HARRY HUGHES, Governor                                    1413

227A.

(a) In any case in which a licensee hereunder is entrusted
with, or receives and accepts, or otherwise holds, deposit moneys
or other trust moneys, of whatever kind or nature, or instruments
representing the same, concerning transactions involving real

estate within the State of Maryland, such moneys or instruments,

in the absence of proper written instructions to the contrary,
shall be expeditiously deposited in an account in a financial
institution located within Maryland whose deposits are insured by
either the Federal Deposit Insurance Corporation, the Federal
Savings and Loan Insurance Corporation, the National Credit Union
Administration, the [Maryland State Savings-Share Insurance

Corporation] MARYLAND DEPOSIT INSURANCE CORPORATION, or the

Maryland Credit Union Insurance Corporation maintained by the
broker as a separate account for funds belonging to others,
Except as provided under subsection [(c)] (D) 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) FOR THE PURPOSES OF THIS SECTION, A LICENSEE SHALL
PLACE DEPOSIT MONEYS OR OTHER TRUST MONEYS, IN THE ABSENCE OF
PROPER WRITTEN INSTRUCTIONS TO THE CONTRARY, IN A NONINTEREST
BEARING CHECKING ACCOUNT, 1 OR MORE SAVINGS ACCOUNTS, OR ANY
COMBINATION OF ACCOUNTS.

[(b)] (C) 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)] (D) 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)] (E) The Commission may not charge a licensee with a
violation of the licensee's ethical or legal duties, under §
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-l(e) of
this article.

227A-1.

[(a) A licensee may deposit trust moneys in: