Ch. 36                                          1995 LAWS OF MARYLAND

THIS SECTION DOES NOT APPLY TO A TITLE INSURER THAT IS AN AUTHORIZED
INSURER UNDER THIS ARTICLE.

(B)     CONVERSION OR MISAPPROPRIATION OF MONEY.

A TITLE INSURANCE AGENT MAY NOT CONVERT OR MISAPPROPRIATE MONEY
RECEIVED OR HELD IN ESCROW OR TRUST WHILE:

(1)      ACTING AS A TITLE INSURANCE AGENT; OR

(2)      PROVIDING ANY ESCROW, CLOSING, OR SETTLEMENT SERVICES.

(C)     BOND OR LETTER OF CREDIT — REQUIRED.

(1)      IN ADDITION TO MEETING THE OTHER REQUIREMENTS FOR A
CERTIFICATE OF QUALIFICATION TO ACT AS AN AGENT UNDER THIS SUBTITLE, A
TITLE INSURANCE AGENT THAT HAS AN APPOINTMENT FROM A TITLE INSURER
SHALL FILE WITH THE COMMISSIONER:

(I)       A FIDELITY BOND;

(II)     A SURETY BOND; OR

(III)    A LETTER OF CREDIT.

(2)      UNLESS THE COMMISSIONER APPROVES A LESSER AMOUNT THE
BOND OR LETTER OF CREDIT SHALL BE FOR $100,000.

(3) THE COMMISSIONER SHALL ADOPT REGULATIONS THAT SPECIFY
WHEN IT IS APPROPRIATE FOR A BOND OR LETTER OF CREDIT TO BE LESS THAN
$100,000.

(4) NOTWITHSTANDING PARAGRAPH (2) OF THIS SUBSECTION, THE
COMMISSIONER MAY WAIVE THE REQUIREMENT FOR A BOND OR LETTER OF
CREDIT IF THE COMMISSIONER FINDS THAT BONDS ARE NOT GENERALLY
AVAILABLE OR REASONABLY AFFORDABLE.

(5) THE COMMISSIONER SHALL MAKE A SPECIFIC FINDING THAT
STATES THE REASON FOR ACCEPTING A BOND OR LETTER OF CREDIT FOR LESS
THAN $100,000.

(D)     SAME — PERSONS BENEFITED; LIABILITY.

(1)      THE BOND OR LETTER OF CREDIT SHALL BE FOR THE BENEFIT OF
ANY PERSON THAT SUFFERS A LOSS IF THE TITLE INSURANCE AGENT CONVERTS OR
MISAPPROPRIATES MONEY RECEIVED OR HELD IN ESCROW OR TRUST WHILE:

(I)       ACTING AS A TITLE INSURANCE AGENT; OR

(II)     PROVIDING ANY ESCROW, CLOSING, OR SETTLEMENT
SERVICES.

(2)      THE TOTAL LIABILITY OF THE SURETY INSURER UNDER THE BOND
OR LETTER OF CREDIT MAY NOT EXCEED $100,000.

- 1234 -