1334                               Laws of Maryland                          Ch. 534

by the department and executed by the applicant, and either accom-
panied by the deposit of cash with the department or also executed
by a person authorized to conduct a surety business in this State.
The bond shall be in an amount equal to one and one-half times the
value of the vehicle as determined by the department and conditioned
to indemnify any prior owner and lienholder and any subsequent
purchaser of the vehicle or person acquiring any security interest in
it, and their respective successors in interest, against any expense,
loss, or damage, including reasonable attorney's fees, by reason of
the issuance of the certificate of title of the vehicle or on account
of any defect in or undisclosed security interest in the right,
title, and interest of the applicant in and to the vehicle. Any
such interested person has a right of action to recover on the bond
for any breach of its conditions, but the aggregate liability of the
surety to all persons shall not exceed the amount of the bond. The
bond and any deposit accompanying it shall be returned at the end
of 3 years or prior thereto if the vehicle is no longer registered in
this State and the currently valid certificate of title is surrendered
to the department, unless the department has been notified of the
pendency of an action to recover on the bond.

(b)    Any person who has purchased a used vehicle in another
state, and who is entitled to register the vehicle and receive a certif-
icate of title for it in this State except for the fact that no certificate
of inspection has been obtained for the vehicle as required by sub-
title 13, may apply for the issuance of a certificate of title and for
registration of the vehicle in this State, and the department may
temporarily register the vehicle and withhold issuance of a certificate
of title until a certificate of inspection has been obtained and pre-
sented to the department. The department shall prescribe the period
during which the temporary registration shall be valid.

(c)    When a certificate of title has been issued by another state
for a vehicle which is engaged in interstate operation, or when a
vehicle engaged in interstate operation is registered in another state,
the department, if it determines that it is necessary or desirable to do
so, may register the vehicle in this State without delivering a certif-
icate of title, upon submission to the department of documents and
supporting statements the department reasonably requires and upon
payment of the prescribed fees.

§ 3-110. Refusing certificate of title.

The department shall refuse issuance of a certificate of title if

1.    The department has reasonable grounds to believe that the
applicant is not the owner of the vehicle or that issuance of a certif-
icate of title to the applicant would constitute a fraud against
another person;

2.    The department has reasonable grounds to believe that the
application contains a false or fraudulent statement;

3.    The applicant fails to furnish required information or docu-
ments or any additional information the department reasonably re-
quires;

4. Any required fee has not been paid; or

5. The applicant is not entitled to a certificate of title under this
article.