Ch. 348                                    2003 LAWS OF MARYLAND

(ii) "Holder" does not include a responsible person.

(4)     "Loan" means all indebtedness and other obligations of a borrower
secured by a mortgage or deed of trust.

(5)     "Mortgage or deed of trust" means a mortgage, deed of trust, security
agreement, or other lien secured by a borrower's principal dwelling.

(6)     (i) "Responsible person" means a person other than the holder or
the holder's designee who has undertaken responsibility for filing a release of a
mortgage or deed of trust with the governmental agency charged with recording the
release.

(ii) "Responsible person" includes:

1.       The person responsible for the disbursement of funds in
connection with the grant of title to the property; and

2.       An attorney or other person responsible for preparing the
HUD-1 settlement statement required under the federal Real Estate Settlement
Procedures Act.

(b)     (1) Except as provided in paragraph (2) of this subsection, this section
does not apply to a mortgage or deed of trust given to secure or guaranty a commercial
loan as defined in § 12-101 of the Commercial Law Article.

(2) This section applies to a mortgage or deed of trust given by an
individual to secure a commercial loan to that individual if the commercial loan was
not in excess of $75,000 and was secured by the borrower's principal dwelling.

(c)     Within a reasonable time after a loan secured by an existing mortgage or
deed of trust has been paid in full and there is no further commitment by the holder
to make an advance or by the borrower to incur an obligation secured by that
mortgage or deed of trust, the holder shall:

(1)     (i) Indelibly mark with the word "paid" or "canceled" and return to
the borrower each agreement, note, or other evidence of the loan secured by that
mortgage or deed of trust; or

(ii) Furnish the borrower with a written statement that identifies
the loan secured by that mortgage or deed of trust and states that the loan has been
paid in full; and

(2)     Release any recorded mortgage or deed of trust securing the loan.

(d)     The release shall be:

(1)     In writing; and

(2)     Prepared at the expense of the holder.

(e)     (1) If the holder does not record the release or provide the release to a
responsible person for recording WITHIN 45 DAYS AFTER A LOAN SECURED BY AN
EXISTING MORTGAGE OR DEED OF TRUST HAS BEEN PAID IN FULL AND THERE HAS

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