The Maryland Homeowners Association Act provides state guidelines for the operations of HOAs within Maryland.  These laws supersede the governing documents in many cases on topics such as budgeting, books and records, meeting notice, open meetings of the BOD, and other topics.

This page contains excerpts of the MHAA which may impact the Chestnut Grove HOA.  The full text can be found at the source: Westlaw Next.

MD Code, Real Property, § 11B-106

§ 11B-106. Resales within developments or initial sales within small developments
Disclosures and notice required
(a) A contract for the resale of a lot within a development, or for the initial sale of a lot within a development containing 12 or fewer lots, to a member of the public who intends to occupy or rent the lot for residential purposes, is not enforceable by the vendor unless:
(1) The purchaser is given, on or before entering into the contract for the sale of such lot, or within 20 calendar days of entering into the contract, the disclosures set forth in subsection (b) of this section;
(2) The purchaser is given any changes in mandatory fees and payments exceeding 10 percent of the amount previously stated to exist and any other substantial and material amendment to the disclosures after they become known to the vendor; and
(3) The contract of sale contains a notice in conspicuous type, which shall include bold and underscored type, in a form substantially the same as the following:
“This sale is subject to the requirements of the Maryland Homeowners Association Act (the “Act”). The Act requires that the seller disclose to you at or before the time the contract is entered into, or within 20 calendar days of entering into the contract, certain information concerning the development in which the lot you are purchasing is located. The content of the information to be disclosed is set forth in § 11B-106(b) of the Act (the “MHAA information”) as follows:
(The notice shall include at this point the text of § 11B-106(b) in its entirety).
If you have not received all of the MHAA information 5 calendar days or more before entering into the contract, you have 5 calendar days to cancel this contract after receiving all of the MHAA information. You must cancel the contract in writing, but you do not have to state a reason. The seller must also provide you with notice of any changes in mandatory fees exceeding 10% of the amount previously stated to exist and copies of any other substantial and material amendment to the information provided to you. You have 3 calendar days to cancel this contract after receiving notice of any changes in mandatory fees, or copies of any other substantial and material amendment to the MHAA information which adversely affects you. If you do cancel the contract you will be entitled to a refund of any deposit you made on account of the contract. However, unless you return the MHAA information to the seller when you cancel the contract, the seller may keep out of your deposit the cost of reproducing the MHAA information, or $100, whichever amount is less.
By purchasing a lot within this development, you will automatically be subject to various rights, responsibilities, and obligations, including the obligation to pay certain assessments to the homeowners association within the development. The lot you are purchasing may have restrictions on:
(1) Architectural changes, design, color, landscaping, or appearance;
(2) Occupancy density;
(3) Kind, number, or use of vehicles;
(4) Renting, leasing, mortgaging, or conveying property;
(5) Commercial activity; or
(6) Other matters.
You should review the MHAA information carefully to ascertain your rights, responsibilities, and obligations within the development.”
Information provided in writing
(b) The vendor shall provide the purchaser the following information in writing:
(1) A statement as to whether the lot is located within a development;
(2)(i) The current monthly fees or assessments imposed by the homeowners association upon the lot;
(ii) The total amount of fees, assessments, and other charges imposed by the homeowners association upon the lot during the prior fiscal year of the homeowners association; and
(iii) A statement of whether any of the fees, assessments, or other charges against the lot are delinquent;
(3) The name, address, and telephone number of the management agent of the homeowners association, or other officer or agent authorized by the homeowners association to provide to members of the public, information regarding the homeowners association and the development, or a statement that no agent or officer is presently so authorized by the homeowners association;
(4) A statement as to whether the owner has actual knowledge of:
(i) The existence of any unsatisfied judgments or pending lawsuits against the homeowners association; and
(ii) Any pending claims, covenant violations actions, or notices of default against the lot; and
(5) A copy of:
(i) The articles of incorporation, the declaration, and all recorded covenants and restrictions of the primary development, and of other related developments to the extent reasonably available, to which the purchaser shall become obligated on becoming an owner of the lot, including a statement that these obligations are enforceable against an owner’s tenants, if applicable; and
(ii) The bylaws and rules of the primary development, and of other related developments to the extent reasonably available, to which the purchaser shall become obligated on becoming an owner of the lot, including a statement that these obligations are enforceable against an owner and the owner’s tenants, if applicable.
Notice of transfer of lot within development
(c)(1) Within 30 calendar days of any resale transfer of a lot within a development, the transferor shall notify the homeowners association for the primary development of the transfer.
(2) The notification shall include, to the extent reasonably available, the name and address of the transferee, the name and forwarding address of the transferor, the date of transfer, the name and address of any mortgagee, and the proportionate amount of any outstanding homeowners association fee or assessment assumed by each of the parties to the transaction.
Required information in writing
(d) The requirements of subsection (b) of this section shall be deemed to have been fulfilled if the information required to be disclosed is provided to the purchaser in writing in a clear and concise manner. The disclosures may be summarized or produced in any collection of documents, including plats, the declaration, or the organizational documents of the homeowners association, provided those documents effectively convey the required information to the purchaser.
Reliance upon disclosures contained in depository
(e) In satisfying the requirements of subsection (b) of this section, the vendor shall be entitled to rely upon the disclosures contained in the depository after June 30, 1989.
Actions to foreclose mortgages or deeds of trust
(f) The provisions of subsections (a), (b), (d), and (e) of this section do not apply to the sale of a lot in an action to foreclose a mortgage or deed of trust.

§ 11B-111. Homeowners association meetings
Except as provided in this title, and notwithstanding anything contained in any of the documents of the homeowners association:
(1) Subject to the provisions of item (4) of this section, all meetings of the homeowners association, including meetings of the board of directors or other governing body of the homeowners association or a committee of the homeowners association, shall be open to all members of the homeowners association or their agents;
(2) All members of the homeowners association shall be given reasonable notice of all regularly scheduled open meetings of the homeowners association;
(3)(i) This item does not apply to any meeting of a governing body that occurs at any time before the lot owners, other than the developer, have a majority of votes in the homeowners association, as provided in the declaration;
(ii) Subject to item (iii) of this item and to reasonable rules adopted by a governing body, a governing body shall provide a designated period of time during a meeting to allow lot owners an opportunity to comment on any matter relating to the homeowners association;
(iii) During a meeting at which the agenda is limited to specific topics or at a special meeting, the lot owners’ comments may be limited to the topics listed on the meeting agenda; and
(iv) The governing body shall convene at least one meeting each year at which the agenda is open to any matter relating to the homeowners association;
(4) A meeting of the board of directors or other governing body of the homeowners association or a committee of the homeowners association may be held in closed session only for the following purposes:
(i) Discussion of matters pertaining to employees and personnel;
(ii) Protection of the privacy or reputation of individuals in matters not related to the homeowners association’s business;
(iii) Consultation with legal counsel on legal matters;
(iv) Consultation with staff personnel, consultants, attorneys, board members, or other persons in connection with pending or potential litigation or other legal matters;
(v) Investigative proceedings concerning possible or actual criminal misconduct;
(vi) Consideration of the terms or conditions of a business transaction in the negotiation stage if the disclosure could adversely affect the economic interests of the homeowners association;
(vii) Compliance with a specific constitutional, statutory, or judicially imposed requirement protecting particular proceedings or matters from public disclosure; or
(viii) Discussion of individual owner assessment accounts; and
(5) If a meeting is held in closed session under item (4) of this section:
(i) An action may not be taken and a matter may not be discussed if it is not permitted by item (4) of this section; and
(ii) A statement of the time, place, and purpose of a closed meeting, the record of the vote of each board or committee member by which the meeting was closed, and the authority under this section for closing a meeting shall be included in the minutes of the next meeting of the board of directors or the committee of the homeowners association.

§ 11B-111.1. Use of residence for child care
Definitions
(a)(1) In this section the following words have the meanings indicated.
(2) “Child care provider” means the adult who has primary responsibility for the operation of a family child care home.
(3) “Family child care home” means a unit registered under Title 5, Subtitle 5 of the Family Law Article.
(4) “No-impact home-based business” means a business that:
(i) Is consistent with the residential character of the dwelling unit;
(ii) Is subordinate to the use of the dwelling unit for residential purposes and requires no external modifications that detract from the residential appearance of the dwelling unit;
(iii) Uses no equipment or process that creates noise, vibration, glare, fumes, odors, or electrical or electronic interference detectable by neighbors or that causes an increase of common expenses that can be solely and directly attributable to a no-impact home-based business; and
(iv) Does not involve use, storage, or disposal of any grouping or classification of materials that the United States Secretary of Transportation or the State or any local governing body designates as a hazardous material.
Homeowners associations limited to older persons
(b)(1) The provisions of this section relating to family child care homes do not apply to a homeowners association that is limited to housing for older persons, as defined under the federal Fair Housing Act.1
(2) The provisions of this section relating to no-impact home-based businesses do not apply to a homeowners association that has adopted, prior to July 1, 1999, procedures in accordance with its covenants, declaration, or bylaws for the prohibition or regulation of no-impact home-based businesses.
Prohibitions or restrictions of commercial or business activities, in general
(c)(1) Subject to the provisions of subsections (d) and (e)(1) of this section, a recorded covenant or restriction, a provision in a declaration, or a provision of the bylaws or rules of a homeowners association that prohibits or restricts commercial or business activity in general, but does not expressly apply to family child care homes or no-impact home-based businesses, may not be construed to prohibit or restrict:
(i) The establishment and operation of family child care homes or no-impact home-based businesses; or
(ii) Use of the roads, sidewalks, and other common areas of the homeowners association by users of the family child care home.
(2) Subject to the provisions of subsections (d) and (e)(1) of this section, the operation of a family child care home or no-impact home-based business shall be:
(i) Considered a residential activity; and
(ii) A permitted activity.
Prohibitions against using residence as family child care home or no-impact home-based business
(d)(1)(i) Except as provided in subparagraph (ii) of this paragraph and subject to the provisions of paragraphs (2) and (3) of this subsection, a homeowners association may include in its declaration, bylaws, or recorded covenants and restrictions a provision expressly prohibiting the use of a residence as a family child care home or no-impact home-based business.
(ii) A homeowners association may not include a provision described under subparagraph (i) of this paragraph expressly prohibiting the use of a residence as a family child care home in its declaration, bylaws, or recorded covenants and restrictions until the lot owners, other than the developer, have 90% of the votes in the homeowners association.
(iii) A provision described under subparagraph (i) of this paragraph expressly prohibiting the use of a residence as a family child care home or no-impact home-based business shall apply to an existing family child care home or no-impact home-based business in the homeowners association.
(2) A provision described under paragraph (1)(i) of this subsection expressly prohibiting the use of a residence as a family child care home or no-impact home-based business may not be enforced unless it is approved by a simple majority of the total eligible voters of the homeowners association, not including the developer, under the voting procedures contained in the declaration or bylaws of the homeowners association.
(3) If a homeowners association includes in its declaration, bylaws, or recorded covenants and restrictions a provision prohibiting the use of a residence as a family child care home or no-impact home-based business, it shall also include a provision stating that the prohibition may be eliminated and family child care homes or no-impact home-based businesses may be approved by a simple majority of the total eligible voters of the homeowners association under the voting procedures contained in the declaration or bylaws of the homeowners association.
(4) If a homeowners association includes in its declaration, bylaws, or recorded covenants and restrictions a provision expressly prohibiting the use of a residence as a family child care home or no-impact home-based business, the prohibition may be eliminated and family child care or no-impact home-based business activities may be permitted by the approval of a simple majority of the total eligible voters of the homeowners association under the voting procedures contained in the declaration or bylaws of the homeowners association.
Insurance costs and fees for use of common areas
(e) A homeowners association may include in its declaration, bylaws, rules, or recorded covenants and restrictions a provision that:
(1) Requires child care providers to pay on a pro rata basis based on the total number of family child care homes operating in the homeowners association any increase in insurance costs of the homeowners association that are solely and directly attributable to the operation of family child care homes in the homeowners association; and
(2) Imposes a fee for use of common areas in a reasonable amount not to exceed $50 per year on each family child care home or no-impact home-based business which is registered and operating in the homeowners association.
Notification before opening family child care home
(f)(1) If the homeowners association regulates the number or percentage of family child care homes under subsection (e)(1) of this section, in order to assure compliance with this regulation, the homeowners association may require residents to notify the homeowners association before opening a family child care home.
(2) The homeowners association may require residents to notify the homeowners association before opening a no-impact home-based business.
Liability insurance obtained by child care provider
(g)(1) A child care provider in a homeowners association:
(i) Shall obtain the liability insurance described under §§ 19-106 and 19-203 of the Insurance Article in at least the minimum amount described under that statute; and
(ii) May not operate without the liability insurance described under item (i) of this paragraph.
(2) A homeowners association may not require a child care provider to obtain insurance in an amount greater than the minimum amount required under paragraph (1) of this subsection.
No-impact home-based businesses in common areas
(h) A homeowners association may restrict or prohibit a no-impact home-based business in any common areas.

§ 11B-111.2. Candidate or political signs
Candidate sign defined
(a) In this section, “candidate sign” means a sign on behalf of a candidate for public office or a slate of candidates for public office.
Display of candidate signs or signs relating to propositions
(b) Except as provided in subsection (c) of this section, a recorded covenant or restriction, a provision in a declaration, or a provision in the bylaws or rules of a homeowners association may not restrict or prohibit the display of:
(1) A candidate sign; or
(2) A sign that advertises the support or defeat of any question submitted to the voters in accordance with the Election Law Article.
Restrictions to display of candidate signs or signs relating to propositions
(c) A recorded covenant or restriction, a provision in a declaration, or a provision in the bylaws or rules of a homeowners association may restrict the display of a candidate sign or a sign that advertises the support or defeat of any proposition:
(1) In the common areas;
(2) In accordance with provisions of federal, State, and local law; or
(3) If a limitation to the time period during which signs may be displayed is not specified by a law of the jurisdiction in which the homeowners association is located, to a time period not less than:
(i) 30 days before the primary election, general election, or vote on the proposition; and
(ii) 7 days after the primary election, general election, or vote on the proposition.

§ 11B-111.3. Distribution of materials to lot owners
Application of section
(a) This section does not apply to the distribution of information or materials at any time before the lot owners, other than the developer, have a majority of votes in the homeowners association, as provided in the declaration.
Distribution of information by governing body
(b) In this section, the door-to-door distribution of any of the following information or materials may not be considered a distribution for purposes of determining the manner in which a governing body distributes information under this section:
(1) Any information or materials reflecting the assessments imposed on lot owners in accordance with a recorded covenant, the declaration, bylaw, or rule of the homeowners association; and
(2) Any meeting notices of the governing body.
Distribution of written information relating to operation of homeowners association
(c) Except for reasonable restrictions to the time of distribution, a recorded covenant or restriction, a provision in a declaration, or a provision of the bylaws or rules of a homeowners association may not restrict a lot owner from distributing written information or materials regarding the operation of or matters relating to the operation of the homeowners association in any manner or place that the governing body distributes written information or materials.

§ 11B-111.4. Meetings of lot owners
Application of section
(a) This section does not apply to any meetings of lot owners occurring at any time before the lot owners, other than the developer, have a majority of the votes in the homeowners association, as provided in the declaration.
Meetings of lot owners
(b) Subject to reasonable rules adopted by the governing body, lot owners may meet for the purpose of considering and discussing the operation of and matters relating to the operation of the homeowners association in any common areas or in any building or facility in the common areas that the governing body of the homeowners association uses for scheduled meetings.

§ 11B-111.5. Appointment of receiver to manage homeowners association
Failure to fill vacancies on governing body to constitute quorum
(a) If a homeowners association fails to fill vacancies on the governing body sufficient to constitute a quorum in accordance with the bylaws, three or more owners of lots may petition the circuit court for the county where the condominium is located to appoint a receiver to manage the affairs of the homeowners association.
Notice of petition to appoint receiver
(b)(1) At least 30 days before petitioning the circuit court, the lot owners acting under the authority granted by subsection (a) of this section shall mail to the governing body a notice describing the petition and the proposed action.
(2) The lot owners shall mail a copy of the notice to the owner of each lot in the development.
Failure to fill vacancies during notice period
(c) If the governing body fails to fill vacancies sufficient to constitute a quorum within the notice period, the lot owners may proceed with the petition.
Receiver prohibited from living or owning lot in development
(d) A receiver appointed by a court under this section may not reside in or own a lot in the development governed by the homeowners association.
Powers and duties of receiver
(e)(1) A receiver appointed under this section shall have all powers and duties of a duly constituted governing body.
(2) The receiver shall serve until the homeowners association fills vacancies on the governing body sufficient to constitute a quorum.
Salary of receiver, court costs, and attorney’s fees
(f) The salary of the receiver, court costs, and reasonable attorney’s fees are expenses of the homeowners association.

§ 11B-111.6. Purchase of fidelity insurance by homeowners association
Fidelity insurance includes fidelity bond
(a) In this section, “fidelity insurance” includes a fidelity bond.
Application of section
(b) This section does not apply to a homeowners association:
(1) That has four or fewer lot owners; and
(2) For which 3 months’ worth of gross annual homeowners association fees is less than $2,500.
Fidelity insurance requirements
(c)(1) The board of directors or other governing body of a homeowners association shall purchase fidelity insurance not later than the time of the first conveyance of a lot to a person other than the declarant and shall keep fidelity insurance in place for each year thereafter.
(2) The fidelity insurance required under paragraph (1) of this subsection shall provide for the indemnification of the homeowners association against loss resulting from acts or omissions arising from fraud, dishonesty, or criminal acts by:
(i) Any officer, director, managing agent, or other agent or employee charged with the operation or maintenance of the homeowners association who controls or disburses funds; and
(ii) Any management company employing a management agent or other employee charged with the operation or maintenance of the homeowners association who controls or disburses funds.
Copy of policy or bond included in books and records of association
(d) A copy of the fidelity insurance policy or fidelity bond shall be included in the books and records kept and made available by or on behalf of the homeowners association under § 11B-112 of this title.
Amount of fidelity insurance
(e)(1) The amount of the fidelity insurance required under subsection (c) of this section shall equal at least the lesser of:
(i) 3 months’ worth of gross annual homeowners association fees and the total amount held in all investment accounts at the time the fidelity insurance is issued; or
(ii) $3,000,000.
(2) The total liability of the insurance to all insured persons under the fidelity insurance may not exceed the sum of the fidelity insurance.
Failure to comply with section
(f) If a lot owner believes that the board of directors or other governing body of a homeowners association has failed to comply with the requirements of this section, the aggrieved lot owner may submit the dispute to the Division of Consumer Protection of the Office of the Attorney General under § 11B-115 of this title.

§ 11B-112. Books and records of homeowners association available for examination and copying
In general
(a)(1)(i) Subject to the provisions of paragraph (2) of this subsection, all books and records kept by or on behalf of the homeowners association shall be made available for examination or copying, or both, by a lot owner, a lot owner’s mortgagee, or their respective duly authorized agents or attorneys, during normal business hours, and after reasonable notice.
(ii) Books and records required to be made available under subparagraph (i) of this paragraph shall first be made available to a lot owner no later than 15 business days after a lot is conveyed by the declarant and the lot owner requests to examine or copy the books and records.
(iii) If a lot owner requests in writing a copy of financial statements of the homeowners association or the minutes of a meeting of the governing body of the homeowners association to be delivered, the governing body of the homeowners association shall compile and send the requested information by mail, electronic transmission, or personal delivery:
1. Within 21 days after receipt of the written request, if the financial statements or minutes were prepared within the 3 years immediately preceding receipt of the request; or
2. Within 45 days after receipt of the written request, if the financial statements or minutes were prepared more than 3 years before receipt of the request.
(2) Books and records kept by or on behalf of a homeowners association may be withheld from public inspection, except for inspection by the person who is the subject of the record or the person’s designee or guardian, to the extent that they concern:
(i) Personnel records, not including information on individual salaries, wages, bonuses, and other compensation paid to employees;
(ii) An individual’s medical records;
(iii) An individual’s personal financial records, including assets, income, liabilities, net worth, bank balances, financial history or activities, and creditworthiness;
(iv) Records relating to business transactions that are currently in negotiation;
(v) The written advice of legal counsel; or
(vi) Minutes of a closed meeting of the governing body of the homeowners association, unless a majority of a quorum of the governing body of the homeowners association that held the meeting approves unsealing the minutes or a recording of the minutes for public inspection.
Charges for review or copies of books and records
(b)(1) Except for a reasonable charge imposed on a person desiring to review or copy the books and records or who requests delivery of information, the homeowners association may not impose any charges under this section.
(2) A charge imposed under paragraph (1) of this subsection for copying books and records may not exceed the limits authorized under Title 7, Subtitle 2 of the Courts Article.
Deposit of disclosures in depository
(c)(1) Each homeowners association that was in existence on June 30, 1987 shall deposit in the depository by December 31, 1988, and each homeowners association established subsequent to June 30, 1987 shall deposit in the depository by the later of the date 30 days following its establishment, or December 31, 1988, all disclosures, current to the date of deposit, specified:
(i) By § 11B-105(b) of this title except for those disclosures required by paragraphs (6)(i), (8), (9), and (12);
(ii) By § 11B-106(b) of this title except for those disclosures required by paragraphs (1), (2), (4), and (5)(i); and
(iii) By § 11B-107(b) of this title.
(2) Beginning January 1, 1989, within 30 days of the adoption of or amendment to any of the disclosures required by this title to be deposited in the depository, a homeowners association shall deposit the adopted or amended disclosures in the depository.
(3) If a homeowners association fails to deposit in the depository any of the disclosures required to be deposited by this section, or by § 11B-105(b)(6)(ii) or § 11B-106(b)(5)(ii) of this title, then those disclosures which were not deposited shall be unenforceable until the time they are deposited.

§ 11B-112.1. Late charges
The declaration or bylaws of a homeowners association may provide for a late charge of $15 or one-tenth of the total amount of any delinquent assessment or installment, whichever is greater, provided the charge may not be imposed more than once for the same delinquent payment and may be imposed only if the delinquency has continued for at least 15 calendar days.

§ 11B-112.2. Homeowners association annual budget
Application of section
(a) This section applies only to a homeowners association that has responsibility under its declaration for maintaining and repairing common areas.
Preparation and submission of budget
(b)(1) The board of directors or other governing body of a homeowners association shall cause to be prepared and submitted to the lot owners an annual proposed budget at least 30 days before its adoption.
(2) The annual proposed budget may be sent to each lot owner by electronic transmission, by posting on the homeowners association’s home page, or by including the annual proposed budget in the homeowners association’s newsletter.
Items included in annual budget
(c) The annual budget shall provide information on or expenditures for at least the following items:
(1) Income;
(2) Administration;
(3) Maintenance;
(4) Utilities;
(5) General expenses;
(6) Reserves; and
(7) Capital expenses.
Adoption of budget
(d)(1) The budget shall be adopted at an open meeting of the homeowners association or any other body to which the homeowners association delegates responsibilities for preparing and adopting the budget.
(2)(i) Notice of the meeting at which the proposed budget will be considered shall be sent to each lot owner.
(ii) Notice under subparagraph (i) of this paragraph may be sent by electronic transmission, by posting on the homeowners association’s home page, or by including the notice in the homeowners association’s newsletter.
Expenditures requiring approval
(e) Except for an expenditure made by the homeowners association because of a condition that, if not corrected, could reasonably result in a threat to the health or safety of the lot owners or a significant risk of damage to the development, any expenditure that would result in an increase in an amount of assessments for the current fiscal year of the homeowners association in excess of 15% of the budgeted amount previously adopted shall be approved by an amendment to the budget adopted at a special meeting for which not less than 10 days’ written notice shall be provided to the lot owners.
Obligation of homeowners association for expenditures
(f) The adoption of a budget does not impair the authority of the homeowners association to obligate the homeowners association for expenditures for any purpose consistent with any provision of this title.

§ 11B-113. Homeowners association depositories
In general
(a) There is a homeowners association depository in the office of the clerk of the court in each county and the City of Baltimore.
Establishment and maintenance of depository
(b) Consistent with the duties of a clerk of a court as enumerated in § 2-201 of the Courts and Judicial Proceedings Article, the clerk of the court shall establish and thereafter maintain a depository for the purpose of making available to the public upon request the information to be deposited by homeowners associations.
Nature of depository
(c) The depository shall:
(1) Be established and maintained in each county and the City of Baltimore as a document file separate from the land records of the county or City;
(2) Contain a record of the names of all homeowners associations for each county and the City of Baltimore;
(3) Contain all disclosures deposited by a homeowners association; and
(4) Be available to the public for viewing and for obtaining copies during the regular business hours of the office of the clerk.
Form and manner of documents deposited
(d)(1) The clerk of the court is authorized to regulate the form and manner of documents deposited into the depository and to collect fees for a deposit.
(2) The clerk of the court shall permit the deposit of copies of disclosures, however reproduced.
(3) The clerk of the court may adopt regulations as necessary or desirable to implement the depository.
(4) The State Court Administrator shall establish, so as to cover the reasonable and ordinary expenses of maintaining the depository, the amount of the fees that the clerk of the court may charge for deposits in the depository.
(5)(i) The clerk of the court shall maintain a depository index; and
(ii) All disclosures shall be filed under the name of the homeowners association.
Material not viewed as recordation
(e) Material contained in the depository may not be viewed as recordation under Title 3 of this article.

§ 11B-113.1. Notice and delivery by electronic transmission
Authority of homeowners association to use electronic transmission
(a) Notwithstanding language contained in the governing documents of a homeowners association, the homeowners association may provide notice of a meeting or deliver information to a lot owner by electronic transmission if:
(1) The board of directors or other governing body of the homeowners association gives the homeowners association the authority to provide notice of a meeting or deliver information by electronic transmission;
(2) The lot owner gives the homeowners association prior written authorization to provide notice of a meeting or deliver information by electronic transmission; and
(3) An officer or agent of the homeowners association certifies in writing that the homeowners association has provided notice of a meeting or delivered material or information as authorized by the lot owner.
Notice or delivery considered ineffective
(b) Notice or delivery by electronic transmission shall be considered ineffective if:
(1) The homeowners association is unable to deliver two consecutive notices; and
(2) The inability to deliver the electronic transmission becomes known to the person responsible for sending the electronic transmission.
Failure to deliver notice by electronic transmission
(c) The inadvertent failure to deliver notice by electronic transmission does not invalidate any meeting or other action.

§ 11B-113.2. Voting by electronic transmission
Authorization of voting or proxy by electronic transmission
(a) Notwithstanding language contained in the governing documents of the homeowners association, the board of directors or other governing body of the homeowners association may authorize lot owners to submit a vote or proxy by electronic transmission if the electronic transmission contains information that verifies that the vote or proxy is authorized by the lot owner or the lot owner’s proxy.
Secret ballots or anonymous voting
(b) If the governing documents of the homeowners association require voting by secret ballot and the anonymity of voting by electronic transmission cannot be guaranteed, voting by electronic transmission shall be permitted if lot owners have the option of casting anonymous printed ballots.

§ 11B-114. Electronic payment fees
Electronic payment defined
(a) In this section, “electronic payment” means payment by credit card or debit card.
In general
(b) A homeowners association may require a person from whom payment is due to pay a reasonable electronic payment fee if the person elects to pay the homeowners association by means of electronic payment.
Amount of fee
(c) An electronic payment fee may not exceed the amount of any fee that may be charged to the homeowners association in connection with use of the credit card or debit card.
Notice of fee on bills or invoices
(d) If a homeowners association elects to charge an electronic payment fee under this section, the homeowners association shall specify on or include notice with each bill and other invoices for which electronic payment is authorized that an electronic payment fee will be charged.

§ 11B-117. Responsibility of lot owners for assessments, charges, and liens
In general
(a) As provided in the declaration, a lot owner shall be liable for all homeowners association assessments and charges that come due during the time that the lot owner owns the lot.
Enforcement of payments
(b) In addition to any other remedies available at law, a homeowners association may enforce the payment of the assessments and charges provided in the declaration by the imposition of a lien on a lot in accordance with the Maryland Contract Lien Act.
Priority of liens, secured interests, or other encumbrances
(c)(1) This subsection does not limit or affect the priority of:
(i) A lien for the annual charge provided first priority over a deed of trust or mortgage by the deed, agreement, and declaration of covenants, easements, charges, and liens dated December 13, 1966, and recorded in the land records of Howard County (the Columbia Association Declaration); or
(ii) Any lien, secured interest, or other encumbrance with priority that is held by or for the benefit of, purchased by, assigned to, or securing any indebtedness to:
1. The State or any county or municipal corporation in the State;
2. Any unit of State government or the government of any county or municipal corporation in the State; or
3. An instrumentality of the State or any county or municipal corporation in the State.
(2) In the case of a foreclosure of a mortgage or deed of trust on a lot in a homeowners association, a portion of the homeowners association’s liens on the lot, as prescribed in paragraph (3) of this subsection, shall have priority over a claim of the holder of a first mortgage or a first deed of trust that is recorded against the lot on or after October 1, 2011.
(3) The portion of the homeowners association’s liens that has priority under paragraph (2) of this subsection:
(i) Shall consist solely of not more than 4 months, or the equivalent of 4 months, of unpaid regular assessments for common expenses that are levied by the homeowners association in accordance with the requirements of the declaration or bylaws of the homeowners association;
(ii) May not include:
1. Interest;
2. Costs of collection;
3. Late charges;
4. Fines;
5. Attorney’s fees;
6. Special assessments; or
7. Any other costs or sums due under the declaration or bylaws of the homeowners association or as provided under any contract, law, or court order; and
(iii) May not exceed a maximum of $1,200.
(4)(i) Subject to subparagraph (ii) of this paragraph, at the request of the holder of a first mortgage or first deed of trust on a lot in a homeowners association, the governing body shall provide to the holder written information about the portion of any lien filed under the Maryland Contract Lien Act that has priority as prescribed under paragraph (3) of this subsection, including information that is sufficient to allow the holder to determine the basis for the portion of the lien that has priority.
(ii) At the time of making a request under subparagraph (i) of this paragraph, the holder shall provide the governing body of the homeowners association with the written contact information of the holder.
(iii) If the governing body of the homeowners association fails to provide written information to the holder under subparagraph (i) of this paragraph within 30 days after the filing of the statement of lien among the land records of each county in which the homeowners association is located, the portion of the homeowners association’s liens does not have priority as prescribed under paragraph (2) of this subsection.