2986

LAWS OF MARYLAND

Ch. 579

SALES CONTRACT WITHOUT REASON AND WITHOUT LIABILITY. THE
PURCHASER, UPON CANCELLATION, IS ENTITLED TO THE RETURN OF ANY
DEPOSITS MADE ON ACCOUNT OF THE CONTRACT. THE RIGHTS OF THE
PURCHASER UNDER THIS SECTION MAY NOT BE WAIVED, AND ANY ATTEMPTED
WAIVER IS VOID.

11A-116.

(A)  (1) ALL PURCHASE MONEY RECEIVED BY OR ON BEHALF OF A
DEVELOPER FROM A PURCHASER FOR THE PURCHASE OR RESERVATION OF A
TIME-SHARE SHALL BE DEPOSITED IN AN ESCROW ACCOUNT DESIGNATED
SOLELY FOR THAT PURPOSE WITH A FINANCIAL INSTITUTION WHOSE
ACCOUNTS ARE INSURED BY A GOVERNMENT AGENCY UNTIL THE EXPIRATION
OF THE TIME FOR CANCELLATION OR ANY LATER TIME PROVIDED IN THE
CONTRACT.

(2) AFTER THE EXPIRATION OF THE CANCELLATION PERIOD
OR THAT PROVIDED IN THE CONTRACT, IF NO NOTICE OF CANCELLATION IS
RECEIVED, SUCH FUNDS OR INSTRUMENTS MAY BE RELEASED AS PROVIDED
IN SUBSECTION (B).

(B)  ANY PURCHASE MONEY RECEIVED BY OR ON BEHALF OF A
DEVELOPER FROM PURCHASERS OF TIME-SHARES MAY BE RELEASED TO THE
DEVELOPER, PROVIDED HE MAINTAINS A SURETY BOND FOR THE BENEFIT OF
EACH PURCHASER OF A TIME-SHARE, UNTIL THE HAPPENING OF THE
EARLIER OF:

(1)  THE CONVEYING OF GOOD AND MERCHANTABLE TITLE TO
THE TIME-SHARE ESTATE OR THE GRANTING OF AN UNENCUMBERED RIGHT TO
USE THE TIME-SHARE PROJECT PURSUANT TO A TIME-SHARE LICENSE;

(2)  THE RETURN OF THE PURCHASE MONEY TO THE
PURCHASER; OR

(3)  THE FORFEITURE OF THE PURCHASE MONEY BY THE
PURCHASER, UNDER THE TERMS OF THE CONTRACT.

(C)  AS USED IN THIS SECTION THE WORD "BOND" INCLUDES A BOND
ISSUED BY A SURETY OR A LETTER OF CREDIT ISSUED BY A FINANCIAL
INSTITUTION BY AN ISSUER ACCEPTABLE TO THE COMMISSION AND IN A
FORM ACCEPTABLE TO THE COMMISSION.

(D)  THE BOND MAY NOT BE CANCELED BY THE SURETY UNTIL 30
DAYS AFTER THE SURETY GIVES NOTICE OF CANCELLATION TO THE
COMMISSION.

(E)  THE PENALTY OF THE BOND SHALL BE ADJUSTED FROM TIME TO
TIME IN ACCORDANCE WITH THE FOLLOWING SCHEDULE:

TOTAL AMOUNT OF PURCHASE MONEY HELD PENALTY OF BOND

(1)  ZERO TO $200,000                                             $ 100,000

(2)  $200,000 TO $500,000                                             200,000