VETOES

It is very similar to Senate Bill 265 in that most of the
regulatory provisions are the same. However, Senate Bill 265 is
administered by the Insurance Division of the Department of
Licensing and Regulation, while House Bill 177 would have been
administered by the Consumer Protection Division of the Attorney
General's Office and enforced under the Consumer Protection Act.

Senate Bill 265 was passed by the General Assembly and signed by
me on May 25, 1989, therefore, it is not necessary for me to sign
House Bill 177.

Sincerely,

William Donald Schaefer

Governor

House Bill No. 177

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 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,

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