1454

LAWS OF MARYLAND

[Ch. 299

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 adjustments to be made
in a previously filed bond as he deems appropriate but
THE NEW AMOUNT SHALL not BE less than the average benefit
cost rate for that employer for the preceding two
calendar years. [In no event shall a] THE bond required
from an organization SHALL be [less than] the average
total payments in lieu of contributions made by that
organization in each of the two preceding taxable
years[.], BUT IN NO EVENT SHALL THE AMOUNT OF THE BOND BE
IN EXCESS OF THE MAXIMUM TAX RATE IN FORCE IN MARYLAND
TIMES THAT EMPLOYER'S TAXABLE PAYROLL FOR THE LAST
CALENDAR YEAR. 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
nailed 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 applicable interest and penalties provided for
in § 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) 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 Executive Director may deduct
from the money deposited under this paragraph by a
nonprofit organization or sell the securities it has so
deposited to the extent necessary to satisfy any due and
unpaid payments in lieu of contributions and any
applicable interest and penalties provided for in
subsection (d) (3) (vi) hereof. The Executive Director
shall require the organization within 30 days following
any deduction from a money deposit or sale of deposited
securities under the provisions of this subparagraph to
deposit sufficient additional money or securities to make
whole the organization's deposit at the prior level.
Any cash remaining from the sale of those securities
shall be a part of the organization's escrow account.
The Executive Director may, at any time, review the
adequacy of the deposit made by any organization. If,
as a result of that review, he determines that an
adjustment is necessary, he shall require the
organization to make additional deposit within 30 days of
written notice of his determination or shall return to it
that portion of the deposit as he no longer considers
necessary, whichever action is appropriate. Disposition
of income from securities held in escrow shall be
governed by the applicable provisions of the State law.