ROBERT L. EHRLICH, JR., Governor                            S.B. 678

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
BEEN NO FURTHER COMMITMENT BY THE HOLDER TO MAKE AN ADVANCE OR BY
THE BORROWER TO INCUR AN OBLIGATION SECURED BY THE MORTGAGE OR DEED
OF TRUST, the holder shall furnish the borrower with:

(i) The release in a recordable form; and

(ii) A notice disclosing the location where the release should be
recorded and the estimated amount of any fee required to be paid to a governmental
entity in order to record the release.

(2) If the holder records the release, the holder shall furnish the
borrower with a copy of the release.

(f)      (1) A fee for the recording of a release may be collected by the holder
from the borrower subject to this subsection.

(2) If a fee is collected for the recording of a release:

(i) The release shall be recorded by the holder; and

(ii) Any portion of the fee not paid to a governmental entity for
recording the release that exceeds $15 shall be refunded to the borrower.

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