4002

VETOES

Savings and Loan Insurance Corporation, the National Credit Union
Administration, the Maryland State Savings-Share Insurance
Corporation, or the Maryland Credit Union Insurance Corporation
maintained by the broker as a separate account for funds
belonging to others. [These] EXCEPT AS PROVIDED UNDER SUBSECTION
(C) OF THIS SECTION, THESE funds shall be retained in that
account until the transaction involved is consummated or
terminated, or until proper written instructions have been
received by the broker directing the withdrawal and other
disposition of the funds, at which time all funds shall be
promptly and fully accounted for by the broker. A licensee
hereunder may not commingle any funds with his own or use any
funds for any purpose other than the purpose for which the funds
were entrusted to him.

(b) Failure of any licensee to abide by the requirements of
this section shall, in addition to any other penalties provided
by law, be sufficient cause for the suspension or revocation of
his license, in the discretion of the Commission.

(C)  A LICENSEE DOES NOT VIOLATE THE LICENSEE'S ETHICAL OR
LEGAL DUTIES UNDER THIS SECTION BY PAYING INTEREST MONEY EARNED
ON TRUST MONEYS INTO THE RENTAL HOUSING RESOURCE FUND ESTABLISHED
UNDER TITLE 13, SUBTITLE 6 OF THE FINANCIAL INSTITUTIONS ARTICLE.

(D)  THE COMMISSION MAY NOT CHARGE A LICENSEE WITH A
VIOLATION OF THE LICENSEE'S ETHICAL OR LEGAL DUTIES, UNDER
SECTION 224(A) OF THIS ARTICLE, FOR PAYING INTEREST MONEY EARNED
ON TRUST MONEYS INTO THE RENTAL HOUSING RESOURCE FUND ESTABLISHED
UNDER TITLE 13, SUBTITLE 6 OF THE FINANCIAL INSTITUTIONS ARTICLE,
IF THE LICENSEE HAS COMPLIED WITH THE PROVISIONS OF § 227A-1(E)
OF THIS ARTICLE.

227A-1.

(A)  A LICENSEE MAY DEPOSIT TRUST MONEYS IN:

(1)  A NONINTEREST BEARING CHECKING ACCOUNT;

(2)  1 OR MORE SAVINGS ACCOUNTS; OR

(3)  ANY COMBINATION OF ACCOUNTS IN ANY BANK OR
SAVINGS AND LOAN ASSOCIATION AUTHORIZED BY FEDERAL OR STATE LAW
TO DO BUSINESS IN THE STATE.

(B)  IF IN THE JUDGMENT OF THE LICENSEE, ANY TRUST MONEYS
RECEIVED FROM A CLIENT, PURCHASER, OR BENEFICIAL OWNER ARE TOO
SMALL IN AMOUNT OR ARE REASONABLY EXPECTED TO BE HELD FOR TOO
SHORT A PERIOD OF TIME TO GENERATE AN AMOUNT OF INTEREST THAT, IN
THE JUDGMENT OF THE LICENSEE, MAY BE EQUIVALENT TO THE COST OF
ADMINISTRATION OF AN ACCOUNT FOR THE BENEFIT OF THE CLIENT OR
BENEFICIAL OWNER, THE TRUST MONEYS MAY BE POOLED AND COMMINGLED
BY THE LICENSEE WITH OTHER MONEYS HELD FOR OTHER CLIENTS OR