PARRIS N. GLENDENING, Governor

Ch. 11

Throughout this title, references to "drive", "driver", and variations on those terms
are substituted for the former references to "operate", "operator", and their variations to
conform to the terminology used in the Maryland Vehicle Law. See TR §§ 11-114,
11-116, and 11-142.

TITLE 21. SURETY INSURANCE.
21-101. AUTHORITY OF SURETY INSURERS TO EXECUTE BONDS.

(A)     IN GENERAL.

A SURETY INSURER QUALIFIED TO ACT AS SURETY OR GUARANTOR UNDER
THIS ARTICLE MAY EXECUTE:

(1)      A BOND, UNDERTAKING, RECOGNIZANCE, OR OTHER OBLIGATION
THAT IS REQUIRED OR ALLOWED TO BE MADE, GIVEN, TENDERED, OR FILED WITH
A SURETY BY LAW OR IN THE CHARTER, ORDINANCES, RULES, OR REGULATIONS OF
A MUNICIPAL CORPORATION, BOARD, BODY, ORGANIZATION, COURT, JUDGE, OR
PUBLIC OFFICER; AND

(2)      A GUARANTY OF THE PERFORMANCE OF AN ACT, DUTY, OR
OBLIGATION, OR THE REFRAINING FROM AN ACT, THAT IS REQUIRED OR ALLOWED
TO BE GUARANTEED.

(B)     EFFECT OF EXECUTION.

THE EXECUTION BY A QUALIFIED SURETY INSURER OF A BOND,
UNDERTAKING, RECOGNIZANCE, OBLIGATION, OR GUARANTY IS IN FULL
COMPLIANCE WITH EACH REQUIREMENT OF EACH LAW, CHARTER, ORDINANCE,
RULE, OR REGULATION THAT:

(1)      THE BOND, UNDERTAKING, RECOGNIZANCE, OBLIGATION, OR
GUARANTY SHALL BE EXECUTED BY A SURETY; OR

(2)      THE SURETY SHALL BE A RESIDENT, HOUSEHOLDER, OR
FREEHOLDER, OR EITHER OR BOTH, OR SHALL HAVE ANY OTHER QUALIFICATIONS.

(C)     ACCEPTANCE OF BOND.

EACH COURT, JUDGE, DEPARTMENT HEAD, BOARD, BODY, MUNICIPAL
CORPORATION, AND PUBLIC OFFICER SHALL ACCEPT A BOND, UNDERTAKING,
RECOGNIZANCE, OBLIGATION, OR GUARANTY EXECUTED BY A QUALIFIED SURETY
INSURER AND TREAT IT AS CONFORMING TO AND FULLY COMPLYING WITH EACH
REQUIREMENT OF EACH APPLICABLE LAW, CHARTER, ORDINANCE, RULE, OR
REGULATION.

(D)     RELEASE FROM LIABILITY ON BOND.

A SURETY INSURER MAY BE RELEASED FROM ITS LIABILITY ON A BOND,
UNDERTAKING, RECOGNIZANCE, OBLIGATION, OR GUARANTY EXECUTED UNDER
SUBSECTION (A) OF THIS SECTION ON THE SAME TERMS AND CONDITIONS
PROVIDED BY LAW FOR THE RELEASE OF AN INDIVIDUAL SURETY.

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