LAWS OF MARYLAND                             [Ch. 12

REVISOR'S NOTE: This section presently appears as
Art. 21, §10-301(a) of the Code and is set
forth here for organizational purposes. In
subsection (b), the present reference to "his
heirs or assigns" is proposed for deletion in
light of §1-103. The only other changes are
in style.

10-302. BOND PAYABLE TO STATE; DEPOSIT; FORM OF BOND.

(A)   BOND TO BE PAYABLE TO STATE; DEPOSIT.

THE BOND SHALL BE PAYABLE TO THE STATE FOR THE USE
AND BENEFIT OF EVERY PERSON PROTECTED BY THE PROVISIONS
OF THIS SUBTITLE. THE VENDOR OR PURCHASER SHALL DEPOSIT
THE BOND WITH THE INSURANCE DIVISION.

(B)   FORM OF SURETY BOND GENERALLY.

THE CORPORATE SURETY BOND OBTAINED PURSUANT TO THE
PROVISIONS OF §10-301(A) SHALL BE IN A FORM APPROVED BY
THE INSURANCE DIVISION. THE BOND MAY BE EITHER IN THE
FORM OF AN INDIVIDUAL BOND FOR EACH DEPOSIT ACCEPTED BY A
VENDOR OR BUILDER OR IF THE TOTAL AMOUNT OF MONEY AND
DEPOSITS ACCEPTED BY THE BUILDER OR VENDOR EXCEEDS
$10,000, IT MAY BE IN THE FORM OF A BLANKET BOND ASSURING
THE RETURN OF THE DEPOSITS RECEIVED BY THE VENDOR OR
BUILDER.

(C)   BOND PENALTY IN CASE OF BLANKET BOND.

IF THE BOND IS A BLANKET BOND, THE PENALTY OF THE
BOND SHALL BE IN ACCORDANCE WITH THE FOLLOWING SCHEDULE:

TOTAL AMOUNT OF DEPOSITS HELD                                  PENALTY OF BOND

(1)     $10,000 TO $75,000                                            FULL AMOUNT OF

DEPOSIT HELD

(2)      $75,000 TO $200,000                                          $75,000
(3) $200,000 TO $500,000                                       $200,000
(4) OVER $500,000                                                         $500,000

(D)   DETERMINATION OF TOTAL AMOUNTS   OF DEPOSIT.

FOR THE PURPOSE OF DETERMINING THE PENALTY OF ANY
BLANKET BOND WHICH THE VENDOR OF BUILDER MAINTAINS IN ANY
CALENDAR YEAR, THE TOTAL AMOUNT OF DEPOSITS CONSIDERED
HELD BY A VENDOR OR BUILDER SHALL BE DETERMINED AS OF MAY
31 OF ANY GIVEN CALENDAR YEAR AND THE PENALTY OF THE BOND
SHALL BE IN ACCORDANCE WITH THE AMOUNT OF DEPOSITS HELD
AS OF MAY 31.