Maryland Statutes
Part I - Capital Improvement Grants Program
Section 10-508 - Procedure for Recovery; Temporary Lien

(a)    (1)    If a default described in § 10–507(a) of this subtitle is alleged, the Secretary of the Board of Public Works may file a civil action under this part in the circuit court of the county in which the property is located against the owner of the property and any other interested parties, including any transferor that the State wishes to make a party.
        (2)    The initial filing shall include sworn affidavits stating facts on which the allegations of default are based and a detailed justification of the amount claimed.
    (b)    (1)    If the court determines from the State’s initial filing that there is probable cause to believe that a default described in § 10–507(a) of this subtitle has occurred, the court shall authorize a temporary lien on the property pending full determination of the State’s claim.
        (2)    The temporary lien shall be 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 another amount that the court determines is reasonable.
    (c)    (1)    The temporary lien takes effect:
            (i)    on the date of the court order authorizing the lien if, within 10 days, the Secretary of the Board of Public Works records a notice of temporary lien in the land records of the county in which the property is located; or
            (ii)    if the Secretary fails to record the notice within 10 days, on the date the notice of temporary lien is recorded.
        (2)    While the temporary lien is in effect, the owner or any person who acquired an interest in the property after the State first made funds available under the Program may not take an action that would affect the title to the property or institute proceedings to enforce a security interest or other similar rights in the property, without the prior written consent of the State.
    (d)    (1)    The owner or any other interested party may obtain a release of the temporary lien at any time by filing with the court a bond securing the payment in full of the amount described in subsection (b)(2) of this section.
        (2)    The owner or other interested party may cause the release to be recorded in the land records of the county in which the property is located.

Structure Maryland Statutes