Section 12-924 - Release of lien securing extension of credit.
§ 12-924. Release of lien securing extension of credit.
(a) Applicability.-
(1) Except as provided in paragraph (2) of this subsection, this section applies only to a plan between a credit grantor and a consumer borrower under which a credit grantor has taken any property as security for credit extended under the plan.
(2) This section does not apply to a loan to which § 3-105.1 of the Real Property Article applies.
(b) Release; timing.- A credit grantor shall release any recorded mortgage, deed of trust, security agreement, or other lien securing the extension of credit within a reasonable time after:
(1) The outstanding unpaid indebtedness under a plan has been paid in full;
(2) There are no further obligations of the credit grantor or the consumer borrower under the plan; and
(3) The account under the plan is closed.
(c) Nature of 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.]