Ch. 326                                    1996 LAWS OF MARYLAND

(3)     The surety bond shall provide that if a buyer or holder of a payment
instrument or traveler's check obtains a judgment against the licensee and the judgment
remains unsatisfied for more than 30 days after the licensee and surety are served with
notice of the entry of judgment, an action may be brought against the surety for the
amount of the judgment, but not exceeding the amount of the bond.

(4)     The liability of a surety:

(i) Is not affected by the insolvency or bankruptcy of the licensee or
by any misrepresentation, breach of warranty, failure to pay a premium, or other act or
omission of the licensee; and

(ii) Continues, if the licensee dies, dissolves, or liquidates, as to all
transactions of an agent, until the earlier of 60 days after the death, dissolution, or
liquidation or 60 days after the termination of the bond.

(5)     A licensee or surety may cancel a bond by giving the [Bank]
Commissioner notice of the cancellation by certified mail, return receipt requested,
bearing a postmark from the United States Postal Service. However, the cancellation is
not effective until 30 days after the [ Bank] Commissioner receives the notice.

(c)     (1) Permissible investments deposited under this section shall:

(i) Have a market value equal to the amount required by subsection
(d) of this section; and

(ii) Be held by the [Bank] Commissioner to secure the same
obligations as are required to be secured by a bond under subsection (b) of this section.

(2)     At any time, a licensee may exchange deposited permissible investments
for other permissible investments that meet the requirements of this subsection.

(3)     The [Bank] Commissioner may sell or transfer deposited permissible
investments and dispose of their proceeds only on the order of a court of competent
jurisdiction.

(4)     As long as a licensee is solvent, the licensee is entitled to receive any
interest or dividends earned by the deposited permissible investments.

(5)     The [Bank] Commissioner may place the deposited permissible
investments in the custody of any qualified trust company or national banking association
in this State. The licensee shall pay the compensation of this custodian.

(d)     (1) The amount of the bond to be filed with the [Bank] Commissioner or
the fair market value of the permissible investments to be deposited with the [Bank]
Commissioner shall be in an amount of not less than $100,000 plus an additional amount
of not less than $10,000 for each agent of the licensee, but in no event shall the bond or
fair market value of permissible investments exceed $350,000, as set by the [Bank]
Commissioner.

(2) In setting the amount of the bond, the [Bank] Commissioner shall
consider:

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