MARVIN MANDEL, Governor                               385

REVISOR'S NOTE: Subsection (a) is new language
derived from Art. 21, §10-301(b). The present
reference to the "Insurance Department" is
omitted because it is obsolete in light of Ch.
402, Acts of 1970 which established the
Insurance Division of the Department of
Licensing and Regulation.

Subsections (b) and (c) presently appear as
Art. 21, §10-301(b) and subsection (d)
presently appears as Art. 21, §10-301(c).

It should be noted that the existing schedule
in subsection (c) has an absurd effect. For
instance, the penalty for a $499,000 deposit
is $200,000, while the penalty for a $500,001
deposit is $500,000. This inequitable system
might be replaced by penalties based on a
percentage of the bond. The General Assembly
may wish to consider enacting appropriate
corrective legislation.

The only other changes are in style.

10-303. INSURANCE DIVISION TO ADOPT PROCEDURAL RULES AND
REGULATIONS TO IMPLEMENT SUBTITLE.

THE INSURANCE DIVISION SHALL ADOPT REASONABLE RULES
AND REGULATIONS FOR THE ADMINISTRATION OF THE SUBTITLE
RELATING TO BONDS AND BOND PROCEEDS.

REVISOR'S NOTE: This section presently appears as
Art. 21, §10-301(d) of the Code. The present
reference to "Insurance Department" is omitted
because it is obsolete in light of Ch. 402,
Acts of 1970 which established the Insurance
Division of the Department of Licensing and
Regulation. The present phrase requiring that
the rules and regulations "not be inconsistent
with this subtitle" is proposed for deletion
as unnecessary. The only other changes are in
style.

10-304. SALES EXEMPT FROM SUBTITLE.

THE PROVISIONS OF THIS SUBTITLE DO NOT APPLY TO:

(1) A SALE BY A VENDOR OR BUILDER WHO, FROM
THE TIME OF THE CONTRACT OF SALE UNTIL COMPLETION AND
GRANT OF THE RESIDENTIAL UNIT, HAS OUTSTANDING FEWER THAN
TEN CONTRACTS OF SALE OF SINGLE FAMILY RESIDENTIAL UNITS
TO BE CONSTRUCTED, FOR WHICH HE HAS ACCEPTED OR
CONTRACTUALLY IS ENTITLED TO RECEIVE SUMS OF MONEY IN THE