Section 20-601 - Bond. - Maryland Statutes

§ 20-601. Bond.
 

(a)  Execution and submission.-  

(1) Subject to this section, an applicant for a license shall execute a bond that is conditioned on the faithful and honest conduct of the applicant and runs to the State for the benefit of any person injured by any wrongful act of the applicant that is willful or malicious. 

(2) The applicant shall submit the bond to the Secretary with the license application. 

(b)  Amount.-  

(1) The amount of the bond required under subsection (a) of this section shall be at least $2,500. 

(2) The total liability of the surety to all insured persons under the bond may not exceed the penal sum of the bond. 

(c)  Duty of licensee.- A licensee shall keep in effect at all times a bond that meets the requirements of this section. 

(d)  Cancellation, forfeiture, or termination.- If a licensee's bond is canceled, forfeited, or terminated by the surety, the surety immediately shall notify the Secretary. 

(e)  Failure to notify Secretary.- If a surety fails to notify the Secretary as required by this subsection, the bond shall continue in effect until the notice is given to the Secretary. 
 

[1998, ch. 331.]