Title 13. Vehicle Laws -- Certificates of Title and Registration of Vehicles — Subtitle 2. Security Interests

Any lien given by statute or rule of law to a supplier of services or materials for a vehicle;

Any lien given by statute to the United States, this State, or any political subdivision of this State;

Any security interest in a vehicle during any period in which the vehicle is inventory held for sale or lease by a person or leased by that person as lessor and that person is in the business of selling vehicles;

Any lien arising out of an attachment of a vehicle;

Any security interest claimed on proceeds, as that term is defined in Title 9 of the Commercial Law Article (Maryland Uniform Commercial Code -- Secured Transactions), if the original security interest did not have to be noted on the certificate of title in order to be perfected; or

Any vehicle for which a certificate of title is not required under this title.

A security interest is perfected by:

The security interest is perfected at the time of the delivery and payment.

If a vehicle already is subject to a security interest when brought into this State, the validity of that security interest in this State is determined by the law (including the conflict of law rules) of the jurisdiction where the vehicle was located when the security interest attached, subject to the provisions of this subsection.

If, at the time the security interest attached, the parties to the transaction understood that the vehicle would be kept in this State, and if, within 30 days after the security interest attached, the vehicle was brought into this State for purposes other than transportation through this State, the validity of the security interest in this State is determined by the laws of this State.

If, before the vehicle was brought into this State, the security interest already was perfected under the laws of the jurisdiction where the vehicle was located when the security interest attached, the following rules apply:

If, before the vehicle was brought into this State, the security interest was not perfected under the law of the jurisdiction in which the vehicle was located when the security interest attached, it may be perfected in this State, in which case perfection dates from the time of perfection in this State.

At the time of delivery of the documents required by this section to the Administration, the secured party shall pay to the Administration the same filing fee as is required for perfection of the security interest under § 13-202 of this subtitle.

The security interest is perfected at the time of its creation, if the delivery and payment to the Administration are completed within 10 days of the date of its creation. Otherwise, the security interest is perfected at the time of the delivery and payment.

Endorse the existing certificate of title or a new certificate issued by it with the name and address of each secured party; and

Deliver the endorsed certificate of title to the owner named on it.

The assignee shall deliver to the Administration the certificate of title, if available, and an assignment by the secured party named in the certificate of title in the form that the Administration requires, accompanied by the same filing fee as is required for perfection of the security interest under § 13-202 of this subtitle.

The assignee’s security interest is perfected at the time of its creation, if the delivery and payment to the Administration are completed within 10 days of the date of its creation. Otherwise, the security interest is perfected at the time of the delivery and payment.

The owner;

The Administration; and

A dealer licensed under Title 15, Subtitle 3 of this article who, on behalf of the owner, pays off the security interest if the owner authorizes the secured party in writing to deliver a copy of the release to the dealer.

If, after notice to all interested parties and a hearing, the Administration determines that an indebtedness does not constitute a security interest, it shall:

Any person aggrieved by the decision of the Administration may appeal in accordance with the provisions of the Administrative Procedure Act.

If an omission or error in the filing, recording, or indexing of a security interest has been made by an employee of the Administration in the course of employment and, as a result of the omission or error, any interested person has sustained loss or damage, the person may file a claim with the Administration for payment of the loss or damage out of the Assurance Fund maintained under § 13-209 of this subtitle. The claim for payment shall include a request for a hearing on the matter and shall be made in the manner and on the form that the Administration requires.

A claim for payment under this section may not be made unless it is filed with the Administration within 3 years from the date the cause of action arose.

The amount of payment made for a claim under this section may not exceed $100,000.

Payment for a single claim may not be made from both the Assurance Fund and from the State Insurance Trust Fund under § 12-104 of the State Government Article.

Order that any loss or damage sustained by the claimant be paid out of the Assurance Fund, subject to the limitations set forth in this section; or

Order that the claim be dismissed and deny payment of the claim.

Any aggrieved party to a hearing under this section may appeal from the decision of the Administration as follows:

The circuit court to which an appeal is made under this section has jurisdiction to examine the facts of the case and to determine if the claimant is entitled under this section to recover for any loss or damage. The Administration shall pay the amount of any judgment recovered against the Assurance Fund up to the amount of the security interest to which the claim relates.

Any loss or damage that exceeds the amount of the security interest to which the claim relates; or

Any loss or damage that results from: