Ch. 597

LAWS OF MARYLAND

(B) SUBJECT TO THIS SECTION:

(1)  IF THE OWNER AND BENEFICIAL OWNER DO NOT INSTRUCT
OTHERWISE PURSUANT TO THE NOTICE OF IN THE CONTRACT OF SALE, A
REAL ESTATE BROKER SHALL DEPOSIT TRUST MONEY OF LESS THAN $5,000,
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;

(2)  THE REAL ESTATE BROKER SHALL 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

(3)  THE REAL ESTATE BROKER MAY:

(I)  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; AND

(II)   CHARGE THE MARYLAND HOUSING RESOURCE
CORPORATION A SERVICE FEE APPROVED BY THE COMMISSION PAID FROM
THE INTEREST COLLECTED FOR DEPOSITS MADE UNDER PARAGRAPH ITEM
PARAGRAPH (1) OF THIS SUBSECTION.

(c)  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)  At least quarterly, each financial institution in which
an account has been established under this section shall:

(1)  deduct from the total 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)  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 WRITTEN notice
that, in substance, states:

(1) "[the] IF THE OWNER AND BENEFICIAL OWNER DO NOT
INSTRUCT OTHERWISE, deposit money OF $5,000 OR MORE shall be
placed, at the sole discretion of the real estate broker, in a
noninterest bearing account or an interest bearing account that

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