Sec. 5-206. License; bond required

As a condition precedent to the issuance of a license under this Division, every person required to be licensed under this Division shall deliver to the Director a receipt for a cash bond received from the County Director of Finance or a corporate bond executed by a surety company qualified to do business in the State of Maryland in the amount of Two Thousand Dollars ($2,000.00) or Five Thousand Dollars ($5,000) if the licensee is engaged in a high-risk industry.

In lieu of the individual bond specified in subsection (a), above, the Director may accept a bond filed by a person, partnership, or corporation which shall cover one (1) or more employees or agents of such person, partnership, or corporation soliciting in the County, and which fulfills the requirements of Subsection (a), above.

That cash or corporate bond shall run to the County and shall be conditioned that the licensee shall:

Any person who has been awarded a final judgment from any court of competent jurisdiction as a result of services rendered by a person required to be licensed under this Division shall have a right of action against such bond for the recovery of money, damages, or both, in any court of competent jurisdiction. In the event that the judgment is not satisfied after the judgment holder has made reasonable efforts to execute on the judgment, the County, on behalf of the judgment holder, may make demand on the surety company for the maximum amount of the bond or the amount of the judgment obtained plus interest and costs, whichever is less.

Cash bonds shall be deposited with the County Director of Finance and he shall issue duplicate receipts therefor. Such cash bonds shall be maintained by the County Director of Finance in a special interest bearing account for three (3) years after the date of expiration of the license or the date of the expiration of any renewal period for which such bond was deposited by the licensee. If the County Director of Finance is notified in writing that a suit has been filed against any such licensee as a result of which a judgment may be payable out of such cash bond, the County Director of Finance shall retain such cash bond until such time as such suit has been reduced to judgment and the period for filing an appeal from such judgment has expired or the judgment debtor has waived in writing his right to take an appeal or until such time as such suit has otherwise been disposed of.

Every person required to be licensed under this Division who has deposited a cash bond with the County Director of Finance shall be entitled to a return of reasonable interest earned on such cash bond by the County in an amount not to exceed four percent (4%) simple interest per annum.

The failure of any person licensed under the provisions of this Division to maintain at all times the cash or corporate bond in the amount required by this Section shall constitute grounds for revocation of such person's license by the Director in accordance with the procedures set forth in Section 5-207.01 of this Division. In the case of both cash and corporate bonds, a total amount of not less than Two Thousand Dollars ($2,000.00) for the aggregate of all claims shall be sufficient to satisfy the bonding requirements of this Section, except that any person engaged in a high-risk industry shall maintain a total amount of not less than Five Thousand Dollars ($5,000) for the aggregate of all claims.