WILLIAM DONALD SCHAEFER, Governor

Ch. 563

Former Art. 56, § 227A-l(c)(2) conditioned the
investment of trust money by a real estate broker on
instructions to the broker by either the client (i.e.,
the owner) or the beneficial owner of the trust money,
but appeared to require that if the authority were to
be provided by agreement, both the owner and
beneficial owner had to be a party to the agreement.
This inconsistency did not appear to be intentional.
Therefore, subsection (c)(1) of this section is
revised to require that both the owner and beneficial
owner of trust money instruct the real estate broker
on investment of trust money.

Defined terms: "Beneficial owner" § 4-501

"Real estate" § 4-101 "Real estate broker" § 4-101

"Trust money" § 4-501

4-506. ACCOUNTS EARNING INTEREST TO BENEFIT MARYLAND HOUSING
RESOURCE CORPORATION.

(A)  IN GENERAL.
SUBJECT TO THIS SECTION:

(1)  IF THE OWNER OR AND BENEFICIAL OWNER DOES DO NOT
INSTRUCT OTHERWISE, A REAL ESTATE BROKER MAY DEPOSIT TRUST MONEY,
EXCEPT RENTAL SECURITY DEPOSITS, IN AN ACCOUNT THAT EARNS
INTEREST PAYABLE TO THE MARYLAND HOUSING RESOURCE CORPORATION
ESTABLISHED UNDER TITLE 13, SUBTITLE 6 OF THE FINANCIAL
INSTITUTIONS ARTICLE; AND

(2)  THE DECISION WHETHER TO DEPOSIT TRUST MONEY IN
SUCH AN ACCOUNT SHALL BE IN THE SOLE DISCRETION OF THE REAL
ESTATE BROKER.

(B)  ESTABLISHMENT OF ACCOUNT; DEPOSIT OF TRUST MONEY.
A REAL ESTATE BROKER MAY:

(1)  ESTABLISH IN A FINANCIAL INSTITUTION MEETING THE
REQUIREMENTS OF § 4-503 OF THIS SUBTITLE AN INTEREST BEARING
ACCOUNT ALL INTEREST ON WHICH IS PAYABLE TO THE MARYLAND HOUSING
RESOURCE CORPORATION, EXCLUSIVELY FOR THE CHARITABLE PURPOSES SET
FORTH IN THE STATUTORY CHARTER OF THAT CORPORATION; AND

(2)  DEPOSIT AND COMMINGLE IN THAT ACCOUNT THE TRUST
MONEY OF ANY OWNER OR BENEFICIAL OWNER WITH THE TRUST MONEY OF
OTHER OWNERS AND BENEFICIAL OWNERS.

(C)  COMPLIANCE WITH REQUIREMENTS.

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