Section 12-1024 - Requirements upon loan repayment.
§ 12-1024. Requirements upon loan repayment.
(a) Applicability.-
(1) Except as provided in paragraph (2) of this subsection, this section applies only to a loan made by a credit grantor to a consumer borrower.
(2) This section does not apply to a loan to which § 3-105.1 of the Real Property Article applies.
(b) Obligations of credit grantor.- Within a reasonable time after a loan to a consumer borrower has been repaid in full and all other obligations under the agreement, note, or other evidence of the loan have been fulfilled, a credit grantor shall:
(1) (i) Indelibly mark with the word "paid" or "canceled" and return to the consumer borrower each agreement, note, or other evidence of the loan; or
(ii) Furnish the consumer borrower with a written statement that identifies the loan transaction and states that the loan has been paid in full; and
(2) Release any recorded mortgage, deed of trust, security agreement, or other lien securing the loan.
(c) Release.- The release shall be:
(1) In writing; and
(2) Prepared at the expense of the credit grantor.
(d) Recording.-
(1) If the credit grantor does not record the release, the credit grantor shall furnish the consumer borrower with the release in a recordable form.
(2) If the credit grantor records the release, the credit grantor shall furnish the consumer borrower with a copy of the release.
(e) Same - Fee.-
(1) If a fee is collected by a credit grantor for the recording of a release:
(i) The release shall be recorded by the credit grantor; and
(ii) Any portion of the fee not paid to a governmental entity for recording the release shall be refunded to the borrower.
(2) If a fee is not collected by a credit grantor for the recording of a release, the credit grantor is not obligated to record the release.
[1993, ch. 404, § 2; 2001, ch. 492.]