Rule 14-204. Institution of Action

(a) Under Power of Sale. Subject to compliance with section (c) of this Rule, any individual authorized to exercise a power of sale may institute an action to foreclose the lien.

(b) Under Assent to Decree. A secured party may file an action to foreclose the lien under an assent to a decree, except that an action to foreclose a deed of trust shall be instituted by the beneficiary of the deed of trust, any trustee appointed in the deed, or any successor trustee.

(c) Fractional Owners of Debt.

(1) Minimum Fractional Interest Required. Except when the lien instrument is a deed of trust, a power of sale may not be exercised, and the court may not enter an order for a sale under an assent to a decree, unless the power is exercised or application for an order is made or consented to by the holders of 25% or more of the entire debt due under the lien instrument.

(2) Priority of Actions Involving Fractional Interests. If more than one party is authorized under these Rules to file an action to foreclose a lien, the first such party to file an action acquires the exclusive right to proceed on behalf of all fractional interest holders of the lien instrument being foreclosed.

Section (a) is derived from the 2008 version of former Rule 14-202 (a)(1).

Section (b) is derived from the 2008 version of former Rule 14-202 (a)(2).

Subsection (c)(1) is derived from the 2008 version of former Rule 14-202 (b)(1) and (c).

Subsection (c)(2) is derived from the 2008 version of former Rule 14-202 (b)(2).