1758                               Laws of Maryland                        [Ch. 790

that are authorized by this paragraph, for addition of new mem-
bers to, and withdrawal of active members from, those accounts,
and for the determination of the amounts that are payable under
this paragraph by members of the group and the time and manner
of those payments.

(e) Security for payments in lieu of contributions.—Employers
other than political subdivisions of the State of Maryland who elect
under subsection (d) to make payment in lieu of contributions shall
be subject to the provisions of this subsection.

(1) Provision of bond or other security.—Any non-profit organi-
zation that elects to become liable for payments in lieu of contributions
shall be required within 30 days after the effective date of its election,
to execute and file with the Executive Director a surety bond ap-
proved by the Executive Director. It may elect instead to deposit
with the Executive Director money or securities in the discretion
of the Executive Director. The amount of that bond or deposit shall
be determined in accordance with the provisions of this paragraph.

(i) Amount.—The amount of the bond or deposit required by
this paragraph shall be equal to 2.7 percent of the organization's
total wages paid for employment as defined in Section 20 (n) for
the four calendar quarters immediately preceding the effective date
of the election, the renewal date in the case of a bond, or the biennial
anniversary of the effective date of election in the case of a deposit
of money or securities, whichever date shall be most recent and
applicable. If the non-profit organization did not pay wages in each
of four such calendar quarters, the amount of the bond or deposit
shall be as determined by the Executive Director.

(ii) Bond.—Any bond deposited under this paragraph shall be in
force for a period of not less than two taxable years and shall be
renewed with the approval of the Executive Director, at those times
as the Executive Director may prescribe, but not less frequently than
at two year intervals as long as the organization continues to be
liable for payments in lieu of contributions. The Executive Director
shall require whatever adjustments to be made in a previously filed
bond as he deems appropriate BUT NOT LESS THAN THE
AVERAGE BENEFIT COST RATE FOR THAT EMPLOYER
FOR THE PRECEDING TWO CALENDAR YEARS. IN NO
EVENT SHALL A BOND REQUIRED FROM AN ORGANIZA-
TION BE LESS THAN THE AVERAGE TOTAL PAYMENTS IN
LIEU OF CONTRIBUTIONS MADE BY THAT ORGANIZA-
TION IN EACH OF THE TWO PRECEDING TAXABLE YEARS.
If the bond is to be increased, the adjusted bond shall be filed by
the organization within 30 days of the date notice of the required
adjustment was mailed or otherwise delivered to it. Failure by
any organization covered by that bond to pay the full amount of
payments in lieu of contributions when due, together with any appli-
cable interest and penalties provided for in Section 15 of this article,
shall render the surety liable on the bond to the extent of the bond,
as though the surety was that organization.

(iii) Deposit of money or securities.—Any deposit of money or
securities in accordance with this paragraph shall be retained by the
Executive Director in an escrow account until liability under the
election is terminated, at which time it shall be returned to the
organization, less any deductions as hereinafter provided. The Execu-