(a) In the case of a mortgage or a deed of trust in which the lender assumes responsibility to the borrower to pay the property taxes on the mortgaged property by the collection of taxes through an expense account arrangement, the lender shall pay the taxes within 45 days after (1) the first due date, (2) receipt of the tax bill by the lender, or (3) the funds collected by the lender are sufficient to pay the amount of taxes and interest due, whichever occurs last.
(b) If a lender has sufficient funds available to pay the taxes, has received a copy of the tax bill, and fails to pay at the time as provided in this section, the lender shall pay the difference between the amount of taxes, interest, and penalty due if paid at the time as provided and the amount of taxes, interest, and penalty due at the time that the taxes, interest, and penalty are actually paid by the lender.
Structure Maryland Statutes
Title 7 - Mortgages, Deeds of Trust, and Vendor's Liens
Subtitle 1 - Mortgages and Deeds of Trust
Section 7-102 - Necessity for Recitation of Secured Amount; Priority of Future Advances
Section 7-103 - Presumption of Ownership of Notes
Section 7-104 - Priority of Purchase-Money Mortgage or Deed of Trust
Section 7-105.1 - Residential Property Foreclosure Procedure; Mediation
Section 7-105.2 - Notice of Foreclosure -- Procedure
Section 7-105.3 - Notice and Disclosure Requirements for Foreclosure Sales
Section 7-105.6 - Interest Payable After Sale in Certain Counties
Section 7-105.7 - Secured Party May Purchase at Sale
Section 7-105.8 - Rights and Remedies as Between Purchasers and Tenants
Section 7-105.9 - Effect of Foreclosure on Annual Crops
Section 7-105.10 - Effect of Order for Resale on Default
Section 7-105.11 - Notice to Occupants of Residential Property in Foreclosure Action
Section 7-105.12 - Right to Collect Rent From Bona Fide Tenant in Possession
Section 7-105.13 - Certificate of Vacancy or Certificate of Property Unfit for Human Habitation
Section 7-105.14 - Internet-Based Foreclosed Property Registry
Section 7-105.15 - Foreclosure -- Legislative Powers Regarding Notice or Regulations
Section 7-105.16 - Foreclosure Sale of Residential Property
Section 7-105.17 - Motion for Deficiency Judgment
Section 7-105.18 - Expedited Foreclosure for Vacant and Abandoned Property
Section 7-106 - Releases; Continuation Statements
Section 7-107 - Payment of Property Taxes by Lender
Section 7-108 - Incorporation by Reference
Section 7-109 - Lenders Required to Disburse Certain Purchase Money Loans at Closing
Section 7-112 - Priority of Refinance Mortgage Over Junior Liens