626

LAWS OF MARYLAND

Ch. 33

12-410. REQUIRED BOND OR SECURITIES.

(A)       GENERAL RULE.

WITH THE APPLICATION FOR A NEW OR RENEWAL LICENSE, THE
APPLICANT EITHER SHALL FILE A SURETY BOND OR BOND RENEWAL
CERTIFICATE OR SHALL DEPOSIT SECURITIES WITH THE BANK
COMMISSIONER AS PROVIDED IN THIS SECTION.

(B)   BOND.

(1)       A SURETY BOND FILED UNDER THIS SECTION SHALL
RUN TO THIS STATE FOR THE BENEFIT OF ANY PERSON WHO HAS A
CAUSE OF ACTION AGAINST THE APPLICANT FOR ANY LIABILITY
INCURRED ON A DRAFT ISSUED OR SOLD BY THE APPLICANT OR BY
ANY AGENT OF THE APPLICANT.

(2)       THE SURETY BOND SHALL BE:

(I)       IN THE AMOUNT REQUIRED BY SUBSECTION
(D) OF THIS SECTION; AND

(II)        WITH SURETIES THAT THE BANK

COMMISSIONER APPROVES. ISSUED BY A BONDING COMPANY OR

INSURANCE COMPANY THAT IS AUTHORIZED TO DO BUSINESS IN THIS
STATE; AND

(III) APPROVED BY THE BANK COMMISSIONER.

(C)   SECURITIES.

(1)   SECURITIES DEPOSITED UNDER THIS SECTION
SHALL CONSIST OF:

(I)   GENERAL OBLIGATIONS OF OR OBLIGATIONS
FULLY GUARANTEED BY THE UNITED STATES; OR

(II)   DIRECT GENERAL OBLIGATIONS OF THIS
STATE.

(2)   THE SECURITIES SHALL:

(I)   HAVE A MARKET VALUE EQUAL TO THE
AMOUNT REQUIRED BY SUBSECTION (D) OF THIS SECTION; AND

(II)   BE HELD BY THE BANK COMMISSIONER TO
SECURE THE SAME OBLIGATIONS AS ARE REQUIRED TO BE SECURED BY
A BOND UNDER SUBSECTION (B) OF THIS SECTION.

(3)   AT ANY TIME, A LICENSEE MAY EXCHANGE
DEPOSITED SECURITIES FOR OTHER SECURITIES THAT MEET THE
REQUIREMENTS OF THIS SUBSECTION.

(4)   THE BANK COMMISSIONER MAY SELL OR TRANSFER
DEPOSITED SECURITIES AND DISPOSE OF THEIR PROCEEDS ONLY ON
THE ORDER OF A COURT OF COMPETENT JURISDICTION.