Ch. 218

1997 LAWS OF MARYLAND

2. A fixture.

(ii) "Consumer goods" does not include money, documents,
instruments, accounts, chattel paper, or general intangibles.

(2) This subsection applies to tangible personal property securing a loan

that:

(i) Has been repossessed by the credit grantor; or

(ii) Is in actual or constructive possession of the credit grantor where
the perfection of the security interest in the property depends on the possession of the
property.

(3) In the case of a purchase money security interest in consumer goods, if a
consumer borrower has paid 60 percent of the cash price or 60 percent of the loan in the
case of another security interest in consumer goods and, after default, has not signed a
statement renouncing or modifying the consumer borrower's rights under this subsection,
a credit grantor who has repossessed the consumer goods must take reasonable action
within 90 days after the repossession to commence disposal of them in the manner
provided under subsection (j) of this section.

(4) (i) In any other case involving tangible personal property securing a
loan, a credit grantor may, after default, propose to retain the property in full satisfaction
of the obligations of the borrower under the loan.

(ii) If, as authorized by subparagraph (i) of this paragraph, a credit
grantor proposes to retain property in full satisfaction of the obligations of the borrower
under the loan, the credit grantor shall send written notice of the proposal to:

1. The consumer borrower; and

2. Except in the case of consumer goods, any other person who
has a security interest in the property and who:

A. Has duly filed a financing statement indexed in the name of
the consumer borrower in this State; or

B. Is known by the credit grantor to have a security interest in

the property.

(iii) 1. If the consumer borrower or other person entitled to receive
notification objects in writing within 30 days from the sending of the notification, the
credit grantor must take reasonable action to dispose of the property in the manner
provided under subsection (j) of this section.

2. In the absence of written objection, the credit grantor may
retain the property in full satisfaction of the outstanding unpaid indebtedness under the
loan.

(5) If despite complying with the requirements of this section there is no
sale of tangible personal property securing a loan under subsection (j) of this section:

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