274          Laws of Maryland         [Ch. 46

companied by such payment it shall be the duty of the said
Department to immediately communicate with the Com-
missioner of Motor Vehicles or other proper officer of the
State, district, county or city named in such application
inquiring as to the facts in said application set forth,
which inquiry, when practical, may be made by telephone
or telegraph.

(e)  Where the request for such title is made through a
bona fide registered dealer of this State, as defined in this
Article, the applicant may anticipate the result of such in-
quiry by furnishing to the Department satisfactory in-
demnity bond to the State of Maryland in the penalty of a
sum equal to the fair value of the said motor vehicle as
estimated by the said Department and guaranteeing to
the purchaser of said motor vehicle the right of the appli-
cant to sell the said motor vehicle and to pass a good and
marketable title thereto.

(f)  Upon receipt of satisfactory information or upon
the filing of a satisfactory bond as aforesaid, the Depart-
ment shall issue the said title over the signature of the
Commissioner and the seal of his office, appropriately
describing therein the vehicle so to be sold, which said title
must be delivered by the vendor to the vendee at the time
such sale is made; and such title shall be surrendered by
the vendee to the Department when application is made
for a new certificate of title and registration of said vehicle.

(g)  In the event the applicant so furnishing such bond
transfers a defective title to such motor vehicle under such
permit, it shall be the duty of the Department to assign
the said bond to the person or persons who may have been
injured by reason of such defective title, and such assignee
shall then have the same rights thereunder as would have
attended had the said bond been given to such assignee.

(h) Violation of this section shall be deemed to be a mis-
demeanor and upon conviction shall be punishable by a fine
of not less than One ($1.00) Dollar nor more than Five
Hundred ($500.00) Dollars or by imprisonment for not
more than five (5) years, or both.

Sec. 2. And be it further enacted, That this Act shall
take effect June 1, 1952.

Approved March 28, 1952.