1804                             Laws of Maryland                      [Ch. 717

43I 43H, inclusive, to said Article, title and subtitle, to follow im-
mediately after Section 43 thereof, providing that landlords are
to pay interest on security deposits, limiting the amount that a
landlord may require for a security deposit, providing how and
where security deposits are to be held, providing penalties for
violation of this subtitle and relating generally to security deposits.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sections 41, 42 and 43 of Article 53 of the Annotated Code of
Maryland (1972 Replacement Volume), title "Landlord and Tenant,"
subtitle "Tenant's Deposits," be and they are hereby repealed and
that new Sections 41, 42 and 43 be and they are hereby enacted
in lieu thereof, to stand in the place of the sections repealed; that
new Sections 43A through 43I 43H, inclusive, be and they are hereby
added to said Article, title and subtitle, all to read as follows:

[41.

When a landlord or an authorized agent of the landlord requires
a deposit of money from a tenant in an apartment building and/or
development with 4 or more units prior to or in connection with
any lease, which is not credited to rent, the deposit shall be deposited
to an escrow account.

42.

Within twenty days after the termination of a lease, any money
held in connection with the lease in an escrow account under the
provisions of Section 41 of this subtitle shall be returned to the
tenant; but the landlord may deduct from the amount returned an
amount equal to any rent past due, an amount equal to damages for
lost future rent where the tenant vacates the leased premises con-
trary to the terms of the lease, and for any damage to the property
for which the tenant may properly be held liable.

43.

In any suit by a tenant to recover a deposit under this subtitle,
where the tenant has successfully established his right to the return
of all or part of the deposit, the tenant shall be entitled to recover
as damages the amount of the deposit plus court costs including a
reasonable attorney's fee. If the court should find that the suit was
brought by the tenant without substantial justification, the landlord
shall be entitled to recover a reasonable attorney's fee.]

41.

A security deposit is any payment of money, including the pay-
ment of the last month's rent in advance of the time it is due, given
to a landlord by a tenant in order to protect the landlord against
non-payment of rent or damage to the leased premises.

42.

A landlord shall not impose a security deposit in excess of the
equivalent of one TWO month's rent, OR $50.00, WHICHEVER IS
GREATER, per dwelling unit, regardless of the number of tenants.

(i) If a landlord charges more than the equivalent of one TWO
month's rent, OR $50.00, WHICHEVER IS GREATER, per dwelling
unit as a security deposit, the tenant has the right to recover up to
threefold the extra amount so charged, plus reasonable attorney's fees.