Marvin Mandel, Governor                          1417

§ 7-207. Release from liability.

(a)    A person shall be relieved from the requirement for deposit
of security for the benefit or protection of another person injured or
damaged in the accident in the event he is released from liability by
the other person, or if at any time prior or subsequent to the date of
a suspension under section 7-206, the person has satisfied any condi-
tion stated in paragraph 10 of section 7-203.

(b)    A covenant not to sue shall relieve the parties thereto as to
each other from the security requirements of this subtitle.

(c)    If the department has evaluated the injuries or damage to any
minor in an amount not more than $100 the department may accept,
for the purposes of this part only, evidence of a release from liability
executed by a natural guardian or a legal guardian on behalf of the
minor without the approval of any court or judge.

§ 7-208. Adjudication of nonliability.

A person shall be relieved from the requirement for deposit of
security in respect to a claim for injury or damage arising out of the
accident in the event the person has been finally adjudicated not to
be liable in respect to the claim.

§ 7-209. Agreements for payment of damages.

(a)    Any two or more of the persons involved in or affected by an
accident as described in section 7-201 may enter at any time into a
written agreement for the payment of an agreed amount with respect
to all claims of any of the persons because of bodily injury to or death
or property damage arising from the accident, which agreement may
provide for payment in installments, and may file a signed copy
thereof with the department.

(b)    The department, to the extent provided by any written agree-
ment filed with it, shall not require the deposit of security and shall
terminate any prior order of suspension, or, if security has previously
been deposited, the department shall immediately return the security
to the depositor or his personal representative.

(c)    In the event of a default in any payment under the agree-
ment and upon notice of the default the department shall take action
suspending the license or registration of the person in default as
would be appropriate in the event of failure of the person to deposit
security when required under this subtitle.

(d)    The suspension shall remain in effect and the license or reg-
istration shall not be restored unless and until:

(1)    Security is deposited as required under this subtitle in an
amount the department determines;

(2)    When, following any such default and suspension, the person
in default has paid the balance of the agreed amount; or

(3) One year has elapsed following the effective date of the sus-
pension and evidence satisfactory to the department has been filed
with it that during this period no action at law upon the agreement
has been instituted and is pending.