HARRY HUGHES, Governor                                       3477

(B) A CUSTOM HOME BUILDER MAY MAKE WITHDRAWALS FROM AN
ESCROW ACCOUNT ESTABLISHED IN COMPLIANCE WITH SUBSECTION (A)(1)
OF THIS SECTION SOLELY FOR THE PURPOSE OF;

(1) RETURNING ALL OR A PORTION OF THE SUM OF MONEY TO
THE BUYER;

(2) PAYING DOCUMENTED CLAIMS OF PERSONS WHO HAVE
FURNISHED LABOR OR MATERIAL, INCLUDING FUEL, IN CONNECTION WITH
THE CUSTOM HOME CONTRACT FOR WHICH THE FUNDS WERE ADVANCED;

(3) PAYING A SUM OF MONEY TO THE CUSTOM HOME BUILDER
IF THE BUYER FORFEITS THE SUM UNDER THE TERMS OF THE CONTRACT OF
SALE; OR

(4) FINAL PAYMENT UPON THE ISSUANCE OF AN OCCUPANCY
PERMIT OR POSSESSION.

(C) IN LIEU OF THE ESCROW ACCOUNT REQUIRED UNDER SUBSECTION
(A) OF THIS SECTION, A CUSTOM HOME BUILDER MAY ESTABLISH AND
MAINTAIN A SEPARATE ESCROW ACCOUNT FOR EACH CUSTOM HOME CONTRACT
FOR WHICH HE RECEIVES CONSIDERATION THAT HE WOULD BE REQUIRED TO
PLACE INTO ESCROW UNDER SUBSECTION (A). EACH INDIVIDUAL ESCROW
ACCOUNT SHALL REQUIRE THE SIGNATURE OF BOTH THE BUYER AND THE
CUSTOM HOME BUILDER FOR ANY WITHDRAWAL. DEPOSITS AND WITHDRAWALS
TO AND FROM THIS ACCOUNT SHALL BE GOVERNED BY THE REQUIREMENTS OF
SUBSECTIONS (A) AND (B) OF THIS SECTION.

(D) (1) IN LIEU OF THE ESCROW ACCOUNTS REQUIRED UNDER
SUBSECTIONS (A) OR (C) OF THIS SECTION, A CUSTOM HOME BUILDER MAY
OBTAIN AND MAINTAIN A CORPORATE SURETY BOND IN THE FORM AND IN
THE AMOUNTS REQUIRED OF A VENDOR OR BUILDER UNDER § 10-302 OF
THIS TITLE.

(2) THE SURETY BOND OBTAINED SHALL BE CONDITIONED ON
THE RETURN OF THE SUM TO THE BUYER IN THE EVENT THE BUYER BECOMES
ENTITLED TO THE RETURN OF THE MONEY.

(3) THE CUSTOM HOME BUILDER SHALL MAINTAIN THE SURETY
BOND UNTIL THE CUSTOM HOME BUILDER COMPLIES WITH § 9-114 OF THIS
ARTICLE.

10-505.

EVERY CUSTOM HOME CONTRACT BETWEEN A CUSTOM HOME BUILDER AND
THE BUYER MUST BE IN WRITING. THE CUSTOM HOME CONTRACT SHALL;

(1) ENCLOSE INCLUDE A DRAW SCHEDULE THAT SHALL BE SET
FORTH ON A SEPARATE SHEET OF PAPER AND THAT SHALL BE SEPARATELY
SIGNED BY THE BUYER AND THE CUSTOM HOME BUILDER;

(2) REQUIRE THE CUSTOM HOME BUILDER, ON WRITTEN
REQUEST OF THE BUYER, TO IDENTIFY TO THE EXTENT KNOWN THE NAMES
OF THE PRIMARY SUBCONTRACTORS WHO WILL BE WORKING ON THE CUSTOM

HOME;