Ch. 613

1997 LAWS OF MARYLAND

(i) The plaintiff, who may be the Commissioner, in a suit, action, or
proceeding instituted by him, immediately sends notice of the service and a copy of the
process by certified mail, return receipt requested, bearing a postmark from the United
States Postal Service, to the defendant or respondent at [his] THE DEFENDANT'S OR
RESPONDENTS last address on file with the Commissioner; and

(ii) The plaintiff's affidavit of compliance with this section is filed in
the case on or before the return day of the process, if any, or within any further time the
court allows.

SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article - Corporations and Associations

11-101.

(E) "FEDERAL COVERED ADVISER" MEANS A PERSON WHO IS:

(1) REGISTERED UNDER SECTION 203 OF THE INVESTMENT ADVISERS
ACT OF 1940; OR

(2) EXCLUDED FROM THE DEFINITION OF "INVESTMENT ADVISER"
UNDER SECTION 202(A)(11) OF THE INVESTMENT ADVISERS ACT OF 1940.

(F) "FEDERAL COVERED SECURITY" MEANS A COVERED SECURITY UNDER
SECTION 18(B) OF THE SECURITIES ACT OF 1933.

11-405.

(b) (1) This subsection does not apply to a federal covered adviser who
conducts advisory business in accordance with § 11-401(b)(2) or (3) of this subtitle.

(2) Before acting as a federal covered adviser in this State, a person shall
pay the fee required by § 11-407 of this subtitle and shall file the following documents as
the Commissioner may require by rule or order:

(i) The documents that the person filed with the Securities and
Exchange Commission; and

(ii) A consent to service of process under § 11-802(3) of this title.

[(3) (i) If a federal covered adviser who is required to comply with
paragraph (2) of this subsection fails to pay the required fee, the Commissioner may
require the federal covered adviser to register as an investment adviser under this
subtitle.

(ii) For purposes of this paragraph, a failure to pay does not include a
nonpayment or underpayment of a fee that is promptly remedied following written
notification from the Commissioner of the nonpayment or underpayment.]

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