§ 10-509. Priority of proceedings; final judgment; lien

MD Human Svs Code § 10-509 (2019) (N/A)
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(a)    Proceedings to determine the State’s right to recover and the amount of its recovery under the Program have priority over other civil proceedings in the circuit court.

(b)    (1)    After a full adversary proceeding, if the court finds that a default described in § 10–507(a) of this subtitle has occurred, the court shall issue a final judgment for the amount the court finds to be recoverable by the State.

(2)    All parties involved in the default, including the owner of the property, shall be held jointly and severally liable to the State for the amount of the judgment.

(3)    If the court finds that a default described in § 10–507(a) of this subtitle has not occurred or if the court’s judgment is paid in full to the State within 30 days after the court’s final order, any temporary lien shall be released immediately and the Secretary of the Board of Public Works shall cause the release to be recorded in the land records of the county in which the property is located.

(4)    (i)    If the judgment remains unpaid for more than 30 days after the court’s final order, the amount shall be a lien on the property.

(ii)    Unless the State provides otherwise in a written subordination agreement, the lien is superior to a lien or other interest of any mortgagee, pledgee, purchaser, or judgment creditor whose interest became perfected against third persons after the State awarded a grant.

(c)    (1)    A lien issued under this section takes effect on the later of:

(i)    the 31st day after the court’s final order if the Secretary of the Board of Public Works records a notice of lien in the land records of the county in which the property is located on or before that day; or

(ii)    the date a notice of lien is recorded.

(2)    (i)    When the lien takes effect, any temporary lien is automatically and fully released.

(ii)    The recorded notice of the lien constitutes notice of the release of the temporary lien.

(d)    A lien issued under this part may be enforced and foreclosed in accordance with the Maryland Rules, except that the State or any agent appointed by the State to sell the property need not file a bond.

(e)    (1)    The owner or any other interested party may obtain release of a lien issued under this part by paying to the State the full amount of the judgment entered by the circuit court, and any interest that has accrued from the date of judgment.

(2)    On payment in full, the Secretary of the Board of Public Works shall cause a release to be recorded in the land records of the county in which the property is located.

(f)    Funds recovered under this section shall be deposited in the Annuity Bond Fund and applied to the debt service requirements of the State.

(g)    The Board of Public Works may waive the State’s right of recovery if the Board determines that there is good cause for releasing the transferor, transferee, or owner from this obligation.