WILLIAM DONALD SCHAEFER, Governor Ch. 563

(3) ANY COMBINATION OF THESE ACCOUNTS.

SUBCOMMITTEE COMMENT: This section is new language derived
without substantive change from former Art. 56, §
227A(b).

The Joint Subcommittee on the Business Occupations
Article interpreted former Art. 56, § 227A to
authorize a real estate broker to place trust money in
either a noninterest bearing checking account or an
interest bearing savings account on which the interest
is payable to the owner or beneficial owner of the
trust money. The Joint Subcommittee found these
options to exist in addition to the broker's option of
depositing the trust money in an interest bearing
account the interest on which is payable to the
Maryland Housing Resource Corporation. However,
representatives of the Commission and of the industry
advised the Joint Subcommittee that there never was an
intention to give a real estate broker authority to
place trust money in an interest bearing account
(other than an account the interest on which is
payable to the Maryland Housing Resource Corporation)
unless the broker was acting under instructions or
pursuant to an agreement, as authorized under §
4-505(c) of this subtitle. These representatives also
stated that they were opposed to any provision in the
law that would allow a real estate broker to
determine, in the broker's own discretion, to deposit
trust money in an interest bearing account.
Therefore, in deference to these representatives, the
Joint Subcommittee recommended that, under the revised
law, a real estate broker should not be allowed to
elect, on the broker's own authority, to deposit trust
money in an interest bearing account, unless the
interest is payable to the Housing Resource
Corporation. Based on this recommendation, in item
(2) of this section, the words "noninterest bearing"
are added to modify expressly the term "savings
account".

The former reference to depositing trust money in "1
or more" savings accounts is deleted as unnecessary in
light of Art. 1, § 8 of the Code, which provides that
the singular includes the plural.

Defined terms: "Beneficial owner" § 4-501
"Real estate broker" § 4-101
"Trust money" § 4-501

505. MAINTENANCE AND DISPOSITION OF TRUST MONEY.

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