§ 24-1006. Recovery of funds
West's Annotated Code of MarylandHealth--General
MD Code, Health - General, § 24-1006
§ 24-1006. Recovery of funds
(a) The State may recover from either the transferor or transferee or, in the case of a property that has ceased to be a “facility”, from the owner, an amount bearing the same ratio to the then current value of so much of the property as constituted an approved project as the amount of the State participation bore to the total eligible cost of the approved project, together with all costs and reasonable attorney’s fees incurred by the State in the recovery proceedings, if, within 30 years after completion of a project, a property for which funds have been paid under this subtitle:
(b)(1) Before the State makes any funds available for an approved project, the Department shall cause a notice of this right of recovery to be recorded in the land records of the county or Baltimore City in which the property is located.
(c)(1)(i) The Secretary of the Board of Public Works may file a civil claim under subsection (b) of this section, in the circuit court for the county or Baltimore City 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.
1. Sworn affidavits stating facts on which the allegations of default are based; and
2. A detailed justification of the amount claimed.
1. On the date of the court's authorization, if the Secretary of the Board of Public Works records a notice of temporary lien in the land records of the county or Baltimore City in which the property is located within 10 days after the court's authorization; or
2. On the date a notice of temporary lien is recorded.
1. Take any action that would affect the title to the property; or
2. Institute any proceedings to enforce a security interest or other similar rights in the property.
(4)(i) The owner of the property or any other interested party may obtain release of a temporary lien at any time by filing with the court a bond securing the payment in full of the State's claim and any additional amount necessary to cover the costs and reasonable attorney’s fees incurred by the State.
(d) Proceedings to determine the State's right to recover and the amount of its recovery under this subtitle shall have priority over other civil proceedings in the circuit courts.
(e)(1)(i) At the conclusion of full adversary proceedings on the issue of default and of any disputes over the amount of the State's recovery, the circuit court shall, if it finds that a default has occurred, issue a final judgment for the amount it finds to be recoverable by the State.
(2)(i) Except as the State may otherwise provide by a written subordination agreement, if the amount of the final judgment remains unpaid after 30 days following the court's final order, the final judgment shall constitute a lien on the property, superior to the lien or other interest of a mortgagee, pledgee, purchaser, or judgment creditor whose interest became perfected against third persons after the State first made funds available under this subtitle.
2. A lien takes effect on the 31st day following 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 or Baltimore City in which the property is located on or before the 41st day following the final order.
2. The recorded notice of a lien shall constitute notice of the release of a temporary lien.
(4) If the circuit court finds that there has been no default or if the full amount of the court's judgment is paid to the State within 30 days after the court's final order, a temporary lien then in effect shall be released immediately and the Secretary of the Board of Public Works shall cause the release to be recorded in the land records.
(f)(1) All funds recovered as a result of this right of recovery shall be deposited in the Annuity Bond Fund and applied to the debt service requirements of the State.
Credits
Added by Acts 2000, c. 678, § 1, eff. July 1, 2000.
MD Code, Health - General, § 24-1006, MD HEALTH GEN § 24-1006
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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