Md. Code, Commercial Law, Title 16

Md. Code, Commercial Law, Title 16
in effect

Md. Code, Commercial Law § 16-101

(a) In this title the following words have the meanings indicated. (b) “County” includes Baltimore City. (c) “Owner” includes a person lawfully in possession. (d) “Person” includes the State, any county, municipal corporation, or other political subdivision of the State, or any of their units, or an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.

Md. Code, Commercial Law § 16-201

(a) In this subtitle the following words have the meanings indicated. (b) “Aircraft” includes any part of an aircraft. (c) “Boat” includes any part of a boat. (d) “Clerk of the court” means the clerk of the circuit court of a county. (e) “Mobile home” has the meaning stated in § 8A–101(c) of the Real Property Article. (f) (1) “Motor vehicle” has the meaning stated in Title 11 of the Transportation Article. (2) “Motor vehicle” includes any part of a motor vehicle. (g) “Park owner” has the meaning stated in § 8A–101(f) of the Real Property Article. (h) “Property” means any aircraft, boat, mobile home, or motor vehicle. (i) “Resident” has the meaning stated in § 8A–101(j) of the Real Property Article.

Md. Code, Commercial Law § 16-202

(a) (1) Any person who, with the consent of the owner, has custody of an aircraft and who, at the request of the owner, provides a service to or materials for the aircraft, has a lien on the aircraft for any charge incurred for any: (i) Inspection, maintenance, repair, servicing, or rebuilding; (ii) Storage, parking, handling, or tiedown; or (iii) Parts, accessories, materials, or supplies. (2) The operator of any airport on which an aircraft lands or which is otherwise used by an aircraft has a lien on the aircraft for any landing fee, flight fee, or other charge so incurred. (3) A lien is created under this subsection when any charges giving rise to the lien are incurred. (b) (1) Any person who, with the consent of the owner, has custody of a boat and who, at the request of the owner, provides a service to or materials for the boat, has a lien on the boat for any charge incurred for any: (i) Repair, rebuilding, maintenance, servicing, or wet or dry wharfage; (ii) Storage; or (iii) Parts or accessories. (2) A lien is created under this subsection when any charges giving rise to the lien are incurred. (c) (1) Any person who, with the consent of the owner, has custody of a motor vehicle and who, at the request of the owner, provides a service to or materials for the motor vehicle, has a lien on the motor vehicle for any charge incurred for any: (i) Repair or rebuilding; (ii) Storage; or (iii) Tires or other parts or accessories. (2) A lien is created under this subsection when any charges set out under paragraph (1) of this subsection giving rise to the lien are incurred. (d) (1) A park owner has a lien against a resident’s mobile home, if the park owner obtains a judgment against the resident under Title 8A, Subtitle 17 of the Real Property Article, and the resident fails to yield and render possession of the premises as ordered by the court. (2) A lien under this subtitle shall be: (i) Stayed if the resident files an appeal in accordance with Title 8A, Subtitle 17 of the Real Property Article; and (ii) Extinguished if the resident redeems the premises in accordance with Title 8A, Subtitle 17 of the Real Property Article. (3) A lien is created under this subsection when the resident fails to yield and render possession of the premises as ordered by the court.

Md. Code, Commercial Law § 16-203

(a) The lienor may retain possession of the property subject to the lien until: (1) The charges which give rise to the lien are paid; or (2) The lien is otherwise discharged in accordance with this subtitle. (b) (1) (i) Except as provided in subparagraph (ii) of this paragraph, within 30 days after the creation of a lien under this subtitle, including a lien created under § 16-207(c) of this subtitle, the lienor shall send notice of the lien by registered or certified mail to all holders of perfected security interests in the property who: 1. Are known to the lienor; or 2. Can be identified through a search of the public records where filings are made to perfect security interests in the property. (ii) For a lien created under § 16-202(b) of this subtitle, the lienor shall send the notice required under subparagraph (i) of this paragraph within 45 days after the creation of the lien. (2) (i) Subject to subparagraph (ii) of this paragraph, the notice required under paragraph (1) of this subsection shall be sent to the address shown on the document that creates or otherwise gives notice of the perfected security interest. (ii) For a lien created under this subtitle in a motor vehicle registered in this State, the notice required under paragraph (1) of this subsection may be sent to the addresses of all holders of perfected security interests in the motor vehicle that are listed in the certified records issued to the lienor by the Motor Vehicle Administration. (3) The lienor shall send the notice required under paragraph (1) of this subsection prior to publishing and sending the notice required under § 16-207(b) of this subtitle.

Md. Code, Commercial Law § 16-204

Surrender or delivery of the property subject to the lien discharges that lien against a third person who is without notice of the lien, but does not discharge the lien against the owner or against a third party who has notice of the lien.

Md. Code, Commercial Law § 16-205

(a) An aircraft lien is subordinate only to the rights of the holder of any of the following instruments relating to the aircraft, executed and recorded with the Federal Aviation Administration before the time the lien becomes effective: (1) Bill of sale; (2) Contract of conditional sale; (3) Conveyance; or (4) Mortgage or assignment of mortgage. (b) A motor vehicle lien is subordinate only to a security interest perfected as required by law, except in the case of a motor vehicle sold under § 16-207 of this subtitle. (c) (1) In this subsection, “preferred ship mortgage” means a preferred mortgage as defined in 46 U.S.C. § 31322 on a vessel of the United States that is filed in accordance with 46 U.S.C. §§ 31321 through 31330. (2) (i) A boat lien is subordinate to a preferred ship mortgage that is filed with the Secretary of Transportation before the boat is sold under § 16-207 of this subtitle. (ii) Except in the case of a boat sold under § 16-207 of this subtitle, a boat lien is subordinate to a security interest perfected as required by law. (d) A mobile home lien is subordinate only to a security interest perfected as required by law, except in the case of a mobile home sold under § 16-207 of this subtitle.

Md. Code, Commercial Law § 16-206

(a) (1) If the owner of property subject to a lien disputes any part of the charge for which the lien is claimed, he may institute appropriate judicial proceedings. (2) Institution of the proceedings stays execution under the lien until a final judicial determination of the dispute. (b) (1) If the owner of property subject to a lien disputes any part of the charge for which the lien is claimed, he immediately may repossess his property by filing a corporate bond for double the amount of the charge claimed. (2) The bond shall be filed with and is subject to the approval of the clerk of the court of the county where the services or materials for which the lien is claimed were provided. (3) The bond shall be conditioned on: (i) Full payment of the final judgment of the claim, together with interest; (ii) All costs incident to the bringing of suit; and (iii) All cost and expenses which result from the enforcement of the lien and are incurred before the lienor was notified that the bond was filed. (4) Filing of the bond stays execution under the lien until final judicial determination of the dispute. (5) If service of process by a lienor on the owner is returned non est after filing of a bond, service may be made by publication as in the case of a suit against a nonresident. (6) If suit is not instituted by the lienor within six months after the bond is filed, the bond is discharged.

Md. Code, Commercial Law § 16-207

(a) If the charges which give rise to a lien are due and unpaid for 30 days and the lienor is in possession of the property subject to the lien, the lienor may sell the property to which the lien attaches at public sale. The sale shall be in a location convenient and accessible to the public and shall be held between the hours of 10 a.m. and 6 p.m. (b) (1) The lienor shall publish notice of the time, place, and terms of the sale and a full description of the property to be sold once a week for the two weeks immediately preceding the sale in one or more newspapers of general circulation in the county where the sale is to be held. (2) In addition, the lienor shall send the notice by registered or certified mail at least 10 days before the sale to: (i) The owner of the property, all holders of perfected security interests in the property and, in the case of a sale of a motor vehicle or mobile home, the Motor Vehicle Administration; (ii) The person who incurred the charges which give rise to the lien, if the address of the owner is unknown and cannot be ascertained by the exercise of reasonable diligence; or (iii) “General delivery” at the post office of the city or county where the business of the lienor is located, if the address of both the owner and the person who incurred the charges is unknown and cannot be ascertained by the exercise of reasonable diligence. (c) If a motor vehicle or mobile home which is subject to a lien is delivered by the lienor to the possession of a third party for storage, and the charges for storage are due and unpaid for 30 days or more, the third party holder is deemed to hold a perfected security interest in the motor vehicle or mobile home notwithstanding § 13–202 of the Transportation Article and may sell the motor vehicle or mobile home in the same manner as the lienor under this section if he has first published and sent notice as required of the lienor under this subtitle. (d) (1) Except as provided in § 13–110 of the Transportation Article, the Motor Vehicle Administration shall issue a title, free and clear of any lien, to the purchaser of any motor vehicle or mobile home sold under this section, if the holder of the lien on the motor vehicle or mobile home submits to the Motor Vehicle Administration a completed application for a certificate of title with: (i) A copy of the newspaper publication required by subsection (b) of this section; (ii) A copy of the registered or certified letter required under subsection (b) of this section to be sent to holders of perfected security interests in the motor vehicle or mobile home and the Motor Vehicle Administration, and the return card; (iii) A copy of the registered or certified letters required by subsection (b) of this section to be sent to the owner of the motor vehicle or mobile home, and the return card; (iv) If applicable, a written statement from the lienor that the lienor stored the vehicle in accordance with an agreement with an insurer; (v) An auctioneer’s receipt; (vi) If applicable, certification by holders of perfected security interests; (vii) In the case of mobile homes manufactured after 1976 and motor vehicles, a pencil tracing of the vehicle identification number or a statement certifying the vehicle identification number; and (viii) Any other reasonable information required in accordance with regulations adopted by the Administration. (2) The Department of Natural Resources shall issue a title, free and clear of any liens, to the purchaser of any boat sold under this section. (e) (1) If the notice required under § 16–203(b) of this subtitle was sent, the proceeds of a sale under this section shall be applied, in the following order, to: (i) The expenses of giving notice and holding the sale, including reasonable attorney’s fees; (ii) Subject to subsection (f) of this section, storage fees of the third party holder; (iii) The amount of the lien claimed exclusive of any storage fees except as provided in subsection (f)(2) of this section; (iv) A purchase money security interest; and (v) Any remaining secured parties of record who shall divide the remaining balance equally if there are insufficient funds to completely satisfy their respective interests, but not to exceed the amount of a security interest. (2) Except as provided in paragraph (3) of this subsection, if the notice required under § 16–203(b) of this subtitle was not sent, the proceeds of a sale under this section shall be applied, in the following order, to: (i) A purchase money security interest; (ii) All additional holders of perfected security interests in the property; (iii) The expenses of giving notice and holding the sale, including reasonable attorney’s fees; (iv) Subject to subsection (f) of this section, storage fees of the third party holder; (v) The amount of the lien claimed exclusive of any storage fees except as provided in subsection (f)(2) of this section; and (vi) Any remaining secured parties of record who shall divide the remaining balance equally if there are insufficient funds to completely satisfy their respective interest, but not to exceed the amount of a security interest. (3) For a motor vehicle lien created under this subtitle, if the notice required under § 16–203(b) of this subtitle was not sent: (i) The proceeds of a sale under this section shall be applied in the order described in paragraph (1) of this subsection; and (ii) The amount of the lien claimed in paragraph (1)(iii) of this subsection may not include any amount for storage charges incurred or imposed by the lienor. (4) After application of the proceeds in accordance with paragraph (1) or (2) of this subsection, any remaining balance shall be paid to the owner of the property. (f) (1) If property is stored, storage fees of the third party holder may not exceed $5 per day or a total of $300. (2) The exclusion or limitation of any storage fees as provided in subsection (e)(1)(iii) of this section and paragraph (1) of this subsection does not apply to any person who conducts auctions as a business in this State, and is required to maintain records under § 15–113 of the Transportation Article, and that person is also exempt from the maximum storage fee limits under this subsection. (3) The notice requirements of § 16–203(b) of this subtitle do not apply when: (i) The lienor conducts auctions as a business in this State and is required to maintain records under § 15–113 of the Transportation Article; and (ii) The lien arises out of that business.

Md. Code, Commercial Law § 16-208

(a) If the owner of property subject to a lien institutes an action of replevin and establishes a right to the issuance of a writ but for the defendant’s alleged lien under this subtitle, the court shall issue the writ. (b) (1) In the trial of the replevin action, the court shall determine: (i) The amount of the lien claim, if any; and (ii) The amount of any expenses properly incurred or accrued before the trial, including storage and advertising. (2) If judgment is for the defendant: (i) It may include reasonable attorney’s fees; and (ii) It shall be either for the property replevied or for the amounts determined in accordance with paragraph (1) of this subsection. (3) The defendant has the burden of proof to establish his lien claim to the same extent as if he were a plaintiff in an action to secure judgment on an open account.

Md. Code, Commercial Law § 16-209

The remedies provided in this subtitle for enforcing a lien do not: (1) Preclude use of any other remedy allowed by law for enforcement of a lien against personal property; or (2) Bar a right to recover any part of the lienor’s claim that is not paid by proceeds from the sale of the property subject to the lien.

Md. Code, Commercial Law § 16-302

(a) Any artisan who, with the consent of the owner, has possession of goods for repair, mending, improving, dry cleaning, laundering, or other work which includes storage of goods in the case of a dry cleaner or launderer, has a lien on the goods for the costs of the work done. (b) If the costs which give rise to the lien are due and unpaid 90 days after the work is completed or in the case of a dry cleaner or launderer goods are due to be retrieved from storage, the artisan may sell the goods to which the lien attaches at public or private sale. The artisan, launderer, or dry cleaner shall post a notice in a conspicuous place on the premises to the effect that clothing must be retrieved in 90 days or it will be subject to sale, after notice. (c) The artisan shall give at least 30 days notice before any sale or disposal to the owner by mailing the notice to the owner at his last known address. If the owner’s address is unknown, the notice may be given by: (1) Posting it on the door of the courthouse or on a bulletin board in the immediate vicinity of the door of the courthouse of the county in which the work was done; (2) Publishing it once a week for two successive weeks in one or more newspapers of general circulation in the county in which the work was done; or (3) (i) Posting it at the artisan’s place of business in a plain and prominent manner, provided that the notice is imprinted on a sign that is clearly visible and states that the goods may be sold on or after 90 days from the day the work is completed; and (ii) Imprinting the notice on the receipt or invoice given to the owner or the owner’s agent. (d) (1) The proceeds of the sale shall be applied, in the following order, to: (i) The expenses of the sale; and (ii) The amount of the lien claim. (2) After application of the proceeds in accordance with paragraph (1) of this subsection, any remaining balance shall be paid to the owner of the goods. (e) As an alternative to (b) and (c) above, if the costs which give rise to the lien are due and unpaid 6 months after dry-cleaned or laundered goods are due to be retrieved from storage, the dry cleaner or launderer may dispose of the goods in any manner. The artisan, launderer, or dry cleaner shall post a notice in a conspicuous place on the premises to the effect that clothing must be retrieved in 6 months or the goods may be disposed of.

Md. Code, Commercial Law § 16-401

(a) The owner or operator of a livery stable or other establishment who gives care or custody to any livestock has a lien on the livestock for any reasonable charge incurred for: (1) Board and custody; (2) Training; (3) Veterinarians’ and blacksmiths’ services; and (4) Other proper maintenance expenses. (b) If the charges which give rise to the lien are due and unpaid for 30 days and the lienor is in possession of the livestock, the lienor may sell the livestock to which the lien attaches at public sale. (c) (1) The lienor shall publish notice of the sale once a week for two successive weeks in one or more newspapers of general circulation in the county where the livestock is located. (2) In addition, the lienor shall send notice by registered or certified mail at least 30 days before the sale to the owner of the livestock at his last known address. If the owner’s address is unknown, the notice may be given by posting it on the door of the courthouse or on a bulletin board in the immediate vicinity of the door of the courthouse of the county where the livestock is located. (d) (1) The proceeds of the sale shall be applied, in the following order, to: (i) The expenses of the sale; and (ii) The amount of the lien claim. (2) After application of the proceeds in accordance with paragraph (1) of this subsection, any remaining balance shall be paid to the owner of the livestock.

Md. Code, Commercial Law § 16-502

(a) A hotel keeper has a lien on the baggage or other property in the hotel which belong to or are under the control of a guest for any charge due or to become due to the hotel keeper for: (1) The price or value of food or accommodation; (2) The amount of any loan or advance; or (3) The amount provided by cashing a check, draft, or otherwise. (b) The hotel keeper may retain possession of the property to which the lien attaches until all charges due or to become due to him are paid. (c) If the charges which give rise to the lien are unpaid 15 days after they become due, the hotel keeper may sell the property to which the lien attaches at public sale. (d) The hotel keeper shall publish notice of the time, place, and terms of the sale at least twice in one or more newspapers of general circulation in the county where the hotel is located. The first publication of notice shall be at least 10 days before the sale. (e) (1) The proceeds of the sale shall be applied, in the following order, to: (i) The expenses of the sale; and (ii) The amount of the lien claim. (2) After application of the proceeds in accordance with paragraph (1) of this subsection, any remaining balance shall be paid to the owner of the property.

Md. Code, Commercial Law § 16-503

(a) Any person who takes boarders or lodgers into his house has a lien on the furniture or other property which the boarder or lodger has on the person’s premises for the contract price due or to become due for the room or board furnished. (b) The person may retain possession of the property to which the lien attaches until all charges due or to become due to him are paid. (c) If the charges which give rise to the lien are unpaid after they become due, the person may sell the property to which the lien attaches at public or private sale. (d) The person shall give at least 10 days reasonable notice of the sale to the boarder or lodger. (e) (1) The proceeds of the sale shall be applied, in the following order, to: (i) The expenses of the sale; and (ii) The amount of the lien claim. (2) After application of the proceeds in accordance with paragraph (1) of this subsection, any remaining balance shall be paid to the boarder or lodger.

Md. Code, Commercial Law § 16-601

(a) A hospital which furnishes medical or other services to a patient injured in an accident not covered by the Maryland Workers’ Compensation Act has a lien on 50 percent of the recovery or sum which the patient or, in case of death, the heirs or personal representative of the patient collect in judgment, settlement, or compromise of the patient’s claim against another for damages on account of the injuries. (b) (1) The lien secures the reasonable and necessary charges of the hospital for treatment, care, and maintenance provided to the patient. (2) However, the charges secured may not exceed those allowed by the State Workers’ Compensation Commission for medical services rendered to individuals coming under the Maryland Workers’ Compensation Act. (c) A hospital’s lien is subordinate only to an attorney’s lien for professional services for collecting or obtaining damages.

Md. Code, Commercial Law § 16-602

(a) A lien is not effective under this subtitle unless, before payment of any money to the patient, his attorney, heirs, or personal representative as compensation for the injuries, the hospital: (1) Files a notice of lien with the clerk of the circuit court of the county where the medical or other services were provided; and (2) Sends a copy of the notice of lien and a statement of the date of its filing by registered or certified mail to the person alleged to be liable for the injuries received by the patient. (b) The notice of lien shall be in writing and shall contain: (1) The name and address of the injured patient; (2) The date of the accident; (3) The name and location of the hospital; (4) The amount claimed; and (5) The name of the person alleged to be liable for the injuries received. (c) The hospital also shall send a copy of the notice of lien by registered or certified mail to any insurance carrier known to insure the person alleged to be liable for the injuries received by the patient.

Md. Code, Commercial Law § 16-603

After the filing and mailing of the notice of lien, if any person makes any payment to the patient, his attorney, heirs, or personal representative as compensation for the injuries, without paying the hospital the amount of the lien as provided in § 16-601 of this subtitle or as much of the lien as may be satisfied by any money due under any final judgment or under any compromise or settlement agreement after paying the amount of any prior lien, he is liable to the hospital for a period of one year from the date of making payment to the patient, his attorney, heirs, or personal representative.

Md. Code, Commercial Law § 16-604

Any person who is legally liable for or against whom a claim is asserted by a patient for compensation for injuries shall be permitted to inspect the records of the hospital in order to evaluate the basis of the hospital’s lien and to ascertain the itemized hospital departmental charges for the period of the patient’s confinement. Notice of the inspection shall be mailed to the patient.

Md. Code, Commercial Law § 16-605

(a) The clerk of the circuit court shall provide a hospital lien docket. On the filing of a notice of lien under the provisions of this subtitle, the clerk shall enter in the hospital lien docket: (1) The name of the injured patient; (2) The name of the person alleged to be liable for the patient’s injuries; (3) The date of the accident; and (4) The name of the hospital making the claim. (b) The clerk shall index the hospital lien under the name of the injured patient. (c) On presentation of a release of a lien, the clerk shall note in the docket the date when the release was filed and shall note on the release that it was recorded. A release bearing a note that it was recorded or a notation in the docket showing the release constitutes prima facie evidence of the release of the lien. (d) The clerk shall collect not more than $2 for the filing, recording, and indexing of each lien. He also shall collect not more than $2 for filing a release of the lien and for noting the filing of the release in the docket and on the release.

Md. Code, Commercial Law § 16-701

(a) (1) If a qualified veterinarian, as defined in the Agriculture Article, or a commercial boarding kennel operator gives care or custody to any animal or performs medical or other services necessary and incidental to their professions to any animal under care or custody, the veterinarian or commercial boarding kennel operator may notify the owner after the animal is ready for delivery that the animal is ready. (2) Notice may be given in person or by registered or certified mail or, if the owner’s address is unknown, by posting the notice for 10 days on the door of the courthouse or on a bulletin board in the immediate vicinity of the courthouse of the county where the animal is located. (b) If the animal is not claimed and taken by the owner from the veterinarian or the boarding kennel within 10 days of the date the notice is given or posted, the owner forfeits his title to the animal and the veterinarian or the commercial boarding kennel operator may: (1) Sell the animal at public sale, except for purposes of experimentation or vivisection; (2) Turn the animal over to an animal welfare agency serving the county in which the animal is located or, if there is no animal welfare agency in that county, to the nearest animal welfare agency; or (3) Turn the animal over to a responsible private individual in the county. (c) If the veterinarian or commercial boarding kennel operator gives notice to the owner of the animal as provided in subsection (a) of this section, the veterinarian, commercial boarding kennel operator, and any custodian to whom the animal may be given are relieved of any further liability for disposal. (d) (1) The proceeds of any sale under subsection (b)(1) of this section shall be applied, in the following order, to: (i) The expenses of the sale; and (ii) The amount of the indebtedness of the owner of the animal. (2) After application of the proceeds in accordance with paragraph (1) of this subsection, any balance shall be held for 30 days for the benefit of the owner of the animal. If the balance is unclaimed after 30 days, the veterinarian or commercial boarding kennel operator shall turn the balance over to the local board of education. (e) The exercise of any right provided in this section does not prevent a subsequent action at law for the collection of any money remaining due and unpaid to the veterinarian or commercial boarding kennel operator.

Md. Code, Commercial Law § 16-801

In this subtitle, “conservation measure”, “lender”, “loan”, and “museum” have the meanings stated in § 17–401 of this article.

Md. Code, Commercial Law § 16-802

(a) Except as provided in subsection (b) of this section, a museum that applies conservation measures under § 17–405 of this article to property on loan to the museum has a lien on property for the costs of the conservation measures. (b) A museum may not acquire a lien under subsection (a) of this section if there is an agreement between the museum and the lender that addresses the costs of conservation measures.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026

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