Ch. 374

2003 LAWS OF MARYLAND

(III) CONDITIONED SO THAT THE LICENSEE AND ITS AGENT SHALL
COMPLY WITH ALL STATE AND FEDERAL LAWS AND REGULATIONS GOVERNING THE
BUSINESS OF PROVIDING DEBT MANAGEMENT SERVICES.

(4) (3) THE LIABILITY OF A SURETY:

(I)      IS NOT AFFECTED BY THE INSOLVENCY OR BANKRUPTCY OF
THE LICENSEE OR ITS AGENT OR BY ANY MISREPRESENTATION, BREACH OF
WARRANTY, FAILURE TO PAY A PREMIUM, OR OTHER ACT OR OMISSION OF THE
LICENSEE OR ITS AGENT; AND

(II)     CONTINUES AS TO ALL TRANSACTIONS OF THE LICENSEE, AND
TRANSACTIONS OF ITS AGENT ON BEHALF OF THE LICENSEE, FOR NO LONGER THAN
2 YEARS AFTER THE LICENSEE CEASES, FOR ANY REASON, TO BE LICENSED.

(5) (4) THE COMMISSIONER MAY ALLOW THE AMOUNT OF THE
SURETY BOND TO BE REDUCED IF THE AMOUNT OF THE LICENSEE'S OUTSTANDING
DEBT MANAGEMENT SERVICES LIABILITIES IN THE STATE IS REDUCED.

(6) (5) IN SETTING THE AMOUNT OF THE SURETY BOND, THE
COMMISSIONER SHALL CONSIDER:

(I)      THE FINANCIAL CONDITION AND BUSINESS EXPERIENCE OF
THE APPLICANT OR LICENSEE AND THE AGENT OF THE APPLICANT OR LICENSEE:

(II)     FOR AN APPLICANT, THE PROJECTED MONTHLY AND ANNUAL.
VOLUME OF DEBT MANAGEMENT SERVICES TO BE PROVIDED IN THE STATE;

(III)    FOR A LICENSEE, THE AVERAGE MONTHLY AND ANNUAL
VOLUME OF DEBT MANAGEMENT SERVICES PROVIDED IN THE STATE DURING THE
PREVIOUS 12-MONTH PERIOD;

(IV)    THE POTENTIAL LOSS TO CONSUMERS WHO REMIT FUNDS TO
THE APPLICANT OR LICENSEE IF THE APPLICANT OR LICENSEE BECOMES
FINANCIALLY IMPAIRED; AND

(V)     ANY OTHER FACTOR THE COMMISSIONER CONSIDERS
APPROPRIATE.

(C)     IF THE PRINCIPAL AMOUNT OF A SURETY BOND IS REDUCED BY PAYMENT
OF A CLAIM OR JUDGMENT, THE LICENSEE SHALL FILE WITH THE COMMISSIONER
ANY NEW OR ADDITIONAL SURETY BOND IN THE AMOUNT THAT THE COMMISSIONER
SETS.

(D)     THE COMMISSIONER MAY WAIVE THE SURETY BOND REQUIREMENT
UNDER THIS SECTION IF THE COMMISSIONER DETERMINES THAT THE VOLUME OF
DEBT MANAGEMENT SERVICES PROVIDED BY THE APPLICANT OR LICENSEE DOES
NOT WARRANT THE NEED FOR A SURETY BOND.

(E)     A PENALTY IMPOSED UNDER § 12-928 OR § 12-929 OF THIS SUBTITLE MAY
BE PAID AND COLLECTED FROM THE PROCEEDS OF A SURETY BOND REQUIRED
UNDER THIS SECTION.

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