WILLIAM DONALD SCHAEFER, Governor Ch. 597

BY adding to

Article - Financial Institutions

Section 5-514

Annotated Code of Maryland                                                                     

(1986 Replacement Volume and 1988 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Business Occupations

16-504.

Unless the owner and beneficial owner give written
instructions to the contrary, a real estate broker may deposit
trust money OF $5,000 OR MORE in:

(1)  a noninterest bearing checking account;

(2)  a noninterest bearing savings account; or

(3)  any combination of these accounts.
16-506.

(a) Subject to this section:

(1)   if the owner and beneficial owner do not instruct
otherwise, a real estate broker may deposit trust money OF $5,000
OR MORE, 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.; AND

[(b)] (3) [A] THE real estate broker may:

[(1)] (I) establish, in a financial institution that
meets the requirements of § 16-503 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)] (II) 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.

- 3639 -