PARRIS N. GLENDENING, Governor

Ch. 433

(2) Each person licensed to issue or sell traveler's checks shall have at all
times permissible investments with a book or market value, whichever is greater, that at
least equals the total of the outstanding traveler's checks.

(b)     A licensee shall require each agent to:

(1)     Hold in trust from the moment of receipt the proceeds of a sale or
delivery of the licensee's payment instruments and traveler's checks. An agent may not
commingle the proceeds with his own property or funds, except to use the funds in the
ordinary course of its business for the purpose of making change and cashing instruments,
and except to remit the proceeds to the licensee in an amount equal to that due the
licensee as a result of the sale of payment instruments or traveler's checks by the agent or
subagent. If any agent of a licensee commingles any proceeds received from the sale of
the instruments issued by the licensee with any other funds or property owned or
controlled by the agent, all commingled proceeds and other property shall be impressed
with a trust in favor of such licensee in an amount equal to the amount of the proceeds
due the licensee from the sale of payment instruments and traveler's checks less the
amount due the agent from the sale.

(2)     Within 48 hours of the next regular business day after the agent receives
the money, remit the money to the licensee or the licensee's authorized representative, or
deposit the money in the licensee's account with a financial institution.

(c)     Deposit by the agent in an account with a financial institution of funds in
advance of the sale of the payment instruments, but in an amount not less than the
amount that the agent would normally receive from the sales of payment instruments,
constitutes compliance with this section.

12-416.

[A] EXCEPT AS PERMITTED BY § 17-308.1 OF THE COMMERCIAL LAW ARTICLE,
A licensee may not charge a service fee to any original buyer who redeems an unused
payment instrument or traveler's check.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1995.

Approved May 18, 1995.

CHAPTER 433
(House Bill 1063)

AN ACT concerning
St. Mary's College of Maryland - Auxiliary and Academic Facilities Bonding Authority

FOR the purpose of increasing the bonding authority for St. Mary's College of Maryland.
BY repealing and reenacting, without amendments,

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