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Ch. 539
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2002 LAWS OF MARYLAND
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[(a)] (B) With the application for a new or renewal license, the applicant
[either] shall file EVIDENCE OF a surety [bond or bond renewal certificate or shall
deposit permissible investments] DEVICE with the Commissioner as provided in this
section.
[(b)] (C) (1) A surety bond [filed] PURCHASED TO SATISFY THE
PROVISIONS OF SUBSECTION (B) OF [under] this section shall run to this State for
the benefit of any [person who has a cause of action against the applicant for any
liability incurred on any money transmitted by the applicant or by any agent of the
applicant] INDIVIDUAL WHO HAS BEEN DAMAGED BY A VIOLATION OF STATE LAW
OR REGULATION GOVERNING THE BUSINESS OF MONEY TRANSMISSION COMMITTED
BY A LICENSEE OR AN AUTHORIZED DELEGATE OF A LICENSEE.
(2) The surety bond shall be:
(i) In the amount required [by] UNDER subsection [(d)] (E) of this
section; and
(ii) Issued by a bonding, SURETY, [company] or insurance company
that is authorized to do business in this State.
(3) [The surety bond shall provide that if a buyer or holder of a payment
instrument or person for whom or to whom money is transmitted 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.] THE SURETY BOND SHALL BE CONDITIONED SO
THAT THE LICENSEE AND ANY AUTHORIZED DELEGATE OF THE LICENSEE SHALL
COMPLY WITH ALL STATE AND FEDERAL LAWS AND REGULATIONS GOVERNING THE
BUSINESS OF MONEY TRANSMISSION AND SHALL FULFILL ALL OBLIGATIONS TO ALL
PARTIES TO A MONEY TRANSMISSION.
(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 as to all transactions of the licensee or an [agent]
AUTHORIZED DELEGATE, for no longer than 5 years after the licensee ceases, for any
reason, to be licensed. However, the Commissioner may permit the surety bond to be
reduced or eliminated prior to that time if the amount of the licensee's payment
instruments outstanding in this State are reduced.
(5) A licensee or surety may cancel a SURETY bond by giving the
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] 90 days after the Commissioner receives the notice.
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[(c)] (D) (1) [Permissible investments deposited under] A DEPOSIT IN LIEU
OF A SURETY BOND MADE TO SATISFY THE PROVISIONS OF SUBSECTION (B) OF this
section shall:
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- 4072 -
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