442

LAWS OF MARYLAND

Ch. 8

LESSEE FAILS OR REFUSES TO PAY RECORDATION TAX AFTER A DEMAND IS
MADE, THE PARTY OFFERING FOR RECORDATION THE ORIGINAL LEASE MAY:

(I)  PAY RECORDATION TAX; AND

(II)  SUE THE LESSEE TO RECOVER THE AMOUNT OF
RECORDATION TAX PAID, WITH INTEREST FROM THE DATE OF PAYMENT OF
RECORDATION TAX.

(4) RECORDATION TAX HAS TO BE PAID ON THE ORIGINAL
LEASE ONLY IF THE ORIGINAL LEASE WAS REQUIRED TO BE RECORDED
UNDER § 3-101 OF THE REAL PROPERTY ARTICLE.

(F)  PARTIAL DEBT.

(1)  EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS
SUBSECTION, IF THE TOTAL AMOUNT OF SECURED DEBT HAS NOT BEEN
INCURRED AT THE TIME OF RECORDING OR FILING THE INSTRUMENT OF
WRITING, THE RECORDATION TAX APPLIES ONLY TO THE PRINCIPAL AMOUNT
OF THE DEBT INCURRED AT THAT TIME.

(2)  EXCEPT AS PROVIDED IN PARAGRAPHS (3) AND (4) OF
THIS SUBSECTION, ON OR BEFORE 7 DAYS AFTER ANY ADDITIONAL DEBT IS
INCURRED AFTER RECORDING OR FILING AN INSTRUMENT OF WRITING, A
STATEMENT UNDER OATH OF THE AMOUNT OF ADDITIONAL DEBT SHALL BE
FILED WITH THE CLERK OF THE CIRCUIT COURT OR WITH THE DEPARTMENT,
AND THE RECORDATION TAX SHALL BE PAID ON THE ADDITIONAL DEBT.

(3)  IF THE ADDITIONAL DEBT UNDER PARAGRAPH (2) OF
THIS SUBSECTION IS APPLIED TO REPAYMENT OF THE DEBT PREVIOUSLY
INCURRED, THE RECORDATION TAX DOES NOT APPLY TO THE ADDITIONAL
DEBT.

(4)  IF THE BORROWER UNDER PARAGRAPH (1) OF THIS
SUBSECTION IS A CONSUMER BORROWER, AS DEFINED IN § 12-901 OF THE
COMMERCIAL LAW ARTICLE, THE RECORDATION TAX MAY BE COMPUTED AND
PAID ON THE AGGREGATE PRINCIPAL SUM, HOWEVER EXPRESSED, THAT IS
STATED TO BE SECURED BY THE INSTRUMENT OF WRITING, WITHOUT REGARD
TO THE AMOUNT OF SECURED DEBT ACTUALLY INCURRED.

(5)  WHEN CREDIT IS ORIGINALLY EXTENDED TO A CONSUMER
BORROWER, THE LENDER SHALL INFORM THE BORROWER THAT:

(I)  THE BORROWER MAY PAY THE RECORDATION TAX
UNDER PARAGRAPHS (1) AND (2) OR PARAGRAPH (4) OF THIS SUBSECTION;
AND

(II)  IF THE BORROWER ELECTS TO PAY THE
RECORDATION TAX AS ADDITIONAL DEBT IS INCURRED UNDER PARAGRAPH
(2) OF THIS SUBSECTION, THE CONSUMER BORROWER IS RESPONSIBLE FOR
PAYMENT OF THE ADDITIONAL TAX AND ANY PENALTY PROVIDED BY §
14-1012 OF THIS ARTICLE.

(G)  CORPORATE AND PARTNERSHIP TRANSFERS.