Ch. 634                                    1997 LAWS OF MARYLAND

WITNESS MY HAND AND NOTARIAL SEAL

NOTARY PUBLIC

MY COMMISSION EXPIRES:___________________"

7-104.

If property is sold and granted, and [at the same time] AS PART OF THE SAME
TRANSACTION the purchaser gives a mortgage or deed of trust to secure total or partial
payment of the purchase money, the mortgage or deed of trust shall be preferred to any
previous judgment or decree for the payment of money which is obtained against the
purchaser if it recites that the sum received is all or part of the purchase money of the
property OR OTHERWISE RECITES THAT IT IS A PURCHASE MONEY MORTGAGE OR
DEED OF TRUST. This section is applicable regardless of whether the mortgage or deed
of trust is given to the vendor of the property or to a third party who advances all or part
of the purchase money.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1997.

Approved May 22, 1997.

CHAPTER 634
(Senate Bill 825)

AN ACT concerning

Automobile Motor Vehicle Liability and Homeowners Insurance - Misrepresentations in
Applications—Cancellations of or Refusals to Renew Policies Premium Increases - Notice

to Insureds

FOR the purpose of authorizing an automobile liability insurer or a homeowners insurer
to rescind a policy if the application for the policy contains a certain
misrepresentation, omission, concealment of fact, or incorrect statement under
certain circumstances; permitting an automobile liability insurer or a homeowners
insurer to cancel or refuse to renew a policy subject only to certain prohibitions
under certain circumstances; permitting an automobile liability insurer or a
homeowners insurer to cancel or refuse to renew a policy at a certain rate under
certain circumstances; requiring the Maryland Insurance Commissioner to adopt
certain regulations concerning the rate at which an automobile liability insurer or a
homeowners insurer may cancel or refuse to renew a policy under certain
circumstances; and generally relating to misrepresentations in applications and
cancellations of or refusals to renew policies in automobile and homeowners
altering the content of a certain notice that a motor vehicle liability insurer must
send to an insured regarding the right of the insured to protest request a hearing on
certain proposed actions of the insurer; providing that in the case of a certain increase,
a certain dismissal is deemed to be a final determination of the Insurance Commissioner

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