(a)   If, within 30 years after completion of a project, a juvenile program,
with respect to which funds have been paid under this title is sold or
transferred to any person, agency, or organization that would not
qualify as an applicant under this title, or that is not approved as a
transferee by the Board of Public Works, or if, within the same period,
such a juvenile program ceases to be a "facility" as defined in
this title, the State may recover from either the transferor or
transferee or, in the case of a juvenile program that has ceased to be
a facility as defined in this title, 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 attorneys' fees incurred by the
State in the recovery proceedings.
  (b)   (1)   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 before the State makes any funds available for
the approved project.
    (2)   The recording of the notice:
      (i)   Does not create any lien against the property; but
      (ii)   Shall constitute notice to any potential transferee, potential
creditor, or other interested party of the possibility that the State
may obtain a lien under this title.
  (c)   (1)   In the event of an alleged sale or transfer as described above or in
the event that a property is alleged to have ceased to be a facility as
defined in this title, the Secretary of the Board of Public Works may
file, in the circuit court for the county or Baltimore City in which
the property is located, a claim under this title, styled as a civil
action against the owner of the property and any other interested
parties, including any transferor that the State wishes to make a
party, together with sworn affidavits stating facts on which the
allegations of default are based, as well as a detailed justification
of the amount claimed.
    (2)   If the circuit court determines from the State's initial filing that
there is probable cause to believe that a default has occurred, the
court shall authorize a temporary lien on the property, in the amount
of the State's claim, plus any additional amount estimated to be
necessary to cover the costs and reasonable attorney's fees incurred
by the State, or in such other amount as the court determines to be
reasonable, pending full determination of the State's claim.
    (3)   The temporary lien takes effect 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 thereafter;
otherwise, the temporary lien takes effect on the date a notice of
temporary lien is recorded. While the temporary lien is in effect,
neither the owner nor any person who acquired an interest in the
property after the State first made funds available in connection with
the property under this title may take any action that would affect the
title to the property or institute any proceedings, to enforce a
security interest or other similar rights in the property without the
prior written consent of the State.
    (4)   The owner of the property or any other interested party may obtain
release of this 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
attorneys' fees incurred by the State. The owner or other interested
party may cause the release to be recorded in the land records.
  (d)   (1)   Proceedings to determine the State's right to recover and the amount
of its recovery under this title shall have priority over other civil
proceedings in the circuit courts.
    (2)   At the conclusion of full adversary proceedings on the issue of default
and on 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.
All parties involved in the default, including in every case the owner
of the property, shall be held jointly and severally liable to the
State for the amount of the judgment. This amount, if it remains unpaid
after the expiration of 30 days following the court's final order,
shall be a lien on the property, superior (except as the State may by
written subordination agreement provide otherwise) to the lien or other
interest of any mortgagee, pledge, purchaser, or judgment creditor
whose interest became perfected against third persons after the State
first made funds available in connection with the property under this
title.
    (3)   This 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; otherwise, the lien takes effect on the date a notice of lien is
recorded. At the time this lien takes effect, any temporary lien then
in effect shall be automatically and fully released, and the recorded
notice of this lien shall constitute notice of the release of the
temporary lien.
    (4)   This lien may be enforced and foreclosed in accordance with the
procedures prescribed in the Maryland Rules, except that neither the
State nor any agent appointed by the State to sell the property need
file a bond.
    (5)   The owner or any other interested party may obtain release of this lien
at any time by paying to the State the full amount of the judgment
rendered by the circuit court, together with interest from the date of
judgment. On payment in full, the Secretary of the Board of Public
Works shall cause a release to be recorded in the land records.
    (6)   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, any 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.
  (e)   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. 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.
}
}
|