Section 7-304 - Issuance of license. - Maryland Statutes

§ 7-304. Issuance of license.
 

(a)  Surety bond.-  

(1) An applicant for a license shall execute a surety bond for the benefit of any member of the public who has a loss or other damage as a result of a violation of this title or the Maryland Consumer Debt Collection Act by the applicant or an agent or employee of the applicant. 

(2) The surety bond shall be: 

(i) in a form that the Board approves; 

(ii) with a surety that the Board approves; and 

(iii) in the amount of $5,000. 

(3) The total liability of a surety on a bond under this section may not exceed the amount of the bond, regardless of the number or amount of claims against the bond. 

(4) If the amount of claims against a bond exceeds the amount of the bond, the surety: 

(i) shall pay the amount of the bond to the Board for distribution to claimants; and 

(ii) then is relieved of liability under the bond. 

(b)  Issuance.- The Board shall issue a license to each applicant who meets the requirements of this subtitle. 
 

[An. Code 1957, art. 56, §§ 327, 328; 1992, ch. 4, § 2; 1996, ch. 58.]