Marvin Mandel, Governor                        1747

(c) Provided, however, this section shall not apply if the deposit
is held by a licensed real estate broker.]

43.

(a)    Whenever, in connection with the sale and purchase of a
new single family residential unit located in this State, which unit
shall not have been completed at the time of contracting the sale, the
seller or builder shall obligate the purchaser to pay and shall receive
from the purchaser any sum of money prior to completion of the
residential unit and conveyance of the realty to the purchaser, the
builder or seller shall either:

(1)    deposit or hold such sum, of money in an escrow account
segregated from all other funds of said SELLER OR builder to be
held to assure the return of the sum of money to the purchaser in the
event the purchaser shall become entitled to a return of such sum of
money; or

(2)    obtain and maintain a corporate surety bond in the form
and in the amounts set forth in subsection (b) hereof conditioned
upon the return of such sum of money to the purchaser in the event
the purchaser shall become entitled to the return of such sum of
money.

The escrow account or surety bond shall be maintained by such
seller or builder until the happening of the earlier of (1) the convey-
ancing of a deed to the realty upon which the residential unit is
situated, to the purchaser, his heirs or assigns; or (2) the return of
the sum of money to the purchaser, his heirs or assigns; or (3) the
forfeiture of the sum of money by the purchaser, his heirs, or as-
signs, under the terms of the contract of sale relating to the purchase
of the residential unit.

(b)    The corporate surety bond allowed to be obtained pursuant
to the provisions of subsection (a) hereof shall be in a form approved
by the Attorney General of Maryland STATE INSURANCE DE-
PARTMENT and shall be payable to the State of Maryland for the
use and benefit of all persons protected by the provisions of this sub-
title and shall be deposited by each seller or builder within the provi

sions hereof with the Special Assistant Attorney General in charge

of consumer protection appointed under the terms of the Consumer
Protection Act, Article 83, Section 24 (Annotated Code of Maryland
1968 Replacement Volume) Laws of 1967, Chapter 388 WITH THE
STATE INSURANCE DEPARTMENT. Such corporate surety bonds
may be either in the form of individual bonds for each deposit ac-
cepted by a seller or builder, or where the total amount of money and
all deposits accepted by such builder or seller shall exceed the sum of
$10,000, may be in the form of a blanket bond assuring the return of
the deposits received by said seller or builder. Where the bond shall be
a blanket bond, the penalty of the bond shall be in accordance with
the following schedule:                          Penalty of Bond

Total Amount of Deposits Hold Full amount of deposits held
$1. $10,000 to $75,000

$75,000

$200,000