Ch. 369

2004 LAWS OF MARYLAND

CHAPTER 369
(House Bill 723)

AN ACT concerning

Real Property - Residential Lease Leases - Security Deposits - Interest

Rates

FOR the purpose of altering the annual interest accrual rate paid on a security
deposit under a residential lease security deposit within a certain number of
days after the end of a tenancy; altering the annual interest rate paid on a
security deposit under a residential lease prior to the termination of a tenancy
under certain circumstances; and generally relating to interest rates paid on
security deposits under residential lease leases security deposits.

BY repealing and reenacting, with amendments,
Article - Real Property
Section 8-203(e) and (h)
Annotated Code of Maryland
(2003 Replacement Volume and 2003 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Real Property

8-203.

(e) (1) Within 45 days after the end of the tenancy, the landlord shall return
the security deposit to the tenant together with simple interest which has accrued in
the amount of [4] 2 3 percent per annum, less any damages rightfully withheld.

(2)     Interest shall accrue at six-month intervals from the day the tenant
gives the landlord the security deposit. Interest is not compounded.

(3)     Interest shall be payable only on security deposits of $50 or more.

(4)     If the landlord, without a reasonable basis, fails to return any part of
the security deposit, plus accrued interest, within 45 days after the termination of the
tenancy, the tenant has an action of up to threefold of the withheld amount, plus
reasonable attorney's fees.

(h) (1) The provisions of subsections (e)(1) and (4) and (g)(1) and (2) of this
section are inapplicable to a tenant who has been evicted or ejected for breach of a
condition or covenant of a lease prior to the termination of the tenancy or who has
abandoned the premises prior to the termination of the tenancy.

(2) (i) A tenant specified in paragraph (1) of this subsection may
demand return of the security deposit by giving written notice by first-class mail to
the landlord within 45 days of being evicted or ejected or of abandoning the premises.

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