1276

LAWS OF MARYLAND

Ch. 313

requiring the financial institution or federal credit union
to make a written agreement concerning payment of the
certificate of deposit on demand of the State in the event
of a certain forfeiture; making stylistic changes; and
generally relating to issuing certificates of deposit in
lieu of a corporate surety for a revegetation certain bond
for open-pit or strip mining operations.

BY repealing and reenacting, with amendments,

Article - Natural  Resources

Section 7-506(c)

Annotated Code of  Maryland

(1983 Replacement  Volume and 1985 Supplement)

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

Article - Natural Resources

7-506.

(c) All bonds required by this section shall be on a form
provided by the Department, shall be payable to the State of
Maryland, and shall be executed by the operator and a corporate
surety licensed to do business in the State. Instead of a
corporate surety, any of the following are acceptable:

(1)  A deposit of cash or negotiable bonds of the
United States government. The cash deposit or market value of the
securities shall be at least equal to the required sum of the
bond. On receipt of a deposit of cash or securities, the
Department immediately shall place it with the State Treasurer,
who shall receive and hold the deposit in trust, in the name of
the State for the purposes for which it is made. The State
Treasurer is responsible for the custody and safekeeping of the
deposit. The operator, making the deposit, may demand and receive
from the State Treasurer all or any portion of any deposited
securities, if [he] THE OPERATOR replaces them with other
negotiable securities of the class specified as having a market
value at least equal to the sum of the bond;

(2)  A certificate of deposit in an amount equivalent
to the required bond, issued by [a bank] ANY FINANCIAL
INSTITUTION in the State AS DEFINED IN § 1-101 OF THE FINANCIAL
INSTITUTIONS ARTICLE, and accompanied by written agreement of the
[bank] FINANCIAL INSTITUTION to pay on demand to the State in the
event of forteiture; or :

(I) ISSUED BY:

1. A FINANCIAL INSTITUTION IN THE STATE,
AS DEFINED IN § 1-101 OF THE FINANCIAL INSTITUTIONS ARTICLE; OR