2780

LAWS OF MARYLAND

Ch. 523

BY repealing and reenacting, with amendments,

Article 56 - Licenses

Section 217A(d)(5) and (f)

Annotated Code of Maryland

(1979 Replacement Volume and 1983 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 56 - Licenses

217A.

(d) (5) If the Commission pays from the fund any amount in
settlement of a claim against a licensed real estate broker or
real estate salesman pursuant to an order under this section, the
license of the broker or salesman shall be automatically revoked
and no such broker or salesman shall be eligible to receive a new
license until he has repaid in full, plus interest at the rate of
10 percent a year, the amount paid from the guaranty fund on his
account. Furthermore, until the fund is repaid the broker or
salesman shall be barred from any association, in any capacity
whatsoever, including as a stockholder, investor, or through
ownership of any other interest, with any real estate broker or
firm doing business in this State. [A discharge in bankruptcy
shall not relieve a person from the penalties and disabilities
provided in this subsection.]

(f) (1) When said Commission has caused to be paid from
said guaranty fund any sum to the aggrieved person, the
Commission shall be subrogated BY OPERATION OF LAW to all of the
rights of the aggrieved person up to the amount paid, (and the
aggrieved person shall assign all of his right, title and
interest in the claim up to such amount paid to said Commission,]
and any amount and interest recovered by said Commission on the
claim shall be deposited to said guaranty fund. IN ADDITION, THE
COMMISSION SHALL BE DEEMED A CREDITOR WITH RESPECT TO THE AMOUNT
PAID FOR THE PURPOSE OF EXCEPTING TO ANY DISCHARGE OF THE
LICENSED BROKER OR SALESMAN UNDER 11 U.S.C.A. § 523 OR ANY
AMENDMENT THERETO.

(2) The Commission, the Attorney General, and other
State agencies or officials having authority to collect money
owed to the State shall act promptly and use their best efforts
to assure that money owed to the fund is collected and repaid
expeditiously.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1984.

Approved May 29, 1984.