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Ch. 502 2006 LAWS OF MARYLAND
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(6) (I) A SURETY BOND MAY BE USED TO PAY CLAIMS BY A LANDLORD
FOR:
1. UNPAID RENT;
2. DAMAGE DUE TO BREACH OF LEASE; OR
3. DAMAGE BY THE TENANT OR THE TENANTS FAMILY,
AGENTS, EMPLOYEES, GUESTS, OR INVITEES IN EXCESS OF ORDINARY WEAR AND
TEAR TO THE LEASED PREMISES, COMMON AREAS, MAJOR APPLIANCES, OR
FURNISHINGS OWNED BY THE LANDLORD.
(II) A SURETY BOND DOES NOT REPRESENT LIQUIDATED DAMAGES
AND MAY NOT BE USED AS PAYMENT TO A LANDLORD FOR BREACH OF THE RENTAL
AGREEMENT, EXCEPT IN THE AMOUNT THAT THE LANDLORD IS ACTUALLY
DAMAGED BY THE BREACH.
(III) EXCEPT AS PROVIDED IN SUBPARAGRAPHS (I) AND (II) OF THIS
PARAGRAPH, A SURETY MAY NOT. DIRECTLY OR INDIRECTLY. MAKE ANY OTHER
PAYMENT TO A LANDLORD.
(7) AT LEAST 10 DAYS BEFORE A LANDLORD MAKES A CLAIM AGAINST A
SURETY BOND SUBJECT TO THIS SUBSECTION, THE LANDLORD SHALL SEND TO THE
TENANT BY FIRST-CLASS MAIL DIRECTED TO THE LAST KNOWN ADDRESS OF THE
TENANT, A WRITTEN LIST OF THE DAMAGES TO BE CLAIMED AND A STATEMENT OF
THE COSTS ACTUALLY INCURRED BY THE LANDLORD.
(8) (I) A TENANT SHALL RETAIN THE OPTION HAVE THE RIGHT TO PAY
ANY DAMAGES DIRECTLY TO THE LANDLORD OR REQUIRE THE LANDLORD TO USE
THE TENANT'S SECURITY DEPOSIT, IF ANY, BEFORE THE LANDLORD MAKES A CLAIM
AGAINST THE SURETY BOND.
(II) IF A TENANT PAYS ANY DAMAGES DIRECTLY TO THE LANDLORD
OR REQUIRES THE LANDLORD TO USE THE TENANT'S SECURITY DEPOSIT UNDER
SUBPARAGRAPH (I) OF THIS PARAGRAPH AND THE PAYMENT FULLY SATISFIES THE
CLAIM, THE LANDLORD SHALL FORFEIT THE RIGHT TO MAKE A CLAIM UNDER THE
SURETY BOND FOR ANY DAMAGES COVERED BY THE TENANT'S PAYMENT OR THE
AMOUNT DEDUCTED FROM THE TENANT'S SECURITY DEPOSIT IN ACCORDANCE WITH
SUBPARAGRAPH (I) OF THIS PARAGRAPH.
(9) (I) THE TENANT MAY DISPUTE THE LANDLORD'S CLAIM TO THE
SURETY BY SENDING A WRITTEN RESPONSE BY FIRST-CLASS MAIL TO THE SURETY
WITHIN 10 DAYS AFTER RECEIVING THE LANDLORD'S CLAIM ON THE SURETY.
(II) IF THE TENANT DISPUTES THE CLAIM, THE SURETY MAY NOT
REPORT THE CLAIM TO A CREDIT REPORTING AGENCY PRIOR TO OBTAINING A
JUDGMENT FOR THE CLAIM AGAINST THE TENANT.
(9) (10) IN ANY PROCEEDING BROUGHT BY THE SURETY AGAINST THE
TENANT ON A SURETY BOND UNDER THIS SUBSECTION:
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- 2536 -
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