3536 ARTICLE 95A

Collection of Contributions.

1936 (Dec. Sp. Sess.), ch. 1, sec. 14. 1939, ch. 278, sec. 14.

14. (a) (Interest on Past-Due Contributions.) Contributions unpaid
on the date on which they are due and payable, as prescribed by the
Board, shall bear interest at the rate of 1 per centum per month from and
after such date until payment plus interest is received by the Board.
Interest collected pursuant to this sub-section shall be paid into the unem-
ployment compensation fund.

(b) (Collection.) If, after due notice, any employer defaults in any
payment of contributions or interest thereon, the amount due shall be col-
lected by civil action in the name of the State, and the employer adjudged
in default shall pay the costs of such action. Civil actions brought under
this section to collect contributions or interest thereon from an employer
shall be heard by the court at the earliest possible date and shall be entitled
to preference upon the calendar of the court over all other civil actions
except petitions for judicial review under this Article and cases arising
under the workmen's compensation law of this State. The Board may pro-
ceed in the collection of contributions in the manner prescribed by Sec-
tions 154 to 159, inclusive, of Article 81 of the Annotated Code of
Maryland.

(c) (Priorities Under Legal Dissolutions or Distributions.) In the event
of any distribution of an employer's assets pursuant to an order of any
court under the laws of this State, including any receivership, assignment
for benefit of creditors, adjudicated insolvency, composition, or similar
proceeding, contributions then or thereafter due shall be paid in full prior
to all other claims except taxes and claims for wages of not more than
$250 to each claimant earned within six months of the commencement of
the proceeding. In the event of an employer's death, claims for contribu-
tions shall be allowable against his estate as preferred debts, as in the case
of taxes under Section 150, sub-section (e), of Article 81 of the Annotated
Code of Maryland. In the event of an employer's adjudication in bank-
ruptcy, judicially confirmed extension proposal, or composition, under the
Federal Bankruptcy Act of 1898, as amended, contributions then or
thereafter due shall be entitled to priority as a tax, as provided in Section
64 (a) of that Act (U. S. C. A., Title 11,' sec. 104 (a), as amended.

(d) (Refunds.) If not later than two years after the date on which any
contributions or interest thereon become due, an employer who has
paid such contributions or interest thereon shall make application for an
adjustment thereof in connection with subsequent contribution payments,
or for a refund thereof because such adjustment cannot be made, and
the Board shall determine that such contributions or interest or any por-
tion thereof was erroneously collected, the Board shall allow such employer
to make an adjustment thereof, without interest, in connection with sub-
sequent contribution payments by him, or if such adjustment cannot be
made the Board shall refund said amount, without interest from the
fund. For like cause and within the same period, adjustment or refund
may be so inade on the Board's own initiative.

(e) (Liability of Successor.) Any individual or employing unit which
acquires the organization, trade, or business or substantially all the assets
thereof from an employer, shall notify the Board in writing by registered
mail not later than five days prior to the acquisition. Unless such notice
is given such acquisition shall be void as against the Board if, at the time