Section 5-702 - Trust companies as depositories; responsibility of State. - Maryland Statutes

§ 5-702. Trust companies as depositories; responsibility of State.
 

(a)  Trust companies as depositories.-  

(1) With the consent of the Commissioner, the Treasurer may require an insurer to make deposits of cash or government securities of the kinds described in § 5-701(a) of this subtitle with a depository that the Treasurer designates to receive and hold the deposits. 

(2) The Treasurer may designate as a depository any solvent trust company or other solvent financial institution that has trust powers and is domiciled in the State. 

(3) The Treasurer may make an appropriate agreement with a depository to ensure the receipt, safekeeping, and release of the cash or government securities deposited under this section. 

(4) A deposit made under this section shall be held at the expense of the insurer. 

(b)  Responsibility of State.- The State is responsible for the safekeeping and return of all cash and government securities deposited under this section. 
 

[An. Code 1957, art. 48A, § 111; 1995, ch. 36.]