Ch. 563

LAWS OF MARYLAND

IF A LICENSEE COMPLIES WITH THE REQUIREMENTS OF THIS
SECTION, THE COMMISSION MAY NOT CHARGE THE LICENSEE WITH A
VIOLATION OF THIS TITLE OR THE CODE OF ETHICS ON THE BASIS OF
MAKING A DEPOSIT IN AN ACCOUNT THAT EARNS INTEREST PAYABLE TO THE
MARYLAND HOUSING RESOURCE CORPORATION.

(D)  DUTY OF FINANCIAL INSTITUTION.

AT LEAST QUARTERLY, A FINANCIAL INSTITUTION IN WHICH AN
ACCOUNT HAS BEEN ESTABLISHED UNDER THIS SECTION SHALL:

(1)  DEDUCT FROM THE AGGREGATE INTEREST ACCUMULATED ON
THE ACCOUNT ANY SERVICE CHARGE DUE ON THE ACCOUNT; AND

(2)  PAY THE NET INTEREST TO THE MARYLAND HOUSING
RESOURCE CORPORATION.

(E)  REQUIRED NOTICES IN CONTRACTS.

A REAL ESTATE BROKER WHO PARTICIPATES IN THE MARYLAND
HOUSING RESOURCE PROGRAM ESTABLISHED UNDER TITLE 13, SUBTITLE 6
OF THE FINANCIAL INSTITUTIONS ARTICLE SHALL INCLUDE IN ANY
CONTRACT OF SALE USED BY THE REAL ESTATE BROKER A NOTICE THAT, IN
SUBSTANCE, STATES: "UNLESS THE PURCHASER AND SELLER GIVE WRITTEN
INSTRUCTIONS TO THE CONTRARY, THE DEPOSIT MONEY SHALL BE PLACED,.
AT THE SOLE DISCRETION OF THE REAL ESTATE BROKER, IN A
NONINTEREST BEARING ACCOUNT OR AN INTEREST BEARING ACCOUNT THAT
PAYS ALL INTEREST TO THE MARYLAND HOUSING RESOURCE CORPORATION".

(F)  IMMUNITY FROM LIABILITY.

A REAL ESTATE BROKER WHO DEPOSITS TRUST MONEY IN AN INTEREST
BEARING ACCOUNT MAINTAINED UNDER THIS SECTION IS NOT LIABLE FOR
DAMAGES TO THE OWNER OR BENEFICIAL OWNER OF THE TRUST MONEY IF
THE DEPOSIT IS MADE IN COMPLIANCE WITH:

(1)  THE PROVISIONS OF THIS PART I OF THIS SUBTITLE;
AND

(2)  THE APPLICABLE PROVISIONS OF THE CODE OF ETHICS.

SUBCOMMITTEE COMMENT: This section is new language derived
without substantive change from former Art. 56, §
227A(d) and (e) and § 227A-l(a), (b), (d) and, as it
related to the immunity provided a real estate broker
who deposits trust money in an account on which
interest is payable to the Housing Resource
Corporation, (c)(1).

In subsection (a)(1) of this section, the phrase "if
the owner or beneficial owner does not instruct
otherwise" is added, on the recommendation of the
Joint Subcommittee on the Business Occupations

- 3860 -