Ch. 563                                       LAWS OF MARYLAND

subtitle, conditioned on the return of the sum to the purchaser
in the event the purchaser becomes entitled to the return of the
money; OR

(3) OBTAIN AND MAINTAIN AN IRREVOCABLE LETTER OF
CREDIT ISSUED BY A MARYLAND BANK IN THE FORM AND IN THE AMOUNTS
SET FORTH IN § 10-303 OF THIS SUBTITLE.

(b)  Except as provided under subsection (c) of this
section, the vendor or builder shall maintain the escrow account
[or], surety bond, OR IRREVOCABLE LETTER OF CREDIT until the
happening of the earlier of:

(1)  The granting of a deed to the property on which
the residential unit is located to the purchaser;

(2)  The return of the sum of money to the purchaser;
or

(3)  The forfeiture of the sum by the purchaser, under
the terms of the contract of sale relating to the purchase of the
residential unit.

(c)  A vendor or builder does not violate the vendor's or
builder's legal or ethical duties under this section by paying
interest money earned on the escrow account into the Housing
Resource Fund established under Title 13, Subtitle 6 of the
Financial Institutions Article.

10-302.

(a)  The bond shall be payable to the State for the use and
benefit of every person protected by the provisions of this
subtitle. The vendor or purchaser shall deposit the bond with the
[Insurance] Division OF CONSUMER PROTECTION OF THE OFFICE OF
THE ATTORNEY GENERAL.

(b)  The corporate surety bond obtained pursuant to the
provisions of § 10-301(a) shall be in a form approved by the
[Insurance] Division OF CONSUMER PROTECTION OF THE OFFICE OF
THE ATTORNEY GENERAL. The bond may be either in the form of an
individual bond for each deposit accepted by a vendor or builder
or if the total amount of money and deposits accepted by the
builder or vendor exceeds $10,000, it may be in the form of a
blanket bond assuring the return of the deposits received by the
vendor or builder.

(c)   If the bond is a blanket bond, the penalty of the bond
shall be in accordance with the following schedule:

Total Amount of Deposits Held                                             Penalty of Bond

(1) $10,000 to $75,000                                                               Full amount of

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