WILLIAM DONALD SCHAEFER, Governor

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

deposit held

(2) $75,000 to $200,000                                                                           $75,000

(3) $200,000 to $500,000                                                                   $200,000

(4) Over $500,000                                                                                      $500,000

(d)  For the purpose of determining the penalty of any
blanket bond which the vendor or builder maintains in any
calendar year, the total amount of deposits considered held by a
vendor or builder shall be determined as of May 31 of any given
calendar year and the penalty of the bond shall be in accordance
with the amount of deposits held as of May 31.

[10-303.

The Insurance Division shall adopt reasonable rules and
regulations for the administration of the subtitle relating to
bonds and bond proceeds.]

10-303.

(A)  AN IRREVOCABLE LETTER OF CREDIT OBTAINED UNDER § 10-301
OF THIS SUBTITLE SHALL BE:

(1)  PAYABLE TO THE DIVISION OF CONSUMER PROTECTION OF
THE OFFICE OF THE ATTORNEY GENERAL FOR THE USE AND BENEFIT OF THE
PURCHASER EVERY PERSON PROTECTED BY THE PROVISIONS OF THIS
SUBTITLE; AND

(2)  IN A FORM APPROVED BY THE DIVISION.

(B)  AN IRREVOCABLE LETTER OF CREDIT MAY BE EITHER IN THE
FORM OF AN INDIVIDUAL LETTER OF CREDIT FOR EACH DEPOSIT ACCEPTED
BY A VENDOR OR BUILDER OR IF THE TOTAL AMOUNT OF MONEY AND
DEPOSITS ACCEPTED BY THE BUILDER EXCEEDS $10,000, THE LETTER OF
CREDIT MAY BE IN THE FORM OF A BLANKET LETTER OF CREDIT ASSURING
THE RETURN OF THE DEPOSITS RECEIVED BY THE VENDOR OR BUILDER.

(C)   IF THE LETTER OF CREDIT IS A BLANKET LETTER OF CREDIT,
THE AMOUNT OF THE LETTER OF CREDIT SHALL BE IN ACCORDANCE WITH
THE FOLLOWING SCHEDULE:

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