Ch. 11

1996 LAWS OF MARYLAND.

(1)     THE BOND DESCRIBED UNDER SUBSECTION (A)(2) OF THIS SECTION
SHALL BE:

(I)      IN FAVOR OF THE STATE FOR THE MEMBERS OF THE
APPLICANT THAT RESIDE IN THE STATE;

(II)     ISSUED BY A SURETY INSURER AUTHORIZED TO DO BUSINESS
IN THE STATE; AND

(III)   CONDITIONED ON THE FAITHFUL PERFORMANCE BY THE
APPLICANT OF ITS OBLIGATIONS UNDER THIS TITLE, INCLUDING PAYMENT OF ANY
FINES, FEES, OR PENALTIES IMPOSED ON IT OR RESTITUTION ORDERED UNDER THIS
TITLE.

(2)     THE TOTAL LIABILITY OF THE SURETY INSURER UNDER THE BOND
MAY NOT EXCEED THE PENAL SUM OF THE BOND.

(3)      (I) THE SURETY INSURER MAY CANCEL THE BOND AFTER
NOTIFYING THE COMMISSIONER AT LEAST 30 DAYS BEFORE THE EFFECTIVE DATE
OF THE CANCELLATION.

(II) THE SURETY INSURER IS NOT LIABLE FOR ANY BREACH OF
CONDITION THAT OCCURS AFTER THE EFFECTIVE DATE OF THE CANCELLATION.

(4)     THE COMMISSIONER MAY ADOPT REGULATIONS THAT SPECIFY
CONDITIONS FOR SURETY BONDS REQUIRED BY THIS SECTION AND PROVIDE
METHODS FOR TERMINATION OF THE BONDS.

(C) DURATION OF SECURITY.

(1)     THE SECURITY REQUIRED BY SUBSECTION (A) OF THIS SECTION
SHALL BE MAINTAINED AS LONG AS THE LICENSEE HAS ANY OUTSTANDING
LIABILITY OR OBLIGATION IN THE STATE.

(2)      ON PROOF SATISFACTORY TO THE COMMISSIONER THAT THE
LICENSEE HAS STOPPED DOING BUSINESS AND THAT ALL OF THE LICENSEE'S
LIABILITIES AND OBLIGATIONS HAVE BEEN SATISFIED, THE COMMISSIONER SHALL
AUTHORIZE THE TREASURER TO RETURN THE SECURITY TO THE LICENSEE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48B, § 3(b)(5) and (6).

In subsection (b)(1)(ii) of this section, the reference to a "surety insurer" is
substituted for the former reference to a "surety company" for consistency
with terminology used throughout this article. Similarly, in subsection (b)(2)
and (3)(i) of this section, the references to a surety "insurer" are added for
clarity and consistency.

In subsection (b)(4) of this section, the former reference to "rules" is deleted.
See the General Revisor's Note to this article.

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