Ch. 535

1994 LAWS OF MARYLAND

(D)     A MORTGAGE IS A "CONSTRUCTION MORTGAGE" TO THE EXTENT IT
SECURES AN OBLIGATION INCURRED FOR THE CONSTRUCTION OF AN
IMPROVEMENT ON LAND INCLUDING THE ACQUISITION COST OF THE LAND, IF THE
RECORDED WRITING SO INDICATES; AND

(E)      "ENCUMBRANCE" INCLUDES REAL ESTATE MORTGAGES AND
OTHER LIENS ON REAL ESTATE AND ALL OTHER RIGHTS IN REAL ESTATE THAT ARE
NOT OWNERSHIP INTERESTS.

(2)      UNDER THIS ARTICLE A LEASE MAY BE OF GOODS THAT ARE FIXTURES
OR MAY CONTINUE IN GOODS THAT BECOME FIXTURES BUT NO LEASE EXISTS
UNDER THIS ARTICLE OF ORDINARY BUILDING MATERIALS INCORPORATED INTO
AN IMPROVEMENT ON LAND.

(3)      THIS ARTICLE DOES NOT PREVENT CREATION OF A LEASE OF FIXTURES
PURSUANT TO REAL ESTATE LAW.

(4)      THE PERFECTED INTEREST OF A LESSOR OF FIXTURES HAS PRIORITY
OVER A CONFLICTING INTEREST OF AN ENCUMBRANCER OR OWNER OF THE REAL
ESTATE IF:

(A)     THE LEASE IS A PURCHASE MONEY LEASE, THE CONFLICTING
INTEREST OF THE ENCUMBRANCER OR OWNER ARISES BEFORE THE GOODS
BECOME FIXTURES, THE INTEREST OF THE LESSOR IS PERFECTED BY A FIXTURE
FILING BEFORE THE GOODS BECOME FIXTURES OR WITHIN 10 DAYS THEREAFTER,
AND THE LESSEE HAS AN INTEREST OF RECORD IN THE REAL ESTATE OR IS IN
POSSESSION OF THE REAL ESTATE; OR

(B)  THE INTEREST OF THE LESSOR IS PERFECTED BY A FIXTURE FILING
BEFORE THE INTEREST OF THE ENCUMBRANCER OR OWNER IS OF RECORD, THE
LESSOR'S INTEREST HAS PRIORITY OVER ANY CONFLICTING INTEREST OF A
PREDECESSOR IN TITLE OF THE ENCUMBRANCER OR OWNER, AND THE LESSEE HAS
AN INTEREST OR RECORD IN THE REAL ESTATE OR IS IN POSSESSION OF THE REAL
ESTATE.

(5)      THE INTEREST OF A LESSOR OF FIXTURES, WHETHER OR NOT
ENCUMBRANCER OR OWNER OF THE REAL ESTATE IF:

(A)     THE FIXTURES ARE READILY REMOVABLE FACTORY OR OFFICE
MACHINES, READILY REMOVABLE EQUIPMENT THAT IS NOT PRIMARILY USED OR
LEASED FOR USE IN THE OPERATION OF THE REAL ESTATE, OR READILY
REMOVABLE REPLACEMENTS OF DOMESTIC APPLIANCES THAT ARE GOODS
SUBJECT TO A CONSUMER LEASE, AND BEFORE THE GOODS BECOME FIXTURES THE
LEASE CONTRACT IS ENFORCEABLE; OR

(B)     THE CONFLICTING INTEREST IS A LIEN ON THE REAL ESTATE
OBTAINED BY LEGAL OR EQUITABLE PROCEEDINGS AFTER THE LEASE CONTRACT
IS ENFORCEABLE; OR

(C)     THE ENCUMBRANCER OR OWNER HAS CONSENTED IN WRITING TO
THE LEASE OR HAS DISCLAIMED AN INTEREST IN THE GOODS AS FIXTURES; OR

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