§ 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) Recording -- 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.

HISTORY: 1993, ch. 404, § 2; 2001, ch. 492.