Ch. 36                                      1995 LAWS OF MARYLAND

(1)     WHEN THE AMOUNT OF A SURETYSHIP OBLIGATION EXCEEDS THE
ACTUAL AMOUNT OF THE JUDGMENT THAT IS BEING APPEALED AND THAT IS
SECURED BY A BOND, OR EXCEEDS THE AMOUNT OF THE SUBJECT MATTER IN
CONTROVERSY, OR EXCEEDS THE AMOUNT OF THE ESTATE HELD BY THE
FIDUCIARY FOR THE PERFORMANCE OF WHOSE DUTIES A BOND IS CONDITIONED,
THE ACTUAL AMOUNT OF THE JUDGMENT, THE SUBJECT MATTER IN
CONTROVERSY, OR THE ESTATE NOT SUBJECT TO THE SUPERVISION OR CONTROL
OF THE SURETY INSURER SHALL BE USED AS THE BASIS FOR DETERMINING
WHETHER THE RISK EXCEEDS THE 10% LIMIT ESTABLISHED BY § 5-1003(A)(1) OF THIS
SUBTITLE; AND

(2)     WHEN THE AMOUNT OF A SURETYSHIP OBLIGATION REQUIRED FOR
THE PERFORMANCE OF A CONTRACT EXCEEDS THE CONTRACT PRICE, THE
CONTRACT PRICE SHALL BE USED AS THE BASIS FOR DETERMINING WHETHER THE
RISK EXCEEDS THE 10% LIMIT ESTABLISHED BY § 5-1003(A)(1) OF THIS SUBTITLE.

(D) LIMITATION ON SURETYSHIP OBLIGATIONS THAT GUARANTY DEPOSITS.

IN ADDITION TO ANY OTHER LIMITATION CONTAINED IN THIS ARTICLE, A
SURETY INSURER MAY NOT BE EXPOSED AT ANY ONE TIME TO RISKS ON
SURETYSHIP OBLIGATIONS THAT GUARANTY THE DEPOSITS OF A SINGLE
FINANCIAL INSTITUTION IN AN AGGREGATE NET AMOUNT EXCEEDING 10% OF THE
SURETY INSURER'S SURPLUS TO POLICYHOLDERS, DETERMINED UNDER §
5-1003(A)(2) OF THIS SUBTITLE, UNLESS THE SURETY INSURER IS PROTECTED IN
EXCESS OF THAT AMOUNT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 72(7).

In subsection (a) of this section, the former introductory language,
"[n]otwithstanding the limitation prescribed in subsection (1)", is deleted as
unnecessary in light of the limitation contained in § 5-1003(a)(l) of this
subtitle.

Also in subsection (a) of this section, the former reference to "bonds of the
kind commonly known as" transportation or warehousing bonds is deleted in
light of the specific reference to "transportation or warehousing bonds".

In the introductory language of subsection (b) of this section, the reference to
the 10% limit "established by § 5-1003(a)(l) of this subtitle" is added for
clarity.

Also in the introductory language of subsection (b) of this section, the former
phrase, "[i]n applying the limitation of subsection (1) of this section to surety
risks", is deleted as unnecessary in light of the limitation contained in §
5-1003(a)(l) of this subtitle.

In subsection (b)(5) of this section, the former reference to a "future" sale,
mortgage, or other disposition is deleted as implicit.

Also in subsection (b)(5) of this section, the former reference to a mortgage
"pledge" is deleted as included in the word "mortgage".

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