOSE.

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.

- 3198 -