PARRIS N. GLENDENING, Governor                             Ch. 635

(I)     A BLANKET FIDELITY BOND COVERING APPROPRIATE
EMPLOYEES; AND

(II)     1. A SURETY BOND; OR
2. A LETTER OF CREDIT.

(2)     Unless the Commissioner approves a lesser amount, [the] EACH bond
or letter of credit shall be for $100,000.

(3)     The Commissioner [shall] MAY 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)](F) (1) The SURETY bond or letter of credit shall be for the benefit of any
person that suffers a loss if the title insurance agent OR TITLE INSURANCE BROKER
converts or misappropriates money received or held in escrow or trust while:

(i) acting as a title insurance agent OR TITLE INSURANCE BROKER;
or

(ii) providing any escrow, closing, or settlement services.

(2) THE FIDELITY BOND SHALL BE FOR THE BENEFIT OF THE
EMPLOYER OF THE TITLE INSURANCE AGENT OR TITLE INSURANCE BROKER WHO
SUFFERS ANY LOSS AS DESCRIBED IN PARAGRAPH (1) OF THIS SUBSECTION.

[(2)](3) The total liability of the surety insurer under [the] EACH bond or
letter of credit may not exceed $100,000.

[(e)](G) The title insurance agent OR TITLE INSURANCE BROKER shall file the
bond or letter of credit with the Commissioner:

(1)     after the Commissioner notifies the title insurance agent OR TITLE
INSURANCE BROKER of the approval of the application for a certificate of qualification;
and

(2)     before the Commissioner issues the certificate of qualification.

[(f)](H) (1) [The] EACH bond or letter of credit shall remain in force until:

(i) the surety insurer is released from liability by the Commissioner;
or

(ii) the bond or letter of credit is canceled by the surety insurer.

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