WILLIAM DONALD SCHAEFER, Governor                             Ch. 52

(c) The Commission may adopt regulations for the administration of a Guaranty
Fund.

16-407.

(a)     The Commission shall act promptly on a claim made under this subtitle.

(b)     Upon receipt of a claim, the Commission shall:

(1)      forward a copy of the claim:                                                               

(i) to each licensee alleged to be responsible for the act or omission
giving rise to the claim;

(ii) to each unlicensed employee alleged to be responsible for the act
or omission giving rise to the claim; and

(iii) if the licensee alleged to be responsible for the act or omission
giving rise to the claim is an associate real estate broker or a real estate salesperson, to
each real estate broker with whom the associate real estate broker or the real estate
salesperson is affiliated; and

(2)      request from each of those individuals a written response within 10 days
to the allegations set forth in the claim.

(c)      (1) The Commission:

(i) shall review the claim and any response to the claim; and

(ii) may conduct an investigation of the claim.

(2) On the basis of its review and any investigation that the Commission
conducts, it shall:

(I)       ISSUE A PROPOSED AWARD UNDER SUBSECTION (D) OF THIS
SECTION;

[(i)] (II) set the matter for a hearing; or

[(ii)](III) if the claim is frivolous, made in bad faith, or legally
insufficient, dismiss the claim.

(D) (1)(I) IF A CLAIMANT'S TOTAL CLAIM ARISING FROM THE CONDUCT OF
ONE LICENSEE DOES NOT EXCEED $3,000, THE COMMISSION MAY ISSUE A PROPOSED
ORDER TO EITHER PAY THE CLAIM IN WHOLE OR IN PART OR TO DENY THE CLAIM.

(II)     THE COMMISSION SHALL SEND THE PROPOSED ORDER TO THE
CLAIMANT AND THE LICENSEE BY PERSONAL DELIVERY OR BY BOTH REGULAR
AND CERTIFIED MAIL, RETURN RECEIPT REQUESTED.

(III)    THE PROPOSED ORDER SHALL BE SENT TO THE LICENSEE AT
THE MOST RECENT ADDRESS ON RECORD WITH THE COMMISSION.

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