386                                          LAWS OF MARYLAND                          [Ch. 12

NATURE OF DEPOSITS, ESCROW MONEY, OR BINDER MONEY; AND

(2) A SALS BY OR THROUGH A LICENSED REAL
ESTATE BROKER IN CONNECTION WITH WHICH ALL SUMS OF MONEY
IN THE NATURE OF DEPOSITS, ESCROW MONEY, OR BINDER MONEY
ARE PAID TO A BROKER TO BE HELD IN THE ESCROW ACCOUNT OF
THE BROKER.

REVISOR'S NOTE: This section presently appears as
Art. 21, §10-301(e) of the Code. The only
changes are in style.

10-305. PENALTY.

IF A PERSON FAILS TO OBTAIN AND MAINTAIN A CORPORATE
SURETY BOND OR TO HOLD SUMS OF MONEY IN AN ESCROW ACCOUNT
AS REQUIRED UNDER THIS SUBTITLE, HE IS GUILTY OF A
MISDEMEANOR, AND, ON CONVICTION, IS SUBJECT TO A FINE NOT
EXCEEDING $500, OR IMPRISONMENT NOT EXCEEDING SIX MONTHS,
OR BOTH. ANY OFFICER, DIRECTOR, OR EMPLOYEE OF A
CORPORATION, WHO KNOWINGLY PARTICIPATES IN ANY ACT OR
OMISSION WHICH IS PART OF THE VIOLATION, IS SUBJECT TO
THE PENALTIES OF THIS SUBSECTION.

REVISOR'S NOTE: This section presently appears as
Art. 21, §10-301(f) of the Code, New language
is added to this section so that it
stylistically conforms with other penalty
provisions of articles revised by the
Commission to Revise the Annotated Code. The
only other changes are in style.

SUBTITLE 4. RECORDED LAND CONTRACTS.

10-40 1. LIMITATION ON ENFORCEMENT OF RECORDED LAND
CONTRACT.

WHEN THE BUYER IS NOT IN POSSESSION OF THE PROPERTY,
NO RECORDED CONTRACT FOR THE SALE OF THE PROPERTY IS
ENFORCEABLE OR CONSTITUTES AN ENCUMBRANCE OF THE TITLE,
AS AGAINST PERSONS OTHER THAN THE ORIGINAL PARTIES,
UNLESS WITHIN FIVE YEARS AFTER THE DATE SET OUT IN THE
RECORDED CONTRACT FOR THE DELIVERY OF THE DEED, AN ACTION
OR PROCEEDING IS COMMENCED TO ENFORCE THE CONTRACT. IF
NO DATE FOR THE DELIVERY OF THE DEED IS DESIGNATED IN THE
RECORDED CONTRACT, ANY ACTION OR PROCEEDING SHALL BE
COMMENCED WITHIN FIVE YEARS AFTER THE DATE WHEN,
ACCORDING TO THE TERMS OF THE RECORDED CONTRACT, THE
FINAL PAYMENT OR INSTALLMENT OF THE PURCHASE PRICE WAS
REQUIRED TO BE PAID. THE EXISTENCE OF A DISABILITY ON
THE PART OF EITHER PARTY TO THE CONTRACT AT THE
COMMENCEMENT OF THIS FIVE-YEAR PERIOD DOES NOT OPERATE TO
EXTEND THIS FIVE-YEAR PERIOD.