HARRY HUGHES, Governor

57

THIS ARTICLE, a real estate salesperson, or a corporation formed
and wholly owned by a real estate salesperson or salespersons,
for the rendering of any service, or the doing of any of the acts
by this subtitle forbidden to be rendered or performed by other
than licensees.

DRAFTER'S NOTE: This clarifies a cross-reference in Article
56, § 227.

The cross-reference was added in Ch. 351 of the Acts
of the General Assembly of 1939.

The clarification was suggested by the Computer
Division of the Department of Legislative Reference..

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] STATE OF MARYLAND DEPOSIT INSURANCE FUND
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) 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.

DRAFTER'S NOTE: This amends Article 56, § 227A to replace
an obsolete reference to the Maryland Savings-Share
Insurance Corporation (MSSIC) with a reference to its
successor, the State of Maryland Deposit Insurance
Fund Corporation (MDIF).

Ch. 6 of the Acts of the First Special Session of the
General Assembly of 1985 eliminated the MSSIC and
replaced it with the MDIF.

The obsolete reference was noted by the professional
staff of the Legislative Division of the Department of
Legislative Reference.