The Circuit Court for Prince George's County granted judgment in favor of BAC, a refinance lender, and against a HELOC lender. The HELOC lender received approximately $200,000 at settlement of the BAC loan, as a payoff. However, the HELOC lender failed to release the lien. It allowed the borrower to run the credit line back to it's limit, and then sued to establish lien priority over BAC's refinance lien.

The Circuit Court held that the HELOC lender failed to communicate that it's line of credit would remain open unless the borrower formally closed the account. The HELOC lender made it's payoff request on a generic form, suggesting an ordinary mortgage loan. The HELOC lender appealed. Oral argument is not yet scheduled.