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Session Laws, 2004
Volume 801, Page 628   View pdf image
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Ch. 146

2004 LAWS OF MARYLAND

(2) The recording of the notice shall not create any lien against the
property; however, SUBJECT TO SUBSECTION (A)(2) OF THIS SECTION, it shall
constitute notice to any potential transferee, potential creditor, or other interested
party of the possibility that the State may obtain a lien under this subtitle.

(e)     (1) In the event of a failure to complete the project or commence
operations of the facility as described in subsection (b) of this section, or in the event
of an alleged sale or transfer as described in subsection (c) of this section, or in the
event that a property is alleged to have ceased to be a "facility" as defined in this
subtitle, the Secretary of the Board of Public Works may authorize the Department to
file, in the circuit court of the county or Baltimore City in which the property is
located, a claim under this subtitle (styled as a civil action against the owner of the
property and any other interested parties, including any transferor that the State
wishes to make a party), together with a sworn affidavit stating facts on which the
allegations of default are based, as well as a detailed justification of the amount
claimed.

(2)     If the circuit court determines from the State's initial filing that
there is probable cause to believe that a default has occurred, the court shall
authorize a temporary lien on the property, in the amount of the State's claim, plus
any additional amount estimated to be necessary to cover the costs and reasonable
attorney's fees incurred by the State, or other amounts as the court determines to be
reasonable, pending full determination of the State's claim.

(3)     The temporary lien takes effect on the date of the court's
authorization if the State records a notice of temporary lien in the land records of the
county or Baltimore City in which the property is located within 10 days thereafter;
otherwise, the temporary lien takes effect on the date a notice of temporary lien is
recorded. While the temporary lien is in effect, neither the owner nor any person who
acquired an interest in the property after the State first made funds available in
connection with the property under this subtitle may take any action that would
affect the title to the property or institute any proceedings to enforce a security
interest or other similar rights in the property, without the prior written consent of
the State.

(4)     The owner of the property or any other interested party may obtain
release of this temporary lien at any time by filing with the court a bond securing the
payment in full of the State's claim any additional amount necessary to cover the
costs and reasonable attorneys' fees incurred by the State. The owner or other
interested party may cause the release to be recorded in the land records.

(f)      (1) Proceedings to determine the State's right to recover and the amount
of its recovery under this subtitle shall have priority over other civil proceedings in
the circuit courts.

(2) At the conclusion of full adversary proceedings on the issue of default
and on any disputes over the amount of the State's recovery, the circuit court shall, if
it finds that a default has occurred, issue a final judgment for the amount it finds to
be recoverable by the State. All parties involved in the default, including in every case
the owner of the property, shall be held jointly and severally liable to the State for the

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Session Laws, 2004
Volume 801, Page 628   View pdf image
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