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LAWS OF MARYLAND

Ch. 33

(1)   MAKES ANY MATERIAL MISSTATEMENT IN AN
APPLICATION FOR A LICENSE;

(2)   IN CONNECTION WITH ANY SECONDARY MORTGAGE
LOAN TRANSACTION:

(I)   COMMITS ANY FRAUD;

(II)   ENGAGES IN ANY DISHONEST ACTIVITIES;
OR

(III) MISREPRESENTS OR FAILS TO DISCLOSE
ANY MATERIAL FACTS TO ANYONE ENTITLED TO THAT INFORMATION;

(3)   VIOLATES ANY PROVISION OF THE MARYLAND
SECONDARY MORTGAGE LOAN LAW OR OF ANY RULE OR REGULATION
ADOPTED UNDER IT; OR

(4) OTHERWISE DEMONSTRATES UNWORTHINESS, BAD
FAITH, DISHONESTY, OR ANY OTHER QUALITY THAT INDICATES THAT
THE BUSINESS OF THE LICENSEE HAS NOT BEEN OR WILL NOT BE
CONDUCTED HONESTLY, FAIRLY, EQUITABLY, AND EFFICIENTLY.

REVISOR'S NOTE: This section is new language derived
without substantive change from the provisions of
Art. 66, § 50 that deal with the power of the
Bank Commissioner to suspend or revoke licenses.

The present statement that the Bank Commissioner
may "refuse to renew {a license}" for the
specified reasons is deleted as unnecessary in
practice and misleading. Under § 12—317 of this
subtitle, a hearing would be required before any
of the actions specified under this section may
be taken. As a consequence, there never would be
an occasion under this section for the Bank
Commissioner to refuse to renew a license,
because the Bank Commissioner always would be
obliged to grant a renewal pending the hearing
and a subsequent finding that the licensee
committed one of the acts specified in this
section. Once such a finding is made, the power
of the Bank Commissioner to suspend or revoke the
license would suffice to achieve the intent of
the present statute. However, this revision is
not intended to have any effect on the power of
the Bank Commissioner summarily to suspend a
license under certain circumstances, as provided
in the Administrative Procedure Act. See Art.
41, § 250A(c) of the Code.

The present provisions of Art. 66, § 50 that
relate to notice and hearing now appear in §
12-317 of this subtitle.

12-317. HEARINGS.