Ch. 563                                       LAWS OF MARYLAND

SECTION 4. AND BE IT FURTHER ENACTED, That Section 1 of
this Act shall take effect July 1, 1990.

SECTION 3 4. 5. AND BE IT FURTHER ENACTED, That
Sections 2 and 3 of this Act shall take effect July 1, 1989.

Approved May 25, 1989.

CHAPTER 563

(Senate Bill 265)

AN ACT concerning

Deposits on New Homes - Letters of Credit

FOR the purpose of adding irrevocable letters of credit as an
alternative form of required security for certain deposits
received by certain vendors or builders of new single-family
residential units; establishing the form and amount of a
letter of credit obtained under the provisions of this Act;
repealing a requirement that corporate surety bonds obtained
to secure certain deposits be deposited with the Insurance
Division; repealing a requirement that corporate surety
bonds obtained to secure certain deposits be in a form
approved by the Insurance Division; requiring the bonds to
be deposited with and approved by the Division of Consumer
Protection of the Office of the Attorney General; repealing
a requirement that the Insurance Division adopt certain
rules and regulations; requiring the Division of Consumer

Protection of the Office of the Attorney General to

administer the provisions of this Act and Department of
Licensing and Regulation to adopt certain regulations;
making it a misdemeanor to fail to obtain and maintain an
irrevocable letter of credit under the provisions of this
Act; requiring the Division of Consumer Protection to
receive and investigate complaints from purchasers of new
single family residential units under certain circumstances
and to draw against a letter of credit obtained under the
provisions of this Act if the Division makes a certain
finding; and generally relating to deposits on new homes.

BY repealing and reenacting, with amendments,

Article - Real Property

Section 10-301, 10-302, and 10-305

Annotated Code of Maryland

(1988 Replacement Volume and 1988 Supplement)

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