<section article="gfi" article_name="Financial Institutions" number="12-101" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Control person” means a person who has the power, directly or indirectly, to direct the management or policies of a licensee or license applicant, whether through ownership of securities, by contract, or otherwise.</text> </level> <level label="2"> <text>“Control person” includes a person who:</text> <level label="i"> <text>Is a general partner, an officer, a director, or a member, or occupies a similar position or performs a similar function;</text> </level> <level label="ii"> <text>Directly or indirectly has the right to vote 5% or more of a class of voting securities, or has the power to sell or direct the sale of 5% or more of a class of voting securities, of a licensee or license applicant; or</text> </level> <level label="iii"> <text>In the case of a partnership, a limited partnership, a limited liability partnership, a limited liability company, or any other business entity:</text> <level label="1"> <text>Has the right to receive on liquidation or dissolution of a licensee or license applicant 5% or more of the capital of the licensee or license applicant; or</text> </level> <level label="2"> <text>Has contributed 5% or more of the capital of a licensee or license applicant.</text> </level> </level> </level> </level> <level label="c"> <text>“Exempt entity” means an entity that is exempt from all requirements of licensing as provided under § 12–103(b) and (c) of this subtitle.</text> </level> <level label="d"> <text>“License” means a license issued in any form by the Commissioner under this subtitle to provide check cashing services, including as provided for through NMLS.</text> </level> <level label="e"> <level label="1"> <text>“Licensed location” means any location listed by the licensee in NMLS in accordance with this subtitle.</text> </level> <level label="2"> <text>“Licensed location” includes a mobile unit.</text> </level> </level> <level label="f"> <text>“Licensed name” means:</text> <level label="1"> <text>The licensee’s legal name; and</text> </level> <level label="2"> <text>Any trade name used by the licensee in accordance with § 2–121 of this article.</text> </level> </level> <level label="g"> <text>“Licensee” means a person licensed under this subtitle to provide check cashing services.</text> </level> <level label="h"> <text>“Mobile unit” means a motor vehicle or other movable means from which check cashing services are provided.</text> </level> <level label="i"> <level label="1"> <text>“Payment instrument” means a check or a draft ordering a person to pay money.</text> </level> <level label="2"> <text>“Payment instrument” includes a money order.</text> </level> </level> <level label="j"> <text>“Provide check cashing services” means to accept or cash, for compensation, a payment instrument regardless of the date of the payment instrument.</text> </level> <level label="k"> <text>“Unique identifier” means a number or another identifier assigned by NMLS.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-102" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>This subtitle does not apply to check cashing services:</text> <level label="1"> <text>In which a customer presents a payment instrument for the exact amount of a purchase; or</text> </level> <level label="2"> <text>Involving foreign currency exchange services or the cashing of a payment instrument drawn on a financial institution other than a federal, State, or other state financial institution.</text> </level> </level> <level label="b"> <level label="1"> <text>This subtitle does not apply to a transaction that is subject to the Maryland Consumer Loan Law (Title 12, Subtitle 3 of the Commercial Law Article and Title 11, Subtitle 2 of this article), including a transaction in which an additional fee is charged to defer the presentment or deposit of a payment instrument until a subsequent date.</text> </level> <level label="2"> <text>A check cashing service is not subject to the Maryland Consumer Loan Law if:</text> <level label="i"> <text>The fee charged for the check cashing service does not exceed the fee permitted under this subtitle;</text> </level> <level label="ii"> <text>No additional fee is charged to defer the presentment or deposit of the payment instrument; and</text> </level> <level label="iii"> <text>The check cashing service is not subject to renewal or extension by any means.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-103" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>This subtitle does not apply to:</text> <level label="1"> <text>Any bank, trust company, savings bank, savings and loan association, or credit union incorporated or chartered under the laws of this State or the United States that maintains its principal office in this State;</text> </level> <level label="2"> <text>Any out-of-state bank, as defined in § 5-1001 of this article, having a branch that accepts deposits in this State; and</text> </level> <level label="3"> <text>Any institution incorporated under federal law as a savings association or savings bank that does not maintain its principal office in this State but has a branch that accepts deposits in this State.</text> </level> </level> <level label="b"> <text>A subsidiary or affiliate of an institution described in subsection (a) of this section is exempt from all requirements of licensing under this subtitle provided the subsidiary or affiliate:</text> <level label="1"> <text>Is subject to audit or examination by a regulatory body or agency of this State, the United States, or the state where the subsidiary or affiliate maintains its principal office; and</text> </level> <level label="2"> <text>Submits to the Commissioner in writing and prior to providing check cashing services the following information:</text> <level label="i"> <text>The subsidiary’s or affiliate’s name and address, and the names and addresses of each:</text> <level label="1"> <text>Owner who owns 5% or more of the subsidiary or affiliate; and</text> </level> <level label="2"> <text>Officer, director, or principal of the subsidiary or affiliate;</text> </level> </level> <level label="ii"> <level label="1"> <text>Each address at which check cashing services will be provided; and</text> </level> <level label="2"> <text>If a mobile unit will be used to provide check cashing services, the vehicle identification number of the mobile unit and the geographic area in which the mobile unit will be operating; and</text> </level> </level> <level label="iii"> <text>Any other information that the Commissioner requests.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>An exempt entity is not subject to the provisions of §§ 12-106 through 12-112, inclusive, and § 12-122 of this subtitle.</text> </level> <level label="2"> <text>An exempt entity is subject to:</text> <level label="i"> <text>The provisions of §§ 12-113 through 12-121, inclusive, and §§ 12-123 through 12-127, inclusive, of this subtitle; and</text> </level> <level label="ii"> <text>Any regulation, except to the extent the regulation concerns licensing, adopted under this subtitle.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-104" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <text>The Commissioner may adopt regulations to carry out the provisions of this subtitle.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-104.1" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>All revenue received for the licensing and assessment of persons under this subtitle and any other fee or revenue received by the Commissioner under this subtitle shall be:</text> <level label="1"> <text>Credited to the Non–Depository Special Fund established under § 2–120 of this article; and</text> </level> <level label="2"> <text>Used in accordance with § 2–120(d) of this article.</text> </level> </level> <level label="b"> <text>Notwithstanding subsection (a) of this section, the Commissioner shall pay all fines and penalties collected by the Commissioner under this subtitle into the General Fund of the State.</text> </level> <level label="c"> <text>Subject to § 2–120(h) of this article, the Commissioner may impose an annual assessment on any licensee under this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-105" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>Except as provided in § 12–102(a) or § 12–105.1 of this subtitle, a person may not provide check cashing services unless the person is licensed under this subtitle or is an exempt entity.</text> </level> <level label="b"> <text>A licensee may provide check cashing services only at a licensed location or as otherwise authorized by the Commissioner through regulation.</text> </level> <level label="c"> <text>During the time period established by the Commissioner under subsection (d) of this section, each licensee shall:</text> <level label="1"> <text>Obtain and maintain a valid unique identifier issued by NMLS when an account is created with NMLS;</text> </level> <level label="2"> <text>Transfer licensing information to NMLS; and</text> </level> <level label="3"> <text>Pay to the Commissioner a license extension fee calculated in accordance with subsection (d)(5) of this section.</text> </level> </level> <level label="d"> <level label="1"> <text>The Commissioner shall establish a time period that is no less than 2 months within which a licensee must transfer licensing information to NMLS.</text> </level> <level label="2"> <text>The time period that the Commissioner establishes under this subsection shall begin on or after July 1, 2017.</text> </level> <level label="3"> <text>At least 30 days before the transfer period begins, the Commissioner shall:</text> <level label="i"> <text>Notify all licensees of the transfer period; and</text> </level> <level label="ii"> <text>Provide instructions for the transfer of licensing information to NMLS.</text> </level> </level> <level label="4"> <text>For each licensee that complies with subsection (c) of this section, the term of the licensee’s license shall extend to December 31 of the year in which the license otherwise would have expired.</text> </level> <level label="5"> <text>The license extension fee required under subsection (c)(3) of this section is nonrefundable and, based on the annual license fee, shall be prorated to the number of days between the date the license otherwise would have expired and December 31 of the same year.</text> </level> </level> <level label="e"> <text>Subject to subsection (c) of this section, an applicant for an initial license or a license renewal shall apply for the initial license or license renewal through NMLS:</text> <level label="1"> <text>On or after July 1, 2017; or</text> </level> <level label="2"> <text>If the Commissioner has not joined NMLS with respect to persons required to be licensed under this subtitle as of July 1, 2017, on or after the date that the Commissioner joins, as specified by the Commissioner by public notice.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-105.1" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>A person may provide check cashing services without obtaining a license under this subtitle by registering each year with the Commissioner under this section if the person:</text> <level label="1"> <text>Charges a fee of up to 1.5% or $1, whichever is greater, of the face amount of the payment instrument per payment instrument;</text> </level> <level label="2"> <text>Provides check cashing services that are incidental to the retail sale of goods or services by the person that is providing the check cashing services;</text> </level> <level label="3"> <text>Is registered as a check casher money service business with the U.S. Department of Treasury;</text> </level> <level label="4"> <text>Conducts check cashing service transactions within the interior of the business location and not through the use of a mobile unit or an exterior drive–up or walk–up window;</text> </level> <level label="5"> <text>Has conspicuously posted a notice with the following information, in 48 point type or larger, at each business location at which the person provides check cashing services:</text> <level label="i"> <text>The fees charged for check cashing services; and</text> </level> <level label="ii"> <text>How to contact the Office of Financial Regulation with comments or complaints; and</text> </level> </level> <level label="6"> <text>Provides a receipt to each check cashing services customer that includes:</text> <level label="i"> <text>The date of the transaction;</text> </level> <level label="ii"> <text>The face value of the check cashed;</text> </level> <level label="iii"> <text>The fee charged; and</text> </level> <level label="iv"> <text>The net dollar amount paid to the customer.</text> </level> </level> </level> <level label="b"> <text>To register as a check cashing service, a person shall:</text> <level label="1"> <text>Obtain and maintain a valid unique identifier issued by NMLS when an account is created with NMLS; and</text> </level> </level> <level label="2"> <text>Provide information required by the Commissioner through NMLS, including:</text> <level label="i"> <text>The person’s name and address and, if the person is not an individual:</text> <level label="1"> <text>The names and addresses of each owner who owns more than 5% of the person; and</text> </level> <level label="2"> <text>The officers and director or principal of the person;</text> </level> </level> <level label="ii"> <text>The addresses at which check cashing services will be provided; and</text> </level> <level label="iii"> <text>Any other information determined to be necessary by the Commissioner.</text> </level> </level> <level label="c"> <text>A person submitting an initial registration or a registration renewal under this section shall apply through NMLS:</text> <level label="1"> <text>For the initial registration, on or after November 1, 2020; and</text> </level> <level label="2"> <text>For registration renewal, each year thereafter.</text> </level> </level> <level label="d"> <text>A person submitting an initial registration or a registration renewal under this section shall pay to NMLS any fees that NMLS imposes in connection with the issuance of the registration or the renewal of the registration.</text> </level> <level label="e"> <text>Sections 12–106 through 12–120 of this subtitle do not apply to a person who registers under this section.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-106" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <text>To qualify for a license, an applicant shall satisfy the Commissioner that:</text> <level label="1"> <text>The applicant’s business will promote the convenience and advantage of the communities where the applicant will operate a licensed location offering check cashing services; and</text> </level> <level label="2"> <text>The applicant or, if the applicant is not an individual, each of the owners, officers, directors, or principals of the entity:</text> <level label="i"> <text>Has sufficient experience, character, financial responsibility, and general fitness to:</text> <level label="1"> <text>Command the confidence of the public; and</text> </level> <level label="2"> <text>Warrant the belief that the business will be operated lawfully, honestly, fairly, and efficiently; and</text> </level> </level> <level label="ii"> <text>Has not committed any act that would be a ground for suspension or revocation of a license under this subtitle.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-107" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>In connection with an initial application for a license under this subtitle, and at any other time the Commissioner requires, an applicant or licensee shall provide fingerprints, as directed by the Commissioner, to NMLS for use by the Federal Bureau of Investigation to conduct a criminal history records check.</text> </level> <level label="b"> <text>An applicant or licensee required under this section to provide fingerprints shall pay any processing or other required fee.</text> </level> <level label="c"> <text>If the applicant or licensee is a corporation, the fingerprinting and criminal history records check requirements shall apply to the president, and any other officer, director, principal, or owner of the corporation as required by the Commissioner.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-107.1" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <level label="1"> <text>The requirements under any federal law and Title 4, Subtitles 1 through 5 of the General Provisions Article regarding the privacy or confidentiality of information or material provided to NMLS, and any privilege arising under federal or state law, including the rules of any federal or state court with respect to that information or material, shall continue to apply to that information or material after the information or material has been disclosed to NMLS.</text> </level> <level label="2"> <text>The information and material may be shared with all state and federal regulatory officials having oversight authority over persons required to be licensed under this subtitle, including the Financial Crimes Enforcement Network and the Office of Foreign Assets Control, and any successor to these agencies, without the loss of privilege or the loss of confidentiality protections provided by federal law or Title 4, Subtitles 1 through 5 of the General Provisions Article.</text> </level> </level> <level label="b"> <text>Information or material that is subject to a privilege or confidentiality under subsection (a) of this section may not be subject to:</text> <level label="1"> <text>Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or agency of the federal government or a state that has received the information or material; or</text> </level> <level label="2"> <text>Subpoena, discovery, or admission into evidence, in any private civil litigation or administrative process, unless, with respect to any privilege held by NMLS, the person to whom the information or material pertains waives, in whole or in part, that privilege.</text> </level> </level> <level label="c"> <text>Any provisions of Title 4, Subtitles 1 through 5 of the General Provisions Article relating to the disclosure of any information or material described in subsection (a) of this section that are inconsistent with subsection (a) of this section shall be superseded by the requirements of this section.</text> </level> <level label="d"> <text>This section does not apply to information or material relating to publicly adjudicated disciplinary and enforcement actions against a person required to be licensed under this subtitle that is included in NMLS and designated for access by the public.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-108" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <level label="1"> <text>To apply for a license, an applicant shall:</text> <level label="i"> <text>Complete, sign, and submit to the Commissioner an application made under oath in the form, and in accordance with the process, that the Commissioner requires; and</text> </level> <level label="ii"> <text>Provide all the information that the Commissioner requests.</text> </level> </level> <level label="2"> <text>The application shall include:</text> <level label="i"> <text>The applicant’s legal name and any trade name used by the applicant in accordance with § 2–121 of this article;</text> </level> <level label="ii"> <text>The applicant’s principal executive office address;</text> </level> <level label="iii"> <text>If the applicant is not an individual, the name and residence address of each control person;</text> </level> <level label="iv"> <text>The address of each additional location, if any, that:</text> <level label="1"> <text>The general public may reasonably view as a location that provides check cashing services, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;</text> </level> <level label="2"> <text>Houses any core operational infrastructure or technology systems;</text> </level> <level label="3"> <text>Conducts any core management, information security and technology, risk and compliance, or finance functions; or</text> </level> <level label="4"> <text>Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle;</text> </level> </level> <level label="v"> <text>If the licensee operates a mobile unit, the vehicle identification number of each mobile unit and the geographic area where each mobile unit will be operating; and</text> </level> <level label="vi"> <text>Any other information that the Commissioner requires for an investigation and findings under § 12–109 of this subtitle.</text> </level> </level> </level> <level label="b"> <text>With the application, the applicant shall pay to the Commissioner:</text> <level label="1"> <text>An investigation fee of $100; and</text> </level> <level label="2"> <text>A license fee of $500.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-109" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>When an applicant for a license files the application and pays the fees required by § 12–108 of this subtitle, the Commissioner shall investigate the facts relevant to the application to determine if the applicant meets the requirements of this subtitle.</text> </level> <level label="b"> <text>Unless the Commissioner and an applicant agree in writing to extend the time, the Commissioner shall approve or deny each application for a license within 60 days after the date on which the complete application is filed and the fees are paid.</text> </level> <level label="c"> <text>The Commissioner shall issue a license to any applicant who meets the requirements of this subtitle.</text> </level> <level label="d"> <level label="1"> <text>If an applicant does not meet the requirements of this subtitle, the Commissioner shall:</text> <level label="i"> <text>Deny the application;</text> </level> <level label="ii"> <text>Notify the applicant immediately of the denial;</text> </level> <level label="iii"> <text>Refund the license fee; and</text> </level> <level label="iv"> <text>Retain the investigation fee.</text> </level> </level> <level label="2"> <level label="i"> <text>Within 10 days after the Commissioner denies an application, the Commissioner shall send a written notice to the applicant stating the reasons for the denial.</text> </level> <level label="ii"> <text>The notice shall be sent by United States mail, e–mail, or any means provided through NMLS to the address listed in the application.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-110" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>Information in NMLS associated with a license approved by the Commissioner under this subtitle shall include the following:</text> <level label="1"> <text>The licensee’s legal name and any trade name used by the licensee in accordance with § 2–121 of this article;</text> </level> <level label="2"> <text>The address of the licensee’s principal executive office;</text> </level> <level label="3"> <text>The address of each additional location, if any, where the licensee does business and that:</text> <level label="i"> <text>The general public may reasonably view as a location that offers check cashing services, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;</text> </level> <level label="ii"> <text>Houses any core operational infrastructure or technology systems;</text> </level> <level label="iii"> <text>Conducts any core management, information security and technology, risk and compliance, or finance functions; or</text> </level> <level label="iv"> <text>Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle; and</text> </level> </level> <level label="4"> <text>The information required by § 12–108(a)(2)(v) of this subtitle for each mobile unit, if any, of the licensee.</text> </level> </level> <level label="b"> <text>A licensee shall maintain and update the information in NMLS associated with the licensee’s license to reflect accurately at all times the information required by subsection (a) of this section.</text> </level> <level label="c"> <text>The unique identifier assigned by NMLS to a licensee shall constitute the licensee’s license number.</text> </level> <level label="d"> <text>A license authorizes the licensee to do business under the license at any licensed location, under any licensed name and, for each mobile unit, in the geographic area listed for the mobile unit in NMLS, or as otherwise authorized by the Commissioner through regulation.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-110.1" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>A licensee may surrender a license through NMLS in accordance with the process that the Commissioner requires.</text> </level> <level label="b"> <text>If a license is surrendered voluntarily, or is suspended or revoked, the Commissioner may not refund any part of the license fee regardless of the time remaining in the license term.</text> </level> <level label="c"> <text>The surrender of a license does not affect any civil or criminal liability of the licensee for acts committed before the license was surrendered.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-111" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>An initial license term shall:</text> <level label="1"> <text>Begin on the date the license is issued; and</text> </level> <level label="2"> <text>Expire on December 31 of the year:</text> <level label="i"> <text>In which the license is issued, if the license is issued before November 1; or</text> </level> <level label="ii"> <text>Immediately following the year in which the license is issued, if the license is issued on or after November 1.</text> </level> </level> </level> <level label="b"> <text>On or after November 1 of the year a license expires, the license may be renewed for an additional 1–year term, if the licensee:</text> <level label="1"> <text>Otherwise is entitled to be licensed;</text> </level> <level label="2"> <text>Pays to the Commissioner a renewal fee of $500; and</text> </level> <level label="3"> <text>Submits to the Commissioner a renewal application in the form, and in accordance with the process, that the Commissioner requires.</text> </level> </level> <level label="c"> <text>The Commissioner shall determine if the requirements of § 12–106 of this subtitle to qualify for a license continue to apply.</text> </level> <level label="d"> <text>To the extent required or permitted by NMLS, the Commissioner may determine that licenses issued under this subtitle shall expire on a staggered basis.</text> </level> <level label="e"> <text>A licensee may not renew a license unless, before the submission of the license renewal application, the licensee has transferred the licensee’s licensing information to NMLS in accordance with § 12–105(c) of this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-112" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>A license is not transferable.</text> </level> <level label="b"> <level label="1"> <text>Each licensee shall conspicuously post, in 48 point or larger type, at each licensed location the following information:</text> <level label="i"> <text>The licensee’s unique identifier; and</text> </level> <level label="ii"> <text>A statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee.</text> </level> </level> <level label="2"> <text>Each licensee shall conspicuously display the following information on the licensee’s website, any software application accessible to the public and used to provide check cashing services, and profile page within each social media platform the licensee uses:</text> <level label="i"> <text>The licensee’s unique identifier; and</text> </level> <level label="ii"> <text>A link to the NMLS Consumer Access website.</text> </level> </level> </level> <level label="c"> <text>A licensee is not required to post the information required in subsection (b)(1) of this section at a licensed location if the licensed location is not a mobile unit and the licensee does not regularly grant access to that licensed location to members of the general public.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-113" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>A licensee may not add, delete, or modify a location required to be listed in NMLS under § 12–110(a)(2), (3), or (4) of this subtitle unless:</text> <level label="1"> <text>The licensee provides to the Commissioner, through NMLS and in accordance with any regulations the Commissioner adopts, notice of the addition, deletion, or modification;</text> </level> <level label="2"> <text>The addition, deletion, or modification of the location is recorded with the information associated with the licensee’s license in NMLS; and</text> </level> <level label="3"> <text>The addition, deletion, or modification of the location otherwise complies with this subtitle.</text> </level> </level> <level label="b"> <text>The licensee may not do business at a location or in a geographic area required to be listed in NMLS by § 12–110(a)(2), (3), or (4) of this subtitle until the location or geographic area is recorded with the information associated with the licensee’s license in NMLS.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-114" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>A licensee shall keep the books and records that the Commissioner requires to determine compliance with this subtitle.</text> </level> <level label="b"> <text>Unless a longer period is expressly required by State or federal law, a licensee shall retain the records required under this subtitle for a period of at least 2 years.</text> </level> <level label="c"> <text>A licensee may retain the records required under this subtitle at any location, if the licensee:</text> <level label="1"> <text>Notifies the Commissioner in writing of the location of the records; and</text> </level> <level label="2"> <text>Makes the records available at the licensed location, as agreed by the Commissioner and the licensee, within 7 days after a written request for examination by the Commissioner.</text> </level> </level> <level label="d"> <text>In addition to any other books and records that the Commissioner may require, a licensee shall retain:</text> <level label="1"> <text>A chronological register of all payment instruments cashed by the licensee showing:</text> <level label="i"> <text>The name of the customer;</text> </level> <level label="ii"> <text>The transaction date;</text> </level> <level label="iii"> <text>The type and amount of payment instrument;</text> </level> <level label="iv"> <text>The amount of fee charged; and</text> </level> <level label="v"> <text>A complete description of the identification presented by the customer; and</text> </level> </level> <level label="2"> <text>The licensee’s bank statements and canceled checks.</text> </level> </level> <level label="e"> <text>A licensee shall retain the records required under this section in one of the following ways:</text> <level label="1"> <text>Original form;</text> </level> <level label="2"> <text>An electronic equivalent approved by the Commissioner; or</text> </level> <level label="3"> <text>A microphotographic copy approved by the Commissioner.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-115" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>At any time and as often as the Commissioner considers appropriate, the Commissioner may investigate the records and business operations of a licensee or a person who acts on behalf of a licensee.</text> </level> <level label="b"> <text>For the purposes of this section, the Commissioner:</text> <level label="1"> <text>Shall be given access to any books, papers, records, safes, or vaults of the person under investigation; and</text> </level> <level label="2"> <text>May examine under oath a person whose testimony the Commissioner requires.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-116" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <text>Before a licensee deposits a payment instrument in or presents a payment instrument to a financial institution, the licensee shall endorse the payment instrument with the name under which the licensee is licensed to provide check cashing services.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-117" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <text>A licensee shall comply with all federal and State laws concerning money laundering.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-118" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <text>A licensee shall conspicuously post, in 48 point or larger type, at each licensed location where the licensee provides check cashing services:</text> <level label="1"> <text>A notice of the fees for check cashing services; and</text> </level> <level label="2"> <text>The phone number of the Commissioner for customers to file complaints.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-119" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>A licensee shall pay a customer, in United States currency, the face amount of the payment instrument received less the fee charged.</text> </level> <level label="b"> <level label="1"> <text>A licensee may not provide check cashing services to a customer unless the customer presents a form of customarily acceptable identification.</text> </level> <level label="2"> <text>Acceptable forms of identification include:</text> <level label="i"> <text>A valid driver’s license with photograph issued by a state government;</text> </level> <level label="ii"> <text>A valid identity card with photograph issued by a state government;</text> </level> <level label="iii"> <text>A valid United States passport or alien registration card; and</text> </level> <level label="iv"> <text>A valid uniformed services identification card.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-120" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>Except as provided in § 15-802(b) of the Commercial Law Article and subsection (b) of this section, a licensee may not charge any other fee, including late fees or other service fees, for accepting or cashing a payment instrument in excess of the greater of:</text> <level label="1"> <text>2% of the face amount of the payment instrument or $3, if the payment instrument is issued by the federal government or a state or local government;</text> </level> <level label="2"> <text>10% of the face amount of a payment instrument or $5, if the payment instrument is a personal check; or</text> </level> <level label="3"> <text>4% of the face amount of the payment instrument or $5, for any other payment instrument.</text> </level> </level> <level label="b"> <text>A licensee may charge a customer a one-time membership fee not to exceed $5.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-121" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <text>Subject to the hearing provisions of § 12–123 of this subtitle, the Commissioner may order a licensee or registrant to cease and desist from a course of conduct if the course of conduct results in an evasion or violation of this subtitle or a regulation adopted under this subtitle.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-122" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>Subject to the hearing provisions of § 12–123 of this subtitle, the Commissioner may suspend or revoke the license of any licensee or registration of any registrant if the licensee or registrant, or any owner, director, officer, member, partner, stockholder, employee, or agent of the licensee or registrant:</text> <level label="1"> <text>Makes any material misstatement in an application for a license or registration;</text> </level> <level label="2"> <text>Is convicted under the laws of the United States or of any other state of:</text> <level label="i"> <text>A felony; or</text> </level> <level label="ii"> <text>A misdemeanor that is directly related to the fitness and qualification of the person to provide check cashing services;</text> </level> </level> <level label="3"> <text>In connection with any check cashing service:</text> <level label="i"> <text>Commits any fraud;</text> </level> <level label="ii"> <text>Engages in any illegal or dishonest activities; or</text> </level> <level label="iii"> <text>Misrepresents or fails to disclose any material facts to anyone entitled to that information;</text> </level> </level> <level label="4"> <text>Violates any provision of this subtitle or any rule or regulation adopted under this subtitle, or any other law regulating check cashing services in the State; or</text> </level> <level label="5"> <text>Otherwise demonstrates unworthiness, bad faith, dishonesty, or any other quality that indicates that the business of the licensee or registrant has not been or will not be conducted honestly, fairly, equitably, and efficiently.</text> </level> </level> <level label="b"> <text>In determining whether the license of the licensee or registration of the registrant should be suspended or revoked for a reason listed in subsection (a)(2) of this section, the Commissioner shall consider:</text> <level label="1"> <text>The nature of the crime;</text> </level> <level label="2"> <text>The relationship of the crime to the activities authorized by the license or registration;</text> </level> <level label="3"> <text>With respect to a felony, the relevance of the conviction to the fitness and qualification of the licensee or registrant to provide check cashing services;</text> </level> <level label="4"> <text>The length of time since the conviction; and</text> </level> <level label="5"> <text>The behavior and activities of the licensee or registrant since the conviction.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-123" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>Before the Commissioner takes any action under § 12–121, § 12–122, or § 12–126 of this subtitle, the Commissioner shall give the licensee or registrant an opportunity for a hearing before the Commissioner.</text> </level> <level label="b"> <text>Notice of the hearing shall be given and the hearing shall be held in accordance with Title 10, Subtitle 2 of the State Government Article.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-124" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <text>The Commissioner shall report to the appropriate State’s Attorney or the Attorney General any alleged criminal violation of this subtitle.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-125" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <text>A person who knowingly violates this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000 or imprisonment not exceeding 3 years or both.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-126" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>The Commissioner may impose a civil penalty against a person who violates this subtitle in an amount not exceeding:</text> <level label="1"> <text>$10,000 for a first offense; and</text> </level> <level label="2"> <text>$25,000 for each subsequent offense.</text> </level> </level> <level label="b"> <text>In determining the amount of civil penalty to be imposed under subsection (a) of this section, the Commissioner shall consider the following:</text> <level label="1"> <text>The seriousness of the violation;</text> </level> <level label="2"> <text>The good faith of the violator;</text> </level> <level label="3"> <text>The violator’s history of previous violations;</text> </level> <level label="4"> <text>The deleterious effect of the violation on the public;</text> </level> <level label="5"> <text>The assets of the violator; and</text> </level> <level label="6"> <text>Any other factor relevant to the determination of the civil penalty.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-127" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="1" subtitle_name="Check Cashing Services"> <level label="a"> <text>A person who is injured by a violation of this subtitle may file an action to recover damages or for injunctive relief.</text> </level> <level label="b"> <text>A court may award a prevailing plaintiff under this section:</text> <level label="1"> <text>Up to 3 times the amount of actual damages; and</text> </level> <level label="2"> <text>An amount at least equal to the amount paid by the plaintiff to the defendant, reasonable attorney’s fees, and costs.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-201" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="2" subtitle_name="Foreign Banks"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Affiliated corporation” means any corporation, whether incorporated under the laws of this State or of any other jurisdiction, of which 25 percent or more of the outstanding voting shares are owned of record or beneficially by:</text> <level label="1"> <text>A foreign bank; or</text> </level> <level label="2"> <text>Persons who own of record or beneficially 25 percent or more of the outstanding voting shares of a foreign bank.</text> </level> </level> <level label="c"> <text>“Bank holding company” means a corporation that owns of record or beneficially 25 percent or more of the outstanding voting shares of:</text> <level label="1"> <text>A state banking institution that has its principal banking office in this State; or</text> </level> <level label="2"> <text>A national banking association that has its principal banking office in this State.</text> </level> </level> <level label="d"> <text>“Foreign bank” means any bank or trust company other than:</text> <level label="1"> <text>A state banking institution that has its principal banking office in this State; and</text> </level> <level label="2"> <text>A national banking association that has its principal banking office in this State.</text> </level> </level> <level label="e"> <text>“Foreign banking corporation” means:</text> <level label="1"> <text>A foreign bank; or</text> </level> <level label="2"> <text>Any corporation that:</text> <level label="i"> <text>Is controlled by a foreign bank;</text> </level> <level label="ii"> <text>Controls a foreign bank; or</text> </level> <level label="iii"> <text>Is controlled by persons who control a foreign bank or foreign bank holding company.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-207" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="2" subtitle_name="Foreign Banks"> <level label="a"> <text>Except as provided in subsection (b) of this section, a foreign banking corporation may not have an office in this State for any purpose unless:</text> <level label="1"> <text>The foreign banking corporation obtains from the Commissioner a permit for the office; or</text> </level> <level label="2"> <text>The office is authorized under:</text> <level label="i"> <text>The Riegle–Neal Interstate Banking and Branching Efficiency Act of 1994 or other federal law; or</text> </level> <level label="ii"> <text>Title 5, Subtitle 9 or Subtitle 10 of this article.</text> </level> </level> </level> <level label="b"> <text>A foreign banking corporation that maintains another license issued by the Commissioner is exempt from obtaining a permit under this section.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-208" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="2" subtitle_name="Foreign Banks"> <level label="a"> <text>To apply for a permit for an office, a foreign banking corporation shall submit to the Commissioner an application on the form that the Commissioner requires.</text> </level> <level label="b"> <text>The application shall state:</text> <level label="1"> <text>The location of each proposed office;</text> </level> <level label="2"> <text>A specific description of the proposed operations; and</text> </level> <level label="3"> <text>The services to be performed for the public.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-209" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="2" subtitle_name="Foreign Banks"> <text>On application for a permit, the Commissioner shall issue the permit, if the Commissioner determines that the establishment and operations of the proposed office will not violate any law of this State that applies to banks and banking.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-210" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="2" subtitle_name="Foreign Banks"> <level label="a"> <text>A permit expires on the third anniversary of its effective date, unless the permit is renewed for a 3–year term as provided in this section.</text> </level> <level label="b"> <text>Before its permit expires, the foreign banking corporation may renew the permit for additional 3–year terms if the foreign banking corporation:</text> <level label="1"> <text>At least 30 days before its permit expires submits to the Commissioner a renewal application on the form that the Commissioner requires; and</text> </level> <level label="2"> <text>Meets the requirements for issuance of a permit under § 12–209 of this subtitle.</text> </level> </level> <level label="c"> <text>The Commissioner shall renew the permit of each foreign banking corporation that meets the requirements of this section.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-211" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="2" subtitle_name="Foreign Banks"> <text>The Commissioner shall set the application and renewal fees in amounts that reasonably relate to the cost of processing the applications.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-401" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Accelerated mortgage payment service” means the service of receiving funds from a mortgagor for the purpose of making mortgage payments to a mortgagee on behalf of the mortgagor in order to exceed the regularly scheduled minimum payment obligation under the terms of the mortgage.</text> </level> <level label="2"> <text>“Accelerated mortgage payment service” does not include the collection by a mortgagee of accelerated payments from the mortgagee’s own mortgagors.</text> </level> </level> <level label="c"> <text>“Authorized delegate” means a person who is authorized by a licensee to engage in the business of money transmission under a licensed name at any location other than a licensed location.</text> </level> <level label="d"> <level label="1"> <text>“Bill payer service” means the service of receiving funds from an obligor for the purpose of paying the obligor’s bills, invoices, mortgages, or accounts.</text> </level> <level label="2"> <text>“Bill payer service” does not include the service described in paragraph (1) of this subsection that is provided by a nonprofit organization that is exempt from taxation under § 501(c)(3) of the Internal Revenue Code.</text> </level> </level> <level label="e"> <text>“Control” means:</text> <level label="1"> <text>If the licensee is a corporation:</text> <level label="i"> <text>The direct or indirect ownership of, or the right to control, 25% or more of the voting shares of the licensee; or</text> </level> <level label="ii"> <text>The ability to elect a majority of the directors or otherwise effect a change in policy of the licensee; and</text> </level> </level> <level label="2"> <text>If the licensee is a person other than a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of the licensee, whether through ownership, by contract, or otherwise.</text> </level> </level> <level label="f"> <level label="1"> <text>“Control person” means a person who has the power, directly or indirectly, to direct the management or policies of a money transmitter, whether through ownership of securities, by contract, or otherwise.</text> </level> <level label="2"> <text>“Control person” includes a person who:</text> <level label="i"> <text>Is a general partner, an officer, or a director of a money transmitter, or a person who occupies a similar position or performs a similar function;</text> </level> <level label="ii"> <text>Directly or indirectly has the right to vote 10% or more of a class of voting securities, or has the power to sell or direct the sale of 10% or more of a class of voting securities, of a money transmitter; or</text> </level> <level label="iii"> <text>In the case of a partnership, a limited partnership, a limited liability partnership, a limited liability company, or any other business entity:</text> <level label="1"> <text>Has the right to receive on liquidation or dissolution of a money transmitter 10% or more of the capital of a money transmitter; or</text> </level> <level label="2"> <text>Has contributed 10% or more of the capital of a money transmitter.</text> </level> </level> </level> </level> <level label="g"> <text>“Currency” has the meaning stated in 31 C.F.R. § 1010.100(m).</text> </level> <level label="h"> <text>“Deposit in lieu of a surety bond” means an investment in:</text> <level label="1"> <text>Cash;</text> </level> <level label="2"> <text>Unless found by the Commissioner to be unacceptable, a certificate of deposit or other debt obligation, except a capital note, of a State–chartered or federally chartered financial institution, other–state bank, or foreign bank that:</text> <level label="i"> <text>Is located in this State or maintains a branch in this State; and</text> </level> <level label="ii"> <text>Is authorized to maintain deposit or share accounts;</text> </level> </level> <level label="3"> <text>Unless found by the Commissioner to be unacceptable:</text> <level label="i"> <text>Obligations of or guaranteed by the United States, its departments, agencies, or instrumentalities, or obligations of any state, territory, or municipality or any political subdivision of any state, territory, or municipality;</text> </level> <level label="ii"> <text>Any investment securities, money market mutual funds, interest–bearing bills or notes, debentures, or stock traded on any national securities exchange or on a national over–the–counter market bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates such securities; and</text> </level> <level label="iii"> <text>Any demand borrowing agreement or agreements in an amount or aggregate amount which does not exceed 10% of the net worth of the company liable for payment under the agreement or agreements as shown on financial statements certified by a certified public accountant acceptable to the Commissioner, provided that the company is a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange and is not a licensee or authorized delegate of a licensee under this subtitle; or</text> </level> </level> <level label="4"> <text>Any other investment that the Commissioner approves.</text> </level> </level> <level label="i"> <text>“Executive officer” means a president, vice president, senior officer responsible for business operations, chief financial officer, or any other individual who performs similar functions.</text> </level> <level label="j"> <text>“License” means a license issued in any form by the Commissioner under this subtitle to engage in the business of money transmission, including as provided for through NMLS.</text> </level> <level label="k"> <level label="1"> <text>“Licensed location” means any location listed by the licensee in NMLS in accordance with this subtitle.</text> </level> <level label="2"> <text>“Licensed location” includes a self–service financial kiosk.</text> </level> <level label="3"> <text>“Licensed location” does not include an authorized delegate.</text> </level> </level> <level label="l"> <text>“Licensed name” means:</text> <level label="1"> <text>The licensee’s legal name; and</text> </level> <level label="2"> <text>Any trade name used by the licensee in accordance with § 2–121 of this article.</text> </level> </level> <level label="m"> <text>“Licensee” means a person licensed under this subtitle to engage in the business of money transmission.</text> </level> <level label="n"> <text>“Material litigation” means litigation that according to generally accepted accounting principles:</text> <level label="1"> <text>Is deemed significant to an applicant’s or licensee’s financial health; and</text> </level> <level label="2"> <text>Would be required to be referenced in the applicant’s or licensee’s annual audited financial statements, report to shareholders, or similar document.</text> </level> </level> <level label="o"> <text>“Monetary value” means a medium of exchange whether or not redeemable in money.</text> </level> <level label="p"> <level label="1"> <text>“Money transmission” means engaging in the business of selling or issuing payment instruments or prepaid access or receiving currency, funds, or other value that substitutes for currency and transferring currency, funds, or other value that substitutes for currency to another person or a location within or outside the United States by any means, including electronically, through the Internet, through a mobile application, through a network of persons, or through an informal value transfer system.</text> </level> <level label="2"> <text>“Money transmission” includes any other activity that the Commissioner identifies as money transmission by regulation.</text> </level> </level> <level label="q"> <level label="1"> <text>“Money transmitter” means a person that engages in money transmission that is required to be licensed under this subtitle, whether or not the person maintains a license.</text> </level> <level label="2"> <text>“Money transmitter” includes:</text> <level label="i"> <text>A bill payer service; and</text> </level> <level label="ii"> <text>An accelerated mortgage payment service.</text> </level> </level> <level label="3"> <text>“Money transmitter” does not include a person designated as an agent of a payor for the purpose of providing payroll processing services for which the agent would otherwise need to be licensed under this subtitle, if:</text> <level label="i"> <text>There is written agreement between the payor and the agent that directs the agent to provide payroll processing services on the payor’s behalf;</text> </level> <level label="ii"> <text>The payor holds the agent out to employees and other payees as providing payroll processing services on the payor’s behalf; and</text> </level> <level label="iii"> <text>The payor’s obligation to a payee, including an employee or another party entitled to receive funds via the payroll processing services provided by the agent, is not extinguished if the agent fails to remit the funds to the payee.</text> </level> </level> </level> <level label="r"> <text>“Outstanding money transmission” means:</text> <level label="1"> <text>With respect to a payment instrument or prepaid access, a payment instrument or prepaid access, that has been sold or issued in the United States directly by a licensee or an authorized delegate of a licensee that has been reported as not yet paid by or for the licensee; and</text> </level> <level label="2"> <text>With respect to money received for transmission, currency, funds, or other value that substitutes for currency received by a licensee or an authorized delegate of a licensee that has been received but not yet paid to the beneficiary.</text> </level> </level> <level label="s"> <level label="1"> <text>“Payment instrument” means any electronic or written check, draft, money order, traveler’s check, or other electronic or written instrument or order for the transmission or payment of money, sold or issued to one or more persons, whether or not the instrument is negotiable.</text> </level> <level label="2"> <text>“Payment instrument” does not include any credit card voucher, letter of credit, or tangible object redeemable by the issuer in goods or services.</text> </level> </level> <level label="t"> <text>“Permissible investment” means:</text> <level label="1"> <text>Cash;</text> </level> <level label="2"> <text>Unless found by the Commissioner to be unacceptable, a certificate of deposit or other debt obligation, except a capital note, of a State–chartered or federally chartered financial institution, other–state bank, or foreign bank that:</text> <level label="i"> <text>Is located in this State or maintains a branch in this State; and</text> </level> <level label="ii"> <text>Is authorized to maintain deposit or share accounts;</text> </level> </level> <level label="3"> <text>Unless found by the Commissioner to be unacceptable:</text> <level label="i"> <text>Obligations of or guaranteed by the United States, its departments, agencies, or instrumentalities, or obligations of any state, territory, or municipality or any political subdivision of any state, territory, or municipality;</text> </level> <level label="ii"> <text>Any investment securities, money market mutual fund, interest–bearing bills or notes, debentures or stock traded on any national securities exchange or on a national over–the–counter market bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates such securities; and</text> </level> <level label="iii"> <text>Any demand borrowing agreement or agreements in an amount or aggregate amount which does not exceed 10% of the net worth of the company liable for payment under the agreement or agreements as shown on financial statements certified by a certified public accountant acceptable to the Commissioner, provided that the company is a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange and is not a licensee or authorized delegate of a licensee under this subtitle;</text> </level> </level> <level label="4"> <text>Receivables that are due to a licensee from its authorized delegates under a contract described in § 12–413 of this subtitle that are not past due or doubtful of collection; or</text> </level> <level label="5"> <text>Any other investment that the Commissioner approves.</text> </level> </level> <level label="u"> <level label="1"> <text>“Prepaid access” means access to funds or the value of funds that have been paid in advance and can be retrieved or transferred at some point in the future through an electronic device or vehicle including:</text> <level label="i"> <text>A card;</text> </level> <level label="ii"> <text>A code;</text> </level> <level label="iii"> <text>An electronic serial number;</text> </level> <level label="iv"> <text>A mobile identification; or</text> </level> <level label="v"> <text>A personal identification.</text> </level> </level> <level label="2"> <text>“Prepaid access” does not include access to funds or the value of funds that may be redeemed only in the issuer’s goods or services.</text> </level> </level> <level label="v"> <text>“Self–service financial kiosk” means a stand–alone automated platform through which a consumer may obtain money transmission services.</text> </level> <level label="w"> <text>“Surety device” means:</text> <level label="1"> <text>A surety bond; or</text> </level> <level label="2"> <text>A deposit in lieu of a surety bond.</text> </level> </level> <level label="x"> <text>“Unique identifier” means a number or another identifier assigned by NMLS.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-402" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <text>The provisions of this subtitle do not apply to:</text> <level label="1"> <text>Any banking institution;</text> </level> <level label="2"> <text>Any other-state bank;</text> </level> <level label="3"> <text>Any national banking association or savings bank;</text> </level> <level label="4"> <text>Any credit union;</text> </level> <level label="5"> <text>Any savings and loan association;</text> </level> <level label="6"> <text>The United States government or any of its departments, agencies, or instrumentalities;</text> </level> <level label="7"> <text>An accredited institution of higher education, as defined under § 10-101 of the Education Article;</text> </level> <level label="8"> <text>The sale of payment instruments by any person on behalf of any other person who is exempted by this subsection, if the payment instruments were received from the other person under a trust receipt for the specific purpose of sale;</text> </level> <level label="9"> <text>The provision of electronic transfer of government benefits for any federal, state, or county governmental agency as defined in Federal Reserve Board Regulation E, by a contractor for and on behalf of the United States or any of its departments, agencies, or instrumentalities, or any state or any political subdivision of any state; or</text> </level> <level label="10"> <text>Any authorized delegate of a licensee, acting within the scope of authority conferred by a written contract as described in § 12-413 of this subtitle.</text> </level> </level> <level label="b"> <text>Any person who is exempted by this section nevertheless may apply for and, if qualified, receive a license.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-403" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <text>To carry out the provisions of this subtitle, the Commissioner may:</text> <level label="1"> <text>Adopt rules and regulations;</text> </level> <level label="2"> <text>Enter into cooperative and information sharing agreements with any federal or State agency having supervisory responsibility over the business of money transmission; and</text> </level> <level label="3"> <text>Provide any federal or State agency having supervisory responsibility over money transmission with any documents or other information.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-404" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <text>All revenue received for the licensing and assessment of money transmitters under this subtitle and any other fee, examination assessment, or revenue received by the Commissioner under this subtitle shall be:</text> <level label="1"> <text>Credited to the Non–Depository Special Fund established under § 2–120 of this article; and</text> </level> <level label="2"> <text>Used in accordance with § 2–120(d) of this article.</text> </level> </level> <level label="b"> <text>Notwithstanding subsection (a) of this section, the Commissioner shall pay all fines and penalties collected by the Commissioner under this subtitle into the General Fund of the State.</text> </level> <level label="c"> <text>Subject to § 2–120(h) of this article, the Commissioner may impose an annual assessment on any licensee under this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-405" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <text>A person may not engage in the business of money transmission if that person, or the person with whom that person engages in the business of money transmission, is located in the State unless that person:</text> <level label="1"> <text>Is licensed by the Commissioner;</text> </level> <level label="2"> <text>Is an authorized delegate of a licensee under whose name the business of money transmission occurs; or</text> </level> <level label="3"> <text>Is a person exempted from licensing under this subtitle or §§ 10–14A–03 and 10–14B–03 of the State Government Article.</text> </level> </level> <level label="b"> <text>Each licensee or license applicant shall obtain and maintain a valid unique identifier issued by NMLS on forming an account with NMLS.</text> </level> <level label="c"> <text>An applicant for an initial license or a license renewal shall apply for the license or renewal through NMLS.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-406" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <text>To qualify for a license, an applicant shall satisfy the Commissioner that the applicant:</text> <level label="1"> <text>Is of good moral character and has sufficient financial responsibility, business experience, and general fitness to:</text> <level label="i"> <text>Engage in the business of money transmission;</text> </level> <level label="ii"> <text>Warrant the belief that the business of money transmission will be conducted lawfully, honestly, fairly, and efficiently; and</text> </level> <level label="iii"> <text>Command the confidence of the public;</text> </level> </level> <level label="2"> <text>Will keep at all times the permissible investments required under § 12–418 of this subtitle;</text> </level> <level label="3"> <text>Has a tangible net worth computed according to generally accepted accounting principles of at least $150,000, plus an additional net worth of $10,000 for each licensed location or authorized delegate, up to a maximum of $500,000 as provided in subsection (b) of this section; and</text> </level> <level label="4"> <text>Has at least 3 years of experience in the business of money transmission or other related financial services business under the following conditions:</text> <level label="i"> <text>If the applicant is a sole proprietor, the applicant shall have the required experience;</text> </level> <level label="ii"> <text>If the applicant is a joint venture or partnership, at least one of the coventurers or general partners shall have the required experience; and</text> </level> <level label="iii"> <text>If the applicant is any other type of business, at least one of the principal officers or members shall have the required experience.</text> </level> </level> </level> <level label="b"> <text>The Commissioner may require a net worth of up to $500,000, subject to consideration of the following:</text> <level label="1"> <text>The nature and volume of the business or proposed business of the applicant;</text> </level> <level label="2"> <text>The amount, nature, quality, and liquidity of the assets of the applicant;</text> </level> <level label="3"> <text>The amount and nature of the liabilities, including contingent liabilities, of the applicant;</text> </level> <level label="4"> <text>The history of, and prospects for, the applicant to earn and retain income;</text> </level> <level label="5"> <text>The quality of the operations of the applicant;</text> </level> <level label="6"> <text>The quality of the management of the applicant;</text> </level> <level label="7"> <text>The nature and quality of the person that has control of the applicant; and</text> </level> <level label="8"> <text>Any other factor the Commissioner deems relevant.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-407" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <level label="1"> <text>To apply for a license, an applicant shall:</text> <level label="i"> <text>Complete, sign, and submit to the Commissioner an application made under oath in the form, and in accordance with the process, that the Commissioner requires; and</text> </level> <level label="ii"> <text>Provide all information that the Commissioner requests.</text> </level> </level> <level label="2"> <text>The applicant shall comply with all conditions and provisions of the application for a license.</text> </level> </level> <level label="b"> <text>An applicant shall provide:</text> <level label="1"> <text>The applicant’s legal name and any trade name used by the applicant in accordance with § 2–121 of this article;</text> </level> <level label="2"> <level label="i"> <text>The address of the principal executive office of the applicant;</text> </level> <level label="ii"> <text>The address of each additional location, if any, that:</text> <level label="1"> <text>The general public may reasonably view as a location that engages in the business of money transmission, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;</text> </level> <level label="2"> <text>Houses any core operational infrastructure or technology systems;</text> </level> <level label="3"> <text>Conducts any core management, information security and technology, risk and compliance, or finance functions; or</text> </level> <level label="4"> <text>Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle; and</text> </level> </level> <level label="iii"> <text>If the licensee operates a self–service financial kiosk, the following information for each self–service financial kiosk:</text> <level label="1"> <text>Unique identifying information for the self–service financial kiosk, such as the manufacturer name, model number, serial number, or asset tag;</text> </level> <level label="2"> <text>If the licensee intends to operate the self–service financial kiosk from any fixed location for more than 30 days in a calendar year, each physical address where the self–service financial kiosk will be operated; and</text> </level> <level label="3"> <text>If the licensee intends to operate the self–service financial kiosk at any location for 30 days or less in a calendar year, the geographic area where the licensee intends to operate the self–service financial kiosk;</text> </level> </level> </level> <level label="3"> <text>The name, business address, and nature of the business of each authorized delegate to be appointed by the applicant;</text> </level> <level label="4"> <text>The most recent unconsolidated financial statement of the applicant that shall:</text> <level label="i"> <text>Be prepared in accordance with generally accepted accounting principles applied on a consistent basis;</text> </level> <level label="ii"> <text>Be a certified opinion audit prepared by an independent certified public accountant;</text> </level> <level label="iii"> <text>Include a schedule of all permissible investments, if any, of the applicant; and</text> </level> <level label="iv"> <text>Be no older than 12 months before the date of the application;</text> </level> </level> <level label="5"> <text>The name, address, and telephone number of the applicant’s resident agent in the State;</text> </level> <level label="6"> <text>A history of material litigation against the applicant, if any, for the past 3 years; and</text> </level> <level label="7"> <text>Any other information that the Commissioner reasonably requires.</text> </level> </level> <level label="c"> <text>An applicant that is a business entity shall provide:</text> <level label="1"> <text>Certified copies of the applicant’s certificate of incorporation, articles of incorporation, or articles of organization, or other instrument incorporating or forming the applicant, as amended, corrected, or supplemented; and</text> </level> <level label="2"> <text>The bylaws, operating agreement, or other equivalent internal governance documents, as amended or supplemented.</text> </level> </level> <level label="d"> <text>An applicant shall provide a certificate of good standing from the state in which the applicant is incorporated or organized and a certificate of good standing from the State Department of Assessments and Taxation.</text> </level> <level label="e"> <text>With the application, the applicant shall pay to the Commissioner:</text> <level label="1"> <text>A nonrefundable investigation fee of $1,000; and</text> </level> <level label="2"> <text>A nonrefundable license fee of $2,000.</text> </level> </level> <level label="f"> <text>In addition to the license fee required under subsection (e) of this section, an applicant for an initial license shall pay to NMLS the fee that NMLS imposes in connection with processing the application.</text> </level> <level label="g"> <text>With the application, the applicant shall file evidence of a surety device with the Commissioner as provided in § 12–412 of this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-408" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <text>This section does not apply to any corporation the securities of which are exempt from registration under § 11–601(8) or (12) of the Corporations and Associations Article or any wholly owned subsidiary of the corporation.</text> </level> <level label="b"> <text>In connection with an initial application for a license under § 12–407 of this subtitle, and at any other time that the Commissioner requests, an applicant or licensee shall provide to NMLS information concerning the applicant’s identity, including:</text> <level label="1"> <text>Fingerprints for submission to the Federal Bureau of Investigation, and any other governmental agency or entity authorized to receive this information for a state, a national, or an international criminal history background check;</text> </level> <level label="2"> <text>In the case of a sole proprietorship, personal history and experience in a form prescribed by NMLS, including the submission of authorization for NMLS and the Commissioner to obtain:</text> <level label="i"> <text>An independent credit report from a consumer reporting agency described in the federal Fair Credit Reporting Act, 15 U.S.C. § 1681a(p); and</text> </level> <level label="ii"> <text>Information related to any administrative, civil, or criminal findings by any governmental jurisdiction; and</text> </level> </level> <level label="3"> <text>In the case of a corporation or another business entity:</text> <level label="i"> <text>Business history in a form prescribed by NMLS, including:</text> <level label="1"> <text>The submission of a business credit report for the applicant that is no older than 3 months before the date of the application; and</text> </level> <level label="2"> <text>Information related to any administrative, civil, or criminal findings by any governmental jurisdiction; and</text> </level> </level> <level label="ii"> <text>For each control person, personal history in a form prescribed by NMLS.</text> </level> </level> </level> <level label="c"> <text>Subject to § 12–408.1 of this subtitle, to implement this subtitle, the Commissioner may use NMLS as a channeling agent to request information from and distribute information to the Department of Justice, any other governmental agency with subject matter jurisdiction, and any other state licensing entity that has money transmitters licensed or registered with NMLS.</text> </level> <level label="d"> <text>An applicant or a licensee who is required to provide fingerprints under subsection (b) of this section shall pay the processing or other fees required by the Federal Bureau of Investigation and NMLS.</text> </level> <level label="e"> <text>The Commissioner may request from the Federal Bureau of Investigation or NMLS, as applicable, for each person who is required to provide fingerprints under subsection (b) of this section:</text> <level label="1"> <level label="i"> <text>The state, national, or international criminal history records of the person; and</text> </level> <level label="ii"> <text>A printed statement listing any conviction or other disposition of, and any plea of guilty or nolo contendere to, any criminal charge;</text> </level> </level> <level label="2"> <level label="i"> <text>An update of the initial criminal history records check or criminal history background check of the person; and</text> </level> <level label="ii"> <text>A revised statement listing any conviction or other disposition of, and any plea of guilty or nolo contendere to, any criminal charge occurring after the date of the initial criminal history records check or criminal history background check; and</text> </level> </level> <level label="3"> <text>An acknowledged receipt of the application for a criminal history records check or criminal history background check of the person.</text> </level> </level> <level label="f"> <text>If the applicant or licensee is a corporation or another business entity, the fingerprinting and criminal history records check requirements under subsection (b) of this section shall apply to an executive officer, a general partner, or a managing member of, or an individual serving in a similar capacity with respect to, the corporation or other business entity, as requested by the Commissioner.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-408.1" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <level label="1"> <text>The requirements under any federal law and Title 4, Subtitles 1 through 5 of the General Provisions Article regarding the privacy or confidentiality of information or material provided to NMLS, and any privilege arising under federal or state law, including the rules of any federal or state court with respect to that information or material, shall continue to apply to that information or material after the information or material has been disclosed to NMLS.</text> </level> <level label="2"> <text>The information and material may be shared with all state and federal regulatory officials having oversight authority over the money transmission industry, including the Financial Crimes Enforcement Network, without the loss of privilege or the loss of confidentiality protections provided by federal law or Title 4, Subtitles 1 through 5 of the General Provisions Article.</text> </level> </level> <level label="b"> <text>The Commissioner may enter into information–sharing agreements with other governmental agencies, the Conference of State Bank Supervisors, or other associations representing governmental agencies, including the Financial Crimes Enforcement Network.</text> </level> <level label="c"> <text>Information or material that is subject to a privilege or confidentiality under subsection (a) of this section may not be subject to:</text> <level label="1"> <text>Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or agency of the federal government or a state that has received the information or material; or</text> </level> <level label="2"> <text>Subpoena, discovery, or admission into evidence, in any private civil action or administrative process, unless with respect to any privilege held by NMLS, the person to whom the information or material pertains waives, in whole or in part, that privilege.</text> </level> </level> <level label="d"> <text>Any provisions of Title 4, Subtitles 1 through 5 of the General Provisions Article relating to the disclosure of any information or material described in subsection (a) of this section that are inconsistent with subsection (a) of this section shall be superseded by the requirements of this section.</text> </level> <level label="e"> <text>This section does not apply to information or material relating to publicly adjudicated disciplinary and enforcement actions against a money transmitter or its authorized delegate that is included in NMLS and designated for access by the public.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-409" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <text>After the filing of a complete application, the Commissioner shall investigate the financial condition and responsibility, financial and business experience, character, and general fitness of the applicant.</text> </level> <level label="b"> <level label="1"> <text>Unless the Commissioner notifies the applicant that a different time period is necessary, the Commissioner shall approve or deny each application for a license within 60 days after the date a complete application is filed.</text> </level> <level label="2"> <text>The applicant may by written request to the Commissioner withdraw the application at any time before the issuance of the license.</text> </level> </level> <level label="c"> <text>The Commissioner shall issue a license to any applicant who meets the requirements of this subtitle.</text> </level> <level label="d"> <level label="1"> <text>If an applicant does not meet the requirements of this subtitle, the Commissioner shall:</text> <level label="i"> <text>Notify the applicant immediately of this fact;</text> </level> <level label="ii"> <text>Subject to the hearing provisions of § 12–428 of this subtitle, deny the application;</text> </level> <level label="iii"> <text>Return the surety device filed under § 12–407 of this subtitle; and</text> </level> <level label="iv"> <text>Keep the license fee and the investigation fee.</text> </level> </level> <level label="2"> <text>Within 30 days after the Commissioner denies an application, the Commissioner shall state the reasons for the denial in writing and mail them to the address listed in the application.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-410" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <text>Information in NMLS associated with a license approved by the Commissioner under this subtitle shall include the following:</text> <level label="1"> <text>The licensee’s legal name and any trade name used by the licensee in accordance with § 2–121 of this article;</text> </level> <level label="2"> <text>The address of the licensee’s principal executive office;</text> </level> <level label="3"> <text>The address of each additional location, if any, where the licensee does business and that:</text> <level label="i"> <text>The general public may reasonably view as a location that offers money transmission services, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;</text> </level> <level label="ii"> <text>Houses any core operational infrastructure or technology systems;</text> </level> <level label="iii"> <text>Conducts any core management, information security and technology, risk and compliance, or finance functions; or</text> </level> <level label="iv"> <text>Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle; and</text> </level> </level> <level label="4"> <text>The information required by § 12–407(b)(2)(iii) of this subtitle for each self–service financial kiosk, if any, of the licensee.</text> </level> </level> <level label="b"> <text>A licensee shall maintain and update the information in NMLS associated with the licensee’s license to reflect accurately at all times the information required by subsection (a) of this section.</text> </level> <level label="c"> <text>The unique identifier assigned by NMLS to a licensee shall constitute the licensee’s license number.</text> </level> <level label="d"> <text>A license authorizes the licensee to do business under the license at any licensed location, under any licensed name and, for each self–service financial kiosk, the address or geographic area listed for the self–service financial kiosk in NMLS, or as otherwise authorized by the Commissioner through regulation.</text> </level> <level label="e"> <text>A license may not be transferred or assigned.</text> </level> <level label="f"> <level label="1"> <text>Each licensee shall conspicuously post, in 48 point or larger type, at each licensed location the following information:</text> <level label="i"> <text>The licensee’s unique identifier; and</text> </level> <level label="ii"> <text>A statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee.</text> </level> </level> <level label="2"> <text>Each authorized delegate, at each location open to the public, shall conspicuously post, in at least 48 point type, the following information:</text> <level label="i"> <text>A notice stating, “the Commissioner of Financial Regulation for the State of Maryland will accept all questions or complaints regarding this authorized delegate of (name of licensee and unique identifier) at (address of Commissioner), phone (toll–free phone number of the Commissioner)”; and</text> </level> <level label="ii"> <text>A statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee.</text> </level> </level> <level label="3"> <text>Each licensee shall conspicuously display the following information on the licensee’s website, any mobile application through which the services are offered, the outside of the self–service financial kiosk, any software application accessible to the public and used for money transmission services, and profile page within each social media platform the licensee uses:</text> <level label="i"> <text>The licensee’s unique identifier;</text> </level> <level label="ii"> <text>A link to the NMLS Consumer Access website; and</text> </level> <level label="iii"> <text>A notice stating, “The Commissioner of Financial Regulation for the State of Maryland will accept all questions or complaints from Maryland residents regarding (name of licensee and unique identifier) at (address of Commissioner), phone (toll–free phone number of the Commissioner)”.</text> </level> </level> </level> <level label="g"> <text>A licensee is not required to post the information required in subsection (f)(1) of this section at a licensed location if the licensed location is not a self–service financial kiosk and the licensee does not regularly grant access to that licensed location to members of the general public.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-411" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <text>Subject to any regulations the Commissioner adopts in connection with the transition to NMLS, an initial license term shall:</text> <level label="1"> <text>Begin on the day the license is issued; and</text> </level> <level label="2"> <text>Expire on December 31 of the year:</text> <level label="i"> <text>The license is issued, if the license is issued before November 1; or</text> </level> <level label="ii"> <text>Succeeding the year that the license is issued, if the license is issued on or after November 1.</text> </level> </level> </level> <level label="b"> <text>On or after November 1 of each year, a license may be renewed for a 1–year term, if the licensee:</text> <level label="1"> <text>Otherwise is entitled to be licensed;</text> </level> <level label="2"> <text>Files evidence of a surety device required under § 12–412 of this subtitle;</text> </level> <level label="3"> <text>Pays to the Commissioner a nonrefundable renewal fee of $2,000; and</text> </level> <level label="4"> <text>Submits to the Commissioner:</text> <level label="i"> <text>A renewal application in the form and in accordance with the process that the Commissioner requires;</text> </level> <level label="ii"> <text>A financial statement that complies with the requirements of § 12–407(b)(4) of this subtitle; and</text> </level> <level label="iii"> <text>Any other information that the Commissioner reasonably requires to determine that the renewal applicant continues to be eligible to be licensed.</text> </level> </level> </level> <level label="c"> <text>In addition to the license renewal fee required under subsection (b)(3) of this section, an applicant for a license renewal shall pay to NMLS the fee that NMLS imposes in connection with the renewal application.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-412" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Average daily money transmission liability” means the amount of the applicant’s or licensee’s outstanding money transmission obligations in the State at the end of each day in a given quarter, added together and divided by the total number of days in that quarter.</text> </level> <level label="3"> <text>“Trust company” has the meaning stated in § 1–101 of the Estates and Trusts Article.</text> </level> </level> <level label="b"> <level label="1"> <text>With an application for a new license, an applicant shall file a surety bond with the Commissioner.</text> </level> <level label="2"> <text>The bond shall run to the Commissioner, as obligee, for the benefit of:</text> <level label="i"> <text>The State; and</text> </level> <level label="ii"> <text>Any individual who has been damaged by a violation of State law or regulation governing the business of money transmission committed by a licensee or an authorized delegate of a licensee.</text> </level> </level> <level label="3"> <text>The bond shall be:</text> <level label="i"> <text>In the amount required under subsection (d) of this section;</text> </level> <level label="ii"> <text>Issued by a surety company that:</text> <level label="1"> <text>Is authorized to do business in the State; and</text> </level> <level label="2"> <text>Holds a certificate of authority issued by the Maryland Insurance Commissioner; and</text> </level> </level> <level label="iii"> <text>Conditioned that the licensee and any authorized delegate of the licensee shall:</text> <level label="1"> <text>Comply with all State and federal laws and regulations governing the business of money transmission; and</text> </level> <level label="2"> <text>Fulfill all obligations to all parties to a money transmission.</text> </level> </level> </level> <level label="4"> <text>The liability of the surety:</text> <level label="i"> <text>Shall be continuous;</text> </level> <level label="ii"> <text>May not be aggregated or cumulative, whether or not the bond is renewed, continued, replaced, or modified;</text> </level> <level label="iii"> <text>May not be determined by adding together the penal sum of the bond, or any part of the penal sum of the bond, in existence at any two or more points in time;</text> </level> <level label="iv"> <text>Shall be considered to be one continuous obligation, regardless of increases or decreases in the penal sum of the bond;</text> </level> <level label="v"> <text>May not be affected by:</text> <level label="1"> <text>The insolvency or bankruptcy of the licensee;</text> </level> <level label="2"> <text>Any misrepresentation, breach of warranty, failure to pay a premium, or any other act or omission of the licensee; or</text> </level> <level label="3"> <text>The suspension of the licensee’s license;</text> </level> </level> <level label="vi"> <text>May not require an administrative enforcement action by the Commissioner as a prerequisite to liability; and</text> </level> <level label="vii"> <text>Shall continue for 3 years after the later of the date on which:</text> <level label="1"> <text>The bond is canceled; or</text> </level> <level label="2"> <text>The licensee, for any reason, ceases to be licensed.</text> </level> </level> </level> <level label="5"> <level label="i"> <text>A bond may be canceled by the surety or the licensee by giving notice of cancellation to the Commissioner.</text> </level> <level label="ii"> <text>Notice under subparagraph (i) of this paragraph shall:</text> <level label="1"> <text>Be in writing; and</text> </level> <level label="2"> <text>Be sent by certified mail, return receipt requested.</text> </level> </level> <level label="iii"> <text>A cancellation of a bond under this paragraph is not effective until 90 days after receipt of a notice of cancellation by the Commissioner.</text> </level> </level> <level label="6"> <text>A claim against the bond may be filed with the surety by:</text> <level label="i"> <text>A claimant; or</text> </level> <level label="ii"> <text>The Commissioner for the benefit of a claimant or the State.</text> </level> </level> <level label="7"> <text>If the amount of claims under a bond exceeds the amount of the bond, the surety:</text> <level label="i"> <text>Shall pay the amount of the bond to the Commissioner for pro rata distribution to claimants; and</text> </level> <level label="ii"> <text>Is relieved of liability under the bond.</text> </level> </level> <level label="8"> <level label="i"> <text>If the penal amount of a bond is reduced by payment of a claim or judgment, the licensee shall file a new or additional bond with the Commissioner.</text> </level> <level label="ii"> <text>The Commissioner may permit a bond to be reduced or eliminated if the amount of the licensee’s payment instruments outstanding in the State are reduced.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>A deposit in lieu of a surety bond made to satisfy the provisions of subsection (b) of this section shall:</text> <level label="i"> <text>Have a market value equal to the amount required under subsection (d) of this section; and</text> </level> <level label="ii"> <text>Be held by the Commissioner to secure the same obligations as are required to be secured by a surety bond under subsection (b) of this section.</text> </level> </level> <level label="2"> <text>At any time, a licensee may exchange investments for other investments that meet the requirements of this subsection.</text> </level> <level label="3"> <text>The Commissioner may sell or transfer investments and distribute the proceeds on the same basis as provided for claims against a surety bond under paragraph (b)(2) of this section.</text> </level> <level label="4"> <text>As long as a licensee is solvent, the licensee is entitled to receive any interest or dividends earned by the investments.</text> </level> <level label="5"> <level label="i"> <text>The Commissioner may place the investments in the custody of any qualified trust company in this State.</text> </level> <level label="ii"> <text>The licensee shall pay the compensation of this custodian.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The amount of the surety bond under subsection (b) of this section or the deposit in lieu of a surety bond under subsection (c) of this section shall be the greater of:</text> <level label="i"> <text>$150,000; or</text> </level> <level label="ii"> <text>100% of the applicant’s average daily money transmission liability in the State calculated for the most recently completed quarter, up to a maximum of $2,000,000.</text> </level> </level> <level label="2"> <text>The quarters for calculating the average daily money transmission liability under paragraph (1) of this subsection for any licensee required to do so shall be the quarters ending March 31, June 30, September 30, and December 31.</text> </level> </level> <level label="e"> <level label="1"> <text>If the penal amount of a surety bond or a deposit in lieu of a surety bond is reduced by a payment of a claim or judgment, the licensee shall file with the Commissioner evidence of any new or additional surety bond or deposit in lieu of a surety bond in the amount that the Commissioner sets.</text> </level> <level label="2"> <text>If the Commissioner at any time believes that the surety bond or the deposit in lieu of a surety bond is insufficient, exhausted, or otherwise unsatisfactory, the Commissioner may require evidence of an additional surety bond or deposit in lieu of a surety bond to be filed by the licensee.</text> </level> <level label="3"> <text>Within 30 days after the Commissioner makes a written demand for the new surety bond or deposit in lieu of a surety bond, the licensee shall file the evidence of the new surety bond or deposit in lieu of a surety bond.</text> </level> </level> <level label="f"> <text>A penalty imposed against a licensee under § 2–115(b) of this article or § 12–426(e)(2) of this subtitle may be collected and paid from the proceeds of a surety bond or a deposit in lieu of a surety bond required under this section.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-413" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <level label="1"> <text>Each authorized delegate that a licensee appoints under a license is the designated agent of the licensee for all purposes in connection with the licensee’s business under that license.</text> </level> <level label="2"> <text>Each licensee under this subtitle is liable for the payment of all money transmissions by the licensee, in whatever form, directly or through an authorized delegate.</text> </level> </level> <level label="b"> <text>Each authorized delegate that a licensee appoints under a license shall be authorized by an express written contract, which shall provide:</text> <level label="1"> <text>That the licensee appoints the person as its authorized delegate with authority to engage in the business of money transmission on behalf of the licensee;</text> </level> <level label="2"> <text>That neither the licensee nor the authorized delegate may authorize subagents or subdelegates without written consent of the Commissioner;</text> </level> <level label="3"> <text>That the authorized delegate is subject to supervision, examination, and regulation by the Commissioner; and</text> </level> <level label="4"> <text>That the authorized delegate will operate in full compliance with all applicable laws and regulations.</text> </level> </level> <level label="c"> <text>The licensee shall provide to each authorized delegate a written copy of the licensee’s operating policies and procedures, which shall be updated on a reasonable periodic basis.</text> </level> <level label="d"> <text>Copies of all contracts required under this section shall be made available to the Commissioner, upon request.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-413.1" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Agent” includes an authorized delegate, a subagent, and a subdelegate of a licensee.</text> </level> <level label="3"> <text>“Elder adult” has the meaning stated in § 1–306 of this article.</text> </level> <level label="4"> <text>“Financial abuse” has the meaning stated in § 1–306 of this article.</text> </level> <level label="5"> <text>“Financial exploitation” has the meaning stated in § 1–306 of this article.</text> </level> </level> <level label="b"> <text>This section does not apply to a licensee or an agent that:</text> <level label="1"> <text>Engages in the business of money transmission solely through the Internet; or</text> </level> <level label="2"> <level label="i"> <text>Engages in:</text> <level label="1"> <text>Selling or issuing stored value devices, traveler’s checks, or money orders, or providing bill payer services; or</text> </level> <level label="2"> <text>Any combination of selling or issuing stored value devices, traveler’s checks, or money orders, or providing bill payer services; and</text> </level> </level> <level label="ii"> <text>Does not engage in any other business regulated under this subtitle.</text> </level> </level> </level> <level label="c"> <text>On or before April 1 of each year, a licensee shall provide to each agent, through which it engages in the business of money transmission, training materials on how to:</text> <level label="1"> <text>Recognize financial abuse and financial exploitation of an elder adult; and</text> </level> <level label="2"> <text>Respond appropriately if the agent suspects that the agent is being asked to engage in the business of money transmission for a fraudulent transaction in which an elder adult is the victim of financial abuse or financial exploitation.</text> </level> </level> <level label="d"> <text>A licensee shall provide the training materials required under subsection (c) of this section to each newly appointed agent within 1 month after appointment of the agent.</text> </level> <level label="e"> <level label="1"> <text>A licensee shall include a clear, concise, and conspicuous fraud warning on all transmittal forms used by an individual to send money to another individual.</text> </level> <level label="2"> <text>The fraud warning shall include a toll–free telephone number for individuals to call to report fraud or suspected fraud.</text> </level> <level label="3"> <text>A licensee shall monitor the activities of its agents relating to transmittals by individuals.</text> </level> </level> <level label="f"> <level label="1"> <level label="i"> <text>A licensee shall allow an individual to voluntarily be disqualified from sending money transmissions from or receiving money transmissions in the State.</text> </level> <level label="ii"> <text>A licensee may require an individual to provide written notice of the individual’s disqualification to the licensee at the address on the licensee’s license.</text> </level> <level label="iii"> <text>Unless extended under paragraph (2) of this subsection or terminated under paragraph (3) of this subsection, a disqualification is effective until January 1 of the year following the year in which notice of the individual’s disqualification is given to the licensee.</text> </level> </level> <level label="2"> <level label="i"> <text>Before a disqualification becomes ineffective, an individual may extend the disqualification by giving written notice of the extension to the licensee at the address on the licensee’s license.</text> </level> <level label="ii"> <text>An extension of a disqualification under subparagraph (i) of this paragraph is effective until January 1 of the year following the year in which notice of the extension is given to the licensee.</text> </level> </level> <level label="3"> <text>An individual may terminate a disqualification at any time by giving written notice of the termination to the licensee at the address on the licensee’s license.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-414" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <text>An authorized delegate may not make any fraudulent or false statement or misrepresentation to a licensee or to the Commissioner.</text> </level> <level label="b"> <text>All money transmission services conducted by an authorized delegate shall be conducted strictly in accordance with the licensee’s operating policies and procedures provided to the authorized delegate.</text> </level> <level label="c"> <text>An authorized delegate shall remit all funds owed to the licensee in accordance with the terms of the contract between the licensee and the authorized delegate.</text> </level> <level label="d"> <level label="1"> <text>All funds received by an authorized delegate from money transmission services, less fees, shall constitute trust funds belonging to the licensee from the time the funds are received by the authorized delegate until the time when the funds are remitted to the licensee.</text> </level> <level label="2"> <text>If an authorized delegate commingles any of the funds received with any other funds or property owned or controlled by the authorized delegate, all commingled funds and other property shall be impressed with a trust in favor of the licensee in an amount equal to the amount of the funds due the licensee.</text> </level> </level> <level label="e"> <text>An authorized delegate shall report to the licensee the theft or loss of a payment instrument within 24 hours after the theft or loss.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-415" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <level label="1"> <text>A licensee may not add, delete, or modify a location required to be listed in NMLS under § 12–410(a)(2), (3), or (4) of this subtitle unless:</text> <level label="i"> <text>The licensee provides to the Commissioner, through NMLS and in accordance with any regulations adopted by the Commissioner, notice of the addition, deletion, or modification;</text> </level> <level label="ii"> <text>The addition, deletion, or modification of the location is recorded with the information associated with the licensee’s license in NMLS; and</text> </level> <level label="iii"> <text>The addition, deletion, or modification of the location otherwise complies with this subtitle.</text> </level> </level> <level label="2"> <text>The licensee may not do business at a location or in a geographic area required to be listed in NMLS by § 12–410(a)(2), (3), or (4) of this subtitle until the location or geographic area is recorded with the information associated with the licensee’s license in NMLS.</text> </level> </level> <level label="b"> <level label="1"> <text>A licensee may not undergo a change in control unless the licensee:</text> <level label="i"> <text>Notifies the Commissioner through NMLS of the proposed change;</text> </level> <level label="ii"> <text>Makes a request through NMLS that the Commissioner approve the proposed change;</text> </level> <level label="iii"> <text>Provides any information the Commissioner may require under paragraph (3) of this subsection; and</text> </level> <level label="iv"> <text>Receives the approval of the Commissioner through NMLS.</text> </level> </level> <level label="2"> <text>Within 60 days after receiving a request for approval of a proposed change in control, the Commissioner may require the licensee to provide any information deemed necessary to determine whether a new application is required because of the proposed change in control.</text> </level> <level label="3"> <text>The Commissioner shall approve or deny a request for approval of a proposed change in control:</text> <level label="i"> <text>Within 60 days after the date the Commissioner receives the request; or</text> </level> <level label="ii"> <text>If the Commissioner requests information from the licensee under paragraph (2) of this subsection, within 60 days after the date the information is received by the Commissioner.</text> </level> </level> <level label="4"> <text>If the Commissioner does not deny a request for approval of a proposed change in control as provided under paragraph (3) of this subsection, the request shall be deemed approved.</text> </level> </level> <level label="c"> <text>In addition to any sanctions that may be imposed by the Commissioner under this subtitle, a licensee who fails to provide in a timely manner the notice required under subsection (a)(1) or (b)(1) of this section shall:</text> <level label="1"> <text>For each failure, pay to the Commissioner a penalty in the amount of $500; and</text> </level> <level label="2"> <text>For a licensee who fails to provide the notice required under subsection (b)(1) of this section in a timely manner, file with the Commissioner an application for a new license, together with all appropriate application and investigation fees.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-416" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <text>A licensee shall submit to NMLS a call report once each quarter on the date, in the form, and containing the information that NMLS requires.</text> </level> <level label="b"> <level label="1"> <text>Within 15 days after the occurrence of any of the following events, a licensee shall file a written report with the Commissioner describing the event and its expected impact on the licensee’s activities in the State:</text> <level label="i"> <text>The filing for bankruptcy or reorganization by the licensee;</text> </level> <level label="ii"> <text>The institution of revocation or suspension proceedings against the licensee by any state or governmental authority with regard to the licensee’s money transmission activities in any state;</text> </level> <level label="iii"> <text>Any felony indictment or conviction of the licensee or any of its officers or directors related to money transmission activities;</text> </level> <level label="iv"> <text>The commencement of any civil action by a buyer or holder of a payment instrument or person for whom or to whom money is transmitted against a licensee; and</text> </level> <level label="v"> <text>The filing of any material litigation against the licensee.</text> </level> </level> <level label="2"> <text>The written report required under paragraph (1) of this subsection shall be submitted to the Commissioner through NMLS.</text> </level> </level> <level label="c"> <text>A licensee shall submit to NMLS the Uniform Authorized Agent Reporting once each quarter on the date that NMLS requires.</text> </level> <level label="d"> <text>A licensee promptly shall file with the Commissioner any demand borrowing agreement or agreements into which the licensee may enter as a permissible investment or a deposit in lieu of a surety bond.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-417" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <text>A licensee shall comply with all federal and State laws and regulations concerning the business of money transmission, money laundering, and abandoned property.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-418" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <level label="1"> <text>Subject to paragraph (2) of this subsection, a licensee shall have at all times permissible investments having an aggregate market value, calculated in accordance with generally accepted accounting principles, of not less than the aggregate face amount of all outstanding money transmissions conducted by the licensee in the United States.</text> </level> <level label="2"> <text>The requirement imposed under paragraph (1) of this subsection may be waived by the Commissioner if the dollar volume of a licensee’s outstanding money transmissions does not exceed the surety device filed in accordance with § 12–412 of this subtitle.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, a licensee shall require each authorized delegate, within 48 hours after the next regular business day after the authorized delegate receives the proceeds from a money transmission, to remit the proceeds to the licensee or the licensee’s authorized representative, or deposit the proceeds in the licensee’s account with a financial institution.</text> </level> <level label="2"> <text>A licensee shall require each authorized delegate who sells prepaid access, within 5 business days after the next regular business day after the authorized delegate receives the proceeds from the sale of prepaid access, to:</text> <level label="i"> <text>Remit the proceeds to the licensee or the licensee’s authorized representative; or</text> </level> <level label="ii"> <text>Deposit the proceeds in the licensee’s account with a financial institution.</text> </level> </level> </level> <level label="c"> <text>Deposit by the authorized delegate in an account with a financial institution of funds in advance of money transmissions, but in an amount not less than the amount that the authorized delegate would normally receive from money transmissions, constitutes compliance with this section.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-419" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <text>The original buyer of a payment instrument may request a duplicate of the instrument if the request is:</text> <level label="1"> <text>In writing; and</text> </level> <level label="2"> <text>If required by the licensee, accompanied by:</text> <level label="i"> <text>An affidavit that gives the reason for the request and states the facts relating to the loss of or other failure to produce the original payment instrument; and</text> </level> <level label="ii"> <text>A personal indemnity bond or, if the total amount of the payment instruments for which a duplicate is requested is $150 or more, a lost instrument corporate bond instead of a personal indemnity bond.</text> </level> </level> </level> <level label="b"> <text>Each licensee shall issue or refuse to issue a duplicate payment instrument within 30 days after a request for the duplicate is made under this section.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-420" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <text>Except as permitted by § 17-308.1 of the Commercial Law Article, a licensee or its authorized delegate may charge a service fee, not to exceed $5, to any original buyer who redeems an unused payment instrument.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-421" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <text>If the Commissioner finds that the books, records, and accounting procedures of a licensee are not adequate to enable the Commissioner to determine whether the licensee is in compliance with this subtitle, the Commissioner may require the licensee to have a certified public accountant audit the licensee for any period of time the Commissioner considers necessary or adopt standard, recognized accounting and bookkeeping procedures and records for this purpose.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-422" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <level label="1"> <text>A licensee may surrender a license through NMLS in accordance with the process that the Commissioner requires.</text> </level> <level label="2"> <text>The statement shall provide a listing, by identifying number, face amount, and place of issue, of all outstanding money transmissions, and the reasons for the license surrender.</text> </level> </level> <level label="b"> <text>The surrender of a license does not:</text> <level label="1"> <text>Affect any civil or criminal liability of the licensee for acts committed before the license is surrendered;</text> </level> <level label="2"> <text>Affect the surety device filed by the licensee; or</text> </level> <level label="3"> <text>Entitle the licensee to the return of any part of any fee.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-423" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <text>To discover any violations of this subtitle or to obtain any information required by this subtitle, the Commissioner at any time may investigate the business of:</text> <level label="1"> <text>Any licensee;</text> </level> <level label="2"> <text>Any person who is engaged or participating in the business of money transmission, whether as authorized delegate, principal, agent, or otherwise; and</text> </level> <level label="3"> <text>Any other person who the Commissioner has cause to believe is violating this subtitle or any regulation adopted under this subtitle whether that person claims to be within or beyond the scope of this subtitle.</text> </level> </level> <level label="b"> <text>For the purposes of this section, the Commissioner:</text> <level label="1"> <text>Shall be given access to the place of business, books, papers, records, safes, and vaults of the person under investigation; and</text> </level> <level label="2"> <text>May summon and examine under oath any person whose testimony the Commissioner requires.</text> </level> </level> <level label="c"> <level label="1"> <text>If a person fails to comply with a subpoena or summons of the Commissioner under this subtitle or to testify concerning any matter about which the person may be interrogated under this subtitle, the Commissioner may file a petition for enforcement with the circuit court for any county.</text> </level> <level label="2"> <text>On petition by the Commissioner, the court may order the person to attend and testify or produce evidence.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-424" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <text>The Commissioner may conduct an examination of a licensee or an authorized delegate with not less than 7 business days’ prior notice.</text> </level> <level label="b"> <text>With good cause, the Commissioner may conduct an examination of a licensee or an authorized delegate with no prior notice.</text> </level> <level label="c"> <text>The licensee shall pay all reasonably incurred costs of an examination conducted under this section, including a per–day fee set by the Commissioner for each of the Commissioner’s employees engaged in the examination.</text> </level> <level label="d"> <text>Any examination may be conducted in conjunction with an examination performed by a representative of a responsible supervisory agency of another state.</text> </level> <level label="e"> <level label="1"> <text>The Commissioner, in lieu of an examination, may accept the examination report of a responsible supervisory agency of another state, or a report prepared by an independent accounting firm.</text> </level> <level label="2"> <text>A report accepted under paragraph (1) of this subsection is considered for all purposes as an official report of the Commissioner.</text> </level> </level> <level label="f"> <text>The Commissioner may:</text> <level label="1"> <text>Examine all books, accounts, and records the Commissioner determines are necessary to conduct a complete examination; and</text> </level> <level label="2"> <text>Examine under oath any officer, director, or employee of the licensee, or any other individual who may provide information on behalf of the licensee.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-425" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <text>Each licensee shall make and preserve the following books, accounts, and records for a period of at least 3 years:</text> <level label="1"> <text>A record of each money transmission conducted;</text> </level> <level label="2"> <text>A general ledger containing all assets, liability, capital, income, and expense accounts, which general ledger shall be posted at least monthly;</text> </level> <level label="3"> <text>Settlement sheets received from each authorized delegate;</text> </level> <level label="4"> <text>Bank statements and bank reconciliation records;</text> </level> <level label="5"> <text>Records of outstanding money transmissions;</text> </level> <level label="6"> <text>Records of each money transmission conducted within the 3–year period;</text> </level> <level label="7"> <text>A list of the names and addresses of all the licensee’s authorized delegates, past and present; and</text> </level> <level label="8"> <text>A list of the dates that the training materials required under § 12–413.1 of this subtitle were provided to the licensee’s authorized delegates, agents, and subdelegates.</text> </level> </level> <level label="b"> <text>A licensee shall retain the records required under this section in:</text> <level label="1"> <text>Original form; or</text> </level> <level label="2"> <text>Photographic, electronic, or other similar form.</text> </level> </level> <level label="c"> <text>A licensee may retain the records required under this section at any location, provided that the licensee:</text> <level label="1"> <text>Notifies the Commissioner in writing of the location of the records; and</text> </level> <level label="2"> <text>Makes the records available at a place of business for which a license has been issued, as agreed by the Commissioner and the licensee, within 7 days after a written request for examination by the Commissioner.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-426" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <text>Subject to the hearing provisions of § 12-428 of this subtitle, the Commissioner may suspend or revoke the license of any licensee if:</text> <level label="1"> <text>The licensee or any owner, director, officer, member, coventurer, partner, stockholder, employee, or agent of the licensee:</text> <level label="i"> <text>Makes any material misstatement in an application for a license;</text> </level> <level label="ii"> <text>Conducts the business of money transmission in an unsafe or unsound manner;</text> </level> <level label="iii"> <text>Refuses to permit the Commissioner to make an examination authorized under this subtitle;</text> </level> <level label="iv"> <text>Willfully fails to make a report required under this subtitle;</text> </level> <level label="v"> <text>Is convicted under the laws of the United States or any state of a felony or a misdemeanor that is directly related to the fitness and qualification of the person to engage in the business of money transmission;</text> </level> <level label="vi"> <text>In connection with any money transmission transaction:</text> <level label="1"> <text>Commits a fraud;</text> </level> <level label="2"> <text>Engages in an illegal or dishonest activity; or</text> </level> <level label="3"> <text>Misrepresents or fails to disclose a material fact to a governmental agency;</text> </level> </level> <level label="vii"> <text>Violates any provision of this subtitle or any regulation adopted under this subtitle, or any other law regulating the business of money transmission; or</text> </level> <level label="viii"> <text>Otherwise demonstrates unworthiness, bad faith, dishonesty, or any other quality that indicates that the business of the licensee has not been or will not be conducted honestly, fairly, equitably, and efficiently; or</text> </level> </level> <level label="2"> <text>The licensee:</text> <level label="i"> <text>Has inadequate net worth and the licensee, after 10 days’ written notice from the Commissioner, fails to take steps that the Commissioner deems necessary to remedy the deficiency;</text> </level> <level label="ii"> <text>Becomes insolvent;</text> </level> <level label="iii"> <text>Has suspended payment of its obligations, made an assignment for the benefit of its creditors, or admitted its inability to pay its debts as they become due; or</text> </level> <level label="iv"> <text>Has applied for an adjudication of bankruptcy, reorganization, arrangement, or other relief under any bankruptcy proceeding.</text> </level> </level> </level> <level label="b"> <text>In determining whether a license should be suspended or revoked for a reason identified in subsection (a)(1)(v) of this section, the Commissioner shall consider:</text> <level label="1"> <text>The nature of the crime;</text> </level> <level label="2"> <text>The relationship of the crime to the activities authorized by the license;</text> </level> <level label="3"> <text>With respect to a felony, the relevance of the conviction to the fitness and qualification of the licensee to engage in the business of money transmission;</text> </level> <level label="4"> <text>The length of time since the conviction; and</text> </level> <level label="5"> <text>The behavior and activities of the licensee since the conviction.</text> </level> </level> <level label="c"> <text>Subject to the hearing provisions of § 12-428 of this subtitle, the Commissioner may issue an order to the licensee to terminate its relationship with an authorized delegate if the Commissioner finds that:</text> <level label="1"> <text>The authorized delegate or a director, officer, employee, or person that has control of the authorized delegate:</text> <level label="i"> <text>Has violated any provision of this subtitle or any regulation adopted or order issued under this subtitle;</text> </level> <level label="ii"> <text>Has engaged or participated in an unsafe or unsound act with respect to the business of money transmission;</text> </level> <level label="iii"> <text>Has made or caused to be made in any application or report filed with the Commissioner or in a proceeding before the Commissioner, a statement which was at the time and in the circumstances under which it was made, false or misleading with respect to a material fact, or has omitted to state in an application or report a material fact which is required to be stated; or</text> </level> <level label="iv"> <text>Has failed to cooperate with an examination or investigation by the Commissioner authorized by this subtitle; or</text> </level> </level> <level label="2"> <text>The competence, experience, integrity, financial condition, or overall moral character of the authorized delegate, or a director, officer, employee, or person that has control of the authorized delegate, indicates that it would not be in the interest of the public to permit the person to engage in the business of money transmission.</text> </level> </level> <level label="d"> <level label="1"> <text>The authorized delegate about whom an order is issued under this section may apply to the Commissioner to modify or rescind the order.</text> </level> <level label="2"> <text>The Commissioner may not grant an application filed under paragraph (1) of this subsection unless the Commissioner finds that:</text> <level label="i"> <text>It is in the public interest to modify or rescind the order; and</text> </level> <level label="ii"> <text>It is reasonable to believe that the authorized delegate, if and when permitted to resume acting as an authorized delegate of a licensee, will comply with all applicable provisions of this subtitle and any regulation adopted or order issued under this subtitle.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>The Commissioner may enforce the provisions of this subtitle by issuing an order:</text> <level label="i"> <text>To cease and desist and to take affirmative action from the violation and any further similar violations; and</text> </level> <level label="ii"> <text>Requiring the violator to take affirmative action to correct the violation including the restitution of money or property to any person aggrieved by the violation.</text> </level> </level> <level label="2"> <text>If a violator fails to comply with an order issued under paragraph (1) of this subsection, the Commissioner may impose a civil penalty not exceeding:</text> <level label="i"> <text>$10,000 for the first violation; and</text> </level> <level label="ii"> <text>$25,000 for each subsequent violation from which the violator failed to cease and desist or for which the violator failed to take affirmative action.</text> </level> </level> </level> <level label="f"> <text>The Commissioner may file a petition in the circuit court for any county seeking enforcement of an order issued under this section.</text> </level> <level label="g"> <text>In determining the amount of financial penalty to be imposed under subsection (e) of this section, the Commissioner shall consider the following:</text> <level label="1"> <text>The seriousness of the violation;</text> </level> <level label="2"> <text>The good faith of the violator;</text> </level> <level label="3"> <text>The violator’s history of previous violations;</text> </level> <level label="4"> <text>The deleterious effect of the violation on the public;</text> </level> <level label="5"> <text>The assets of the violator; and</text> </level> <level label="6"> <text>Any other factors relevant to the determination of the financial penalty.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-427" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <text>A money transmitter is subject to the enforcement provisions of §§ 2–114 through 2–116 of this article if the money transmitter:</text> <level label="1"> <text>Is not licensed under this subtitle; or</text> </level> <level label="2"> <text>Is not an authorized delegate of a licensee.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-428" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <text>Before the Commissioner denies an application for a license under § 12-409 of this subtitle or takes any action under § 12-426 of this subtitle, the Commissioner shall give the applicant or licensee an opportunity for a hearing.</text> </level> <level label="b"> <text>Notice of the hearing shall be given and the hearing shall be held in accordance with the Administrative Procedure Act.</text> </level> <level label="c"> <text>For a hearing on the proposed suspension or revocation of a license, the hearing notice to be given to the licensee shall be sent by registered or certified mail at least 15 days before the hearing to the place of business stated in the license.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-429" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <text>The State’s Attorney for the county in which the violation occurs or the Attorney General may prosecute any violation of this subtitle.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-430" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <text>Any person who knowingly and willfully violates any provision of this subtitle is guilty of a felony and on conviction is subject to a fine not exceeding $1,000 for the first violation and not exceeding $5,000 for each subsequent violation or imprisonment not exceeding 5 years or both.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-430.1" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <level label="a"> <level label="1"> <text>Notwithstanding Title 4, Subtitles 1 through 5 of the General Provisions Article, and subject to § 12–408.1 of this subtitle, the Commissioner shall report adjudicated enforcement actions against a money transmitter or its authorized delegate and other relevant information to NMLS.</text> </level> <level label="2"> <text>The Commissioner shall adopt regulations establishing a process by which a licensee or an applicant for a license may challenge information entered by the Commissioner into NMLS.</text> </level> </level> <level label="b"> <text>The Commissioner may submit to NMLS information regarding enforcement actions against money transmitters who are not licensees or authorized delegates.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-431" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="4" subtitle_name="Maryland Money Transmission Act"> <text>This subtitle may be cited as the Maryland Money Transmission Act.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-601" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="6" subtitle_name="Safe-Deposit Companies"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Safe-deposit box” means a locked box or safe that is:</text> <level label="1"> <text>In a vault under the control of a safe-deposit company; and</text> </level> <level label="2"> <text>Used by another person for the storage or safekeeping of property.</text> </level> </level> <level label="c"> <text>“Safe-deposit company” means a person who is engaged in the business of renting safe-deposit boxes to others.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-602" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="6" subtitle_name="Safe-Deposit Companies"> <level label="a"> <text>In this section, “fiduciary” includes the fiduciary’s successor.</text> </level> <level label="b"> <text>Except as provided in subsection (c) of this section, if a safe-deposit company rents a safe-deposit box to a fiduciary, the safe-deposit company may not permit access to the safe-deposit box:</text> <level label="1"> <text>By any person other than the fiduciary; and</text> </level> <level label="2"> <text>If the safe-deposit box is rented to two or more fiduciaries, by less than all of the fiduciaries in person.</text> </level> </level> <level label="c"> <text>The safe-deposit company may permit access to the safe-deposit box by:</text> <level label="1"> <text>Any individual authorized by all of the fiduciaries, in accordance with a rental agreement, written power of attorney, or other written authority signed by each fiduciary and filed with the safe-deposit company; and</text> </level> <level label="2"> <text>Less than all of the fiduciaries, in accordance with a rental agreement, written power of attorney, or other written authority signed by the remaining fiduciaries and filed with the safe-deposit company.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-603" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="6" subtitle_name="Safe-Deposit Companies"> <text>If the lessee of a safe-deposit box dies and, before a personal representative for the lessee’s estate has been appointed, a person wishes to open the safe-deposit box to search for the lessee’s will, a representative of the safe-deposit company shall be present when the safe-deposit box is opened.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-604" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="6" subtitle_name="Safe-Deposit Companies"> <level label="a"> <text>In a contract governing the use of a safe-deposit box by a customer, the safe-deposit company may limit its total liability for any loss resulting from its negligence to a maximum amount, which may not be less than 500 times the annual rental charged for the safe-deposit box.</text> </level> <level label="b"> <text>The safe-deposit company may provide in the contract that it will not be liable for the loss of any money, jewelry, or other items specified in the contract for this purpose.</text> </level> <level label="c"> <text>The safe-deposit company may provide in the contract that the fact that an item was left in a safe-deposit box by a customer and, on a subsequent entry by the customer to the safe-deposit box, the property was missing does not:</text> <level label="1"> <text>Raise a presumption that the property was lost by any negligence or wrongdoing for which the safe-deposit company is responsible; or</text> </level> <level label="2"> <text>Place on the safe-deposit company the burden of proving that the loss was not its fault.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-701" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="7" subtitle_name="Supervision and Examination of Tax Exempt Financial Institutions"> <level label="a"> <text>A financial institution may apply to the Commissioner to be supervised and examined by the Commissioner to the same extent that a banking institution is supervised and examined under Title 5, Subtitle 2 of this article, other than § 5–203, if:</text> <level label="1"> <text>The financial institution is a nonstock corporation under Title 5, Subtitle 2 of the Corporations and Associations Article which is recognized by the Internal Revenue Service as exempt from tax under § 501(c)(3) of the Internal Revenue Code, as amended;</text> </level> <level label="2"> <text>A majority and all controlling members of the financial institution are persons designated and approved by any banking institutions or national banking associations; and</text> </level> <level label="3"> <text>The financial institution is engaged solely in the extension of credit, making of loans and arranging of financing for socially or economically disadvantaged businesses for the purpose of:</text> <level label="i"> <text>Encouraging and supporting the business and commercial development of such businesses; and</text> </level> <level label="ii"> <text>Participating in and supporting special State, federal, local or private industry programs intended to make available, offer, encourage, guarantee, or otherwise facilitate loan and other financing programs for socially or economically disadvantaged businesses.</text> </level> </level> </level> <level label="b"> <text>The Commissioner shall supervise and examine a financial institution that has applied to the Commissioner and has met the requirements set forth under subsection (a) of this section.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-702" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="7" subtitle_name="Supervision and Examination of Tax Exempt Financial Institutions"> <text>To qualify for supervision and examination, the applicant shall satisfy the Commissioner that the applicant:</text> <level label="1"> <text>Is trustworthy and reputable;</text> </level> <level label="2"> <text>Has a good business reputation; and</text> </level> <level label="3"> <text>Has sufficient business experience, moral character, financial responsibility, and genuine fitness to:</text> <level label="i"> <text>Command the confidence of the public; and</text> </level> <level label="ii"> <text>Warrant the belief that the business will be operated lawfully, honestly, fairly and efficiently.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-703" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="7" subtitle_name="Supervision and Examination of Tax Exempt Financial Institutions"> <level label="a"> <level label="1"> <text>To apply for supervision and examination under this subtitle, an applicant shall sign and submit to the Commissioner a verified application on the form that the Commissioner requires.</text> </level> <level label="2"> <text>The applicant shall comply with all conditions and provisions within the application.</text> </level> <level label="3"> <text>The applicant shall submit any other information that the Commissioner may require.</text> </level> </level> <level label="b"> <text>With the application, the applicant shall pay to the Commissioner an investigation fee of $100.00.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-704" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="7" subtitle_name="Supervision and Examination of Tax Exempt Financial Institutions"> <text>Any financial institution supervised and examined under this subtitle shall be subject to the same reporting requirements as a banking institution under Title 5, Subtitle 2 of this article, other than § 5-208.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-705" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="7" subtitle_name="Supervision and Examination of Tax Exempt Financial Institutions"> <level label="a"> <text>If the Commissioner believes that a financial institution supervised and examined under this subtitle has engaged in an unsafe or unsound banking practice, or has failed to comply with the law, the Commissioner shall send a warning to the financial institution.</text> </level> <level label="b"> <text>If the Commissioner finds that the financial institution has continued to engage in the unsafe or unsound practice, or that the failure to comply with the law has continued, subject to the hearing provisions of § 12-706 of this subtitle, the Commissioner may suspend or terminate its supervision and examination of the financial institution.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-706" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="7" subtitle_name="Supervision and Examination of Tax Exempt Financial Institutions"> <level label="a"> <text>If the Commissioner takes any action under § 12-705(b) of this subtitle, the Commissioner shall give the financial institution the opportunity for a hearing.</text> </level> <level label="b"> <text>Notice of the hearing shall be given and a hearing shall be held in accordance with the Administrative Procedure Act.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-707" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="7" subtitle_name="Supervision and Examination of Tax Exempt Financial Institutions"> <text>Any person who is aggrieved by any decision or finding of the Commissioner under this subtitle may appeal to the circuit court for the county in which the aggrieved person resides or has a principal place of business, or, if the aggrieved person resides or has a principal place of business in Baltimore City, to the Circuit Court for Baltimore City.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-708" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="7" subtitle_name="Supervision and Examination of Tax Exempt Financial Institutions"> <level label="a"> <text>The Commissioner, not more often than once per year, may impose annual assessments on each financial institution supervised and examined by the Commissioner under this subtitle, to cover the expense of supervising and examining that financial institution.</text> </level> <level label="b"> <level label="1"> <text>The Commissioner may assess each financial institution the sum of:</text> <level label="i"> <text>$1,000; plus</text> </level> <level label="ii"> <text>8 cents for each $1,000 of the assets of the financial institution over $1,000,000.</text> </level> </level> <level label="2"> <text>The assessments shall be based on assets stated in the financial institution’s most recent financial report.</text> </level> </level> <level label="c"> <text>The financial institution shall pay any assessment imposed under this section to the Commissioner on or before the February 1 after it is imposed.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-709" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="7" subtitle_name="Supervision and Examination of Tax Exempt Financial Institutions"> <text>The Commissioner may adopt regulations to carry out the provisions of this subtitle.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-801" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="8" subtitle_name="Currency Transactions"> <text>It is the purpose of this subtitle to require certain reports and records of transactions involving currency where the reports and records have a high degree of usefulness in criminal investigations or proceedings which pertain to the subject of the report.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-802" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="8" subtitle_name="Currency Transactions"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Currency” means currency and coin of the United States or any other country.</text> </level> <level label="c"> <text>“Department” means the Maryland Department of Labor.</text> </level> <level label="d"> <level label="1"> <text>“Financial institution” means:</text> <level label="i"> <text>A national banking association;</text> </level> <level label="ii"> <text>A State banking institution;</text> </level> <level label="iii"> <text>A credit union that is organized under the laws of this State or of the United States;</text> </level> <level label="iv"> <text>Any other organization that is organized under the banking laws of the State and subject to the supervision of the Commissioner;</text> </level> <level label="v"> <text>A savings and loan association that is organized under the laws of the State or of the United States; or</text> </level> <level label="vi"> <text>Persons engaged in the business of cashing checks for a fee unless performed incidental to the sale of goods or services.</text> </level> </level> <level label="2"> <text>“Financial institution” does not include any person licensed by the Commissioner under Title 11 of this article.</text> </level> </level> <level label="e"> <text>“Person” means an individual, partnership, firm, trust, estate, association, corporation, or other entity.</text> </level> <level label="f"> <text>“Secretary” means the Secretary of Labor.</text> </level> <level label="g"> <text>“Transaction” includes the deposit, withdrawal, transfer, bailment, loan, pledge payment, or exchange of currency by, through, or to the financial institution.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-803" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="8" subtitle_name="Currency Transactions"> <level label="a"> <text>A financial institution shall keep a record of currency transactions in excess of $10,000 and shall file with the Department within 15 days of the date of the transaction pursuant to regulations adopted by the Secretary a complete report of currency transactions in excess of $10,000.</text> </level> <level label="b"> <text>The reporting requirements of this section are complied with if:</text> <level label="1"> <text>A financial institution files with the Department a duplicate copy of the report required by 31 U.S.C. § 5313; or</text> </level> <level label="2"> <text>The information in the report required by 31 U.S.C. § 5313 is available to the Department from a federal agency.</text> </level> </level> <level label="c"> <text>The Secretary shall adopt regulations to carry out the purposes of this subtitle and to provide for the exemption of transactions which are clearly of a legitimate nature and for which mandatory reporting would serve no useful purpose.</text> </level> <level label="d"> <text>A transaction that is exempt from reporting by a financial institution under federal law is also exempt from the reporting requirements of this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-804" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="8" subtitle_name="Currency Transactions"> <level label="a"> <text>The Department of Public Safety and Correctional Services and the Office of the Attorney General shall have access to and shall be authorized to inspect and copy any reports filed with the Department under this article.</text> </level> <level label="b"> <text>The Department may make the contents of a report available to other criminal justice agencies only for purposes of investigation or prosecution of the subject of the report.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-805" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="8" subtitle_name="Currency Transactions"> <level label="a"> <text>The Secretary may assess a civil penalty against any financial institution and any officer, employee, agent, or director of the institution for each knowing and willful violation of this subtitle.</text> </level> <level label="b"> <level label="1"> <text>The civil penalty may not exceed $50 for each day the violation continues.</text> </level> <level label="2"> <text>For purposes of this section, a separate violation occurs at each office, branch, or place of business where a violation occurs or continues.</text> </level> <level label="3"> <text>The total civil penalty may not exceed $1,000.</text> </level> </level> <level label="c"> <text>In the event of the failure of any person to pay any penalty assessed under this section, a civil action for recovery of the penalty may be brought by the State against the person.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-806" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="8" subtitle_name="Currency Transactions"> <text>If the information required by § 12-803(a) of this subtitle has been available to the Department from a federal agency, a financial institution may not be subject to the civil penalties provided for in this subtitle unless the financial institution has been notified by the Department that:</text> <level label="1"> <text>The information is no longer available; and</text> </level> <level label="2"> <text>The financial institution is now required to provide the information to the Department.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-901" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Annual gross revenue” means income or revenue from all sources, before any expenses or taxes, computed according to generally accepted accounting principles for the preceding fiscal year.</text> </level> <level label="c"> <text>“Consultation fee” means a fee paid by a consumer to a debt management services provider in connection with the processing of any application that the consumer makes for debt management services.</text> </level> <level label="d"> <text>“Consumer” means an individual who:</text> <level label="1"> <text>Resides in the State; and</text> </level> <level label="2"> <text>Is seeking debt management services or has entered into a debt management services agreement.</text> </level> </level> <level label="e"> <text>“Consumer education program” means a program or plan that:</text> <level label="1"> <text>Seeks to improve the financial literacy of consumers regarding personal finance, budgeting, and credit and debt management; and</text> </level> <level label="2"> <text>Provides counseling tailored to the needs and circumstances of the consumer with regard to options and strategies for addressing the consumer’s debt problems, including:</text> <level label="i"> <text>Creating and maintaining a budget;</text> </level> <level label="ii"> <text>Establishing debt management payment plans with creditors;</text> </level> <level label="iii"> <text>Negotiating directly with creditors on payment or interest rate relief; and</text> </level> <level label="iv"> <text>Filing for bankruptcy.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>“Control person” means a person who has the power, directly or indirectly, to direct the management or policies of a licensee or license applicant, whether through ownership of securities, by contract, or otherwise.</text> </level> <level label="2"> <text>“Control person” includes a person who:</text> <level label="i"> <text>Is a general partner, an officer, or a director of a licensee or license applicant, or a member that occupies a similar position or performs a similar function;</text> </level> <level label="ii"> <text>Directly or indirectly has the right to vote 10% or more of a class of voting securities, or has the power to sell or direct the sale of 10% or more of a class of voting securities, of a licensee or license applicant; or</text> </level> <level label="iii"> <text>In the case of a partnership, a limited partnership, a limited liability partnership, a limited liability company, or any other business entity:</text> <level label="1"> <text>Has the right to receive on liquidation or dissolution of a licensee or license applicant 10% or more of the capital of the licensee or license applicant; or</text> </level> <level label="2"> <text>Has contributed 10% or more of the capital of a licensee or license applicant.</text> </level> </level> </level> </level> <level label="g"> <text>“Debt management counselor” means a permanent, temporary, or contractual employee of a debt management services provider or its agent who provides counseling to consumers on behalf of the debt management services provider.</text> </level> <level label="h"> <text>“Debt management services” means receiving funds periodically from a consumer under an agreement with the consumer for the purpose of distributing the funds among the consumer’s creditors in full or partial payment of the consumer’s debts.</text> </level> <level label="i"> <text>“Debt management services agreement” means a written contract, plan, or agreement between a debt management services provider and a consumer for the performance of debt management services.</text> </level> <level label="j"> <text>“Debt management services provider” means a person that provides or offers to provide debt management services to a consumer.</text> </level> <level label="k"> <text>“License” means a license issued in any form by the Commissioner under this subtitle to provide debt management services, including as provided for through NMLS.</text> </level> <level label="l"> <text>“Licensed location” means any location listed by the licensee in NMLS in accordance with this subtitle.</text> </level> <level label="m"> <text>“Licensed name” means:</text> <level label="1"> <text>The licensee’s legal name; and</text> </level> <level label="2"> <text>Any trade name used by the licensee in accordance with § 2–121 of this article.</text> </level> </level> <level label="n"> <text>“Licensee” means a person licensed under this subtitle to provide debt management services.</text> </level> <level label="o"> <text>“Maintenance fee” means a fee paid by a consumer to a debt management services provider for the maintenance or servicing of the consumer’s accounts with the consumer’s creditors in accordance with a debt management services agreement.</text> </level> <level label="p"> <text>“Relative” means any of the following who are related to an individual by blood, marriage, or adoption:</text> <level label="1"> <text>A spouse;</text> </level> <level label="2"> <text>A child;</text> </level> <level label="3"> <text>A sibling;</text> </level> <level label="4"> <text>A parent;</text> </level> <level label="5"> <text>A grandparent;</text> </level> <level label="6"> <text>A grandchild;</text> </level> <level label="7"> <text>A stepparent;</text> </level> <level label="8"> <text>A stepchild;</text> </level> <level label="9"> <text>A stepsibling;</text> </level> <level label="10"> <text>An aunt; or</text> </level> <level label="11"> <text>An uncle.</text> </level> </level> <level label="q"> <text>“Resident agent” means an individual residing in the State or a Maryland corporation whose name, address, and designation as a resident agent are filed or recorded with the State Department of Assessments and Taxation in accordance with the Corporations and Associations Article.</text> </level> <level label="r"> <text>“Trust account” means an account that is:</text> <level label="1"> <text>Established in a financial institution that is federally insured;</text> </level> <level label="2"> <text>Separate from the debt management services provider’s operating account;</text> </level> <level label="3"> <text>Designated as a “trust account” or by another appropriate designation indicating that the funds in the account are not the funds of the licensee or its officers, employees, or agents;</text> </level> <level label="4"> <text>Unavailable to creditors of the debt management services provider; and</text> </level> <level label="5"> <text>Used to hold funds paid by consumers to a debt management services provider for disbursement to creditors of the consumers.</text> </level> </level> <level label="s"> <text>“Unique identifier” means a number or another identifier assigned by NMLS.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-902" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <text>This subtitle does not apply to:</text> <level label="1"> <text>The following persons when engaged in the regular course of their respective businesses and professions:</text> <level label="i"> <text>An attorney at law;</text> </level> <level label="ii"> <text>An escrow agent;</text> </level> <level label="iii"> <text>A certified public accountant;</text> </level> <level label="iv"> <text>A banking institution, other-state bank, national banking association, credit union, or savings and loan association;</text> </level> <level label="v"> <text>A person that:</text> <level label="1"> <text>Provides bill payer services, as defined in § 12-401 of this title;</text> </level> <level label="2"> <text>Does not initiate any contract with individual creditors of the debtor to compromise a debt or arrange a new payment schedule; and</text> </level> <level label="3"> <text>Does not provide any debt counseling services;</text> </level> </level> <level label="vi"> <text>A person that provides accelerated mortgage payment services, as defined in § 12-401 of this title;</text> </level> <level label="vii"> <text>A title insurer, title insurance agency, or abstract company; or</text> </level> <level label="viii"> <text>A judicial officer or a person acting under a court order;</text> </level> </level> <level label="2"> <text>A person while performing services incidental to the dissolution, winding up, or liquidation of a partnership, corporation, or other business enterprise;</text> </level> <level label="3"> <text>A trade or mercantile association acting in the course of arranging the adjustment of debts with a business establishment; or</text> </level> <level label="4"> <text>A mortgage lender, as defined in § 11-501 of this article, that:</text> <level label="i"> <text>Is licensed by the Commissioner; and</text> </level> <level label="ii"> <text>Does not receive funds from a consumer for the purpose of distributing the funds among the consumer’s creditors in full or partial payment of the consumer’s debts.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-904" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <text>With the license application, the applicant shall pay to the Commissioner:</text> <level label="1"> <text>A nonrefundable investigation fee of $1,000 for an initial license; and</text> </level> <level label="2"> <text>A license fee for an initial license or a license renewal for an additional 1–year term, as follows:</text> <level label="i"> <text>$500, if the applicant’s annual gross revenue is not more than $3,000,000;</text> </level> <level label="ii"> <text>$1,000, if the applicant’s annual gross revenue is more than $3,000,000 but not more than $6,000,000;</text> </level> <level label="iii"> <text>$2,000, if the applicant’s annual gross revenue is more than $6,000,000 but not more than $15,000,000;</text> </level> <level label="iv"> <text>$3,000, if the applicant’s annual gross revenue is more than $15,000,000 but not more than $30,000,000; or</text> </level> <level label="v"> <text>$4,000, if the applicant’s annual gross revenue is more than $30,000,000.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-905" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>All revenue received for the licensing and assessment of persons under this subtitle and, except as provided in subsection (b) of this section, any other fee, examination assessment, or revenue received by the Commissioner under this subtitle shall be:</text> <level label="1"> <text>Credited to the Non–Depository Special Fund established under § 2–120 of this article; and</text> </level> <level label="2"> <text>Used in accordance with § 2–120(d) of this article.</text> </level> </level> <level label="b"> <text>Notwithstanding subsection (a) of this section, the Commissioner shall pay all fines and penalties collected by the Commissioner under this subtitle into the General Fund of the State.</text> </level> <level label="c"> <text>Subject to § 2–120(h) of this article, the Commissioner may impose an annual assessment on any licensee under this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-906" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>Whether or not the person maintains an office in this State, a person may not provide debt management services to consumers unless the person:</text> <level label="1"> <text>Is licensed by the Commissioner under this subtitle; or</text> </level> <level label="2"> <text>Is exempt from licensing under this subtitle.</text> </level> </level> <level label="b"> <text>A licensee may do business as a debt management services provider only at a licensed location or as otherwise authorized by the Commissioner through regulation.</text> </level> <level label="c"> <text>During the time period established by the Commissioner under subsection (d) of this section, each licensee shall:</text> <level label="1"> <text>Obtain and maintain a valid unique identifier issued by NMLS when an account is created with NMLS;</text> </level> <level label="2"> <text>Transfer licensing information to NMLS; and</text> </level> <level label="3"> <text>Pay to the Commissioner a license extension fee calculated in accordance with subsection (d)(5) of this section.</text> </level> </level> <level label="d"> <level label="1"> <text>The Commissioner shall establish a time period that is not less than 2 months within which a licensee must transfer licensing information to NMLS.</text> </level> <level label="2"> <text>The time period that the Commissioner establishes under this subsection shall begin on or after July 1, 2017.</text> </level> <level label="3"> <text>At least 30 days before the transfer period begins, the Commissioner shall:</text> <level label="i"> <text>Notify all licensees of the transfer period; and</text> </level> <level label="ii"> <text>Provide instructions for the transfer of licensing information to NMLS.</text> </level> </level> <level label="4"> <text>For each licensee that complies with subsection (c) of this section, the term of the licensee’s license shall extend to December 31 of the year in which the license otherwise would have expired.</text> </level> <level label="5"> <text>The license extension fee required under subsection (c)(3) of this section is nonrefundable and, based on the annual license fee, shall be prorated to the number of days between the date the license otherwise would have expired and December 31 of the same year.</text> </level> </level> <level label="e"> <text>Subject to subsection (c) of this section, an applicant for an initial license or a license renewal shall apply for the initial license or license renewal through NMLS:</text> <level label="1"> <text>On or after July 1, 2017; or</text> </level> <level label="2"> <text>If the Commissioner has not joined NMLS with respect to persons required to be licensed under this subtitle as of July 1, 2017, on or after the date that the Commissioner joins, as specified by the Commissioner by public notice.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-907" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>To qualify for a license, an applicant shall satisfy the Commissioner that:</text> <level label="1"> <text>The applicant and each of the owners, officers, directors, and principals of the applicant has sufficient experience, character, financial responsibility, and general fitness to:</text> <level label="i"> <text>Engage in the business of providing debt management services;</text> </level> <level label="ii"> <text>Warrant the belief that the debt management services business will be conducted lawfully, honestly, fairly, and efficiently; and</text> </level> <level label="iii"> <text>Command the confidence of the public;</text> </level> </level> <level label="2"> <text>Each agent acting on behalf of the applicant to manage a trust account required under § 12–917 of this subtitle has sufficient experience, character, financial responsibility, and general fitness to:</text> <level label="i"> <text>Engage in the business of managing a trust account;</text> </level> <level label="ii"> <text>Warrant the belief that the management of the trust account will be conducted lawfully, honestly, fairly, and efficiently; and</text> </level> <level label="iii"> <text>Command the confidence of the public;</text> </level> </level> <level label="3"> <text>The applicant has a net worth computed according to generally accepted accounting principles of at least $50,000, plus an additional net worth of $10,000 for each location at which debt management services will be provided to consumers, up to a maximum of $500,000 as provided in subsection (b) of this section; and</text> </level> <level label="4"> <text>Before providing counseling to a consumer, each debt management counselor employed by the applicant or the applicant’s agent will receive comprehensive training in counseling skills, personal finance, budgeting, and credit and debt management.</text> </level> </level> <level label="b"> <text>The Commissioner may require a net worth of up to $500,000, subject to a consideration of the following:</text> <level label="1"> <text>The nature and volume of the business or proposed business of the applicant;</text> </level> <level label="2"> <text>The amount, nature, quality, and liquidity of the assets of the applicant;</text> </level> <level label="3"> <text>The amount and nature of the liabilities, including contingent liabilities, of the applicant;</text> </level> <level label="4"> <text>The history of and prospects for the applicant to earn and retain income;</text> </level> <level label="5"> <text>The quality of the operations of the applicant;</text> </level> <level label="6"> <text>The quality of the management of the applicant;</text> </level> <level label="7"> <text>The nature and quality of the person that has control of the applicant; and</text> </level> <level label="8"> <text>Any other factor that the Commissioner considers relevant.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-908" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>To apply for a license, an applicant shall:</text> <level label="1"> <text>Complete, sign, and submit to the Commissioner an application made under oath in the form, and in accordance with the process, that the Commissioner requires; and</text> </level> <level label="2"> <text>Provide all the information that the Commissioner requests.</text> </level> </level> <level label="b"> <text>The application shall include:</text> <level label="1"> <text>The applicant’s legal name and any trade name used by the applicant in accordance with § 2–121 of this article, the applicant’s principal executive office address, and website address, if any, and, if the applicant is not an individual, the name and residence address of each control person, if any;</text> </level> <level label="2"> <text>The address of each additional location, if any, that:</text> <level label="i"> <text>The general public may reasonably view as a location that does business as a debt management services provider, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;</text> </level> <level label="ii"> <text>Houses any core operational infrastructure or technology systems;</text> </level> <level label="iii"> <text>Conducts any core management, information security and technology, risk and compliance, or finance functions; or</text> </level> <level label="iv"> <text>Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle;</text> </level> </level> <level label="3"> <text>The name and address of each owner, officer, director, and principal of the applicant who is not a control person;</text> </level> <level label="4"> <text>The name, address, and telephone number of the applicant’s resident agent in the State;</text> </level> <level label="5"> <text>A description of the ownership interest of any officer, director, agent, or employee of the applicant in any affiliate or subsidiary of the applicant or in any other business entity that provides any service to the applicant or any consumer relating to the applicant’s debt management services business;</text> </level> <level label="6"> <text>The name and address of any agent acting on behalf of the applicant to manage a trust account required under § 12–917 of this subtitle;</text> </level> <level label="7"> <text>The applicant’s federal employer identification number;</text> </level> <level label="8"> <text>A list of any state in which:</text> <level label="i"> <text>The applicant engages in the business of providing debt management services;</text> </level> <level label="ii"> <text>The applicant is registered or licensed to provide debt management services; and</text> </level> <level label="iii"> <text>The applicant’s registration or license has been suspended or revoked;</text> </level> </level> <level label="9"> <text>A statement of whether any pending judgment, tax lien, material litigation, or administrative action by any government agency exists against the applicant;</text> </level> <level label="10"> <text>The most recent, unconsolidated financial statement of the applicant that:</text> <level label="i"> <text>Is prepared in accordance with generally accepted accounting principles applied on a consistent basis;</text> </level> <level label="ii"> <text>Includes a certified opinion audit prepared by an independent certified public accountant; and</text> </level> <level label="iii"> <text>Was prepared no more than 12 months before the date of application;</text> </level> </level> <level label="11"> <text>If applicable, evidence of nonprofit status under § 501(c) of the Internal Revenue Code;</text> </level> <level label="12"> <text>If the applicant is a corporation, a detailed description of the applicant’s corporate structure, including parent companies, subsidiaries, and affiliates;</text> </level> <level label="13"> <text>The applicant’s business credit report;</text> </level> <level label="14"> <text>Evidence of general liability or fidelity insurance that insures against dishonesty, fraud, theft, or other malfeasance on the part of an employee of the applicant;</text> </level> <level label="15"> <text>A description of the applicant’s consumer education program that is provided to consumers;</text> </level> <level label="16"> <text>A description of the applicant’s financial analysis and initial budget plan, including any form or electronic model, that are used to evaluate the financial condition of consumers;</text> </level> <level label="17"> <text>A copy of the debt management services agreement that the applicant will use in its debt management services business;</text> </level> <level label="18"> <text>A copy of the applicant’s plan to ensure that each debt management counselor is certified by an independent organization within 6 months after the debt management counselor is hired, and that any employee who is a supervisor or manager of a debt management counselor is certified by an independent organization within 3 months after the employee is hired;</text> </level> <level label="19"> <text>The most recent financial statement of each affiliate, subsidiary, or other person that provides services related to debt management services for the applicant or for any consumer;</text> </level> <level label="20"> <text>A copy of each contract or fee–for–service arrangement between the applicant and any person that provides services related to the debt management services business;</text> </level> <level label="21"> <text>A surety bond as required under § 12–914 of this subtitle; and</text> </level> <level label="22"> <text>Any other information that the Commissioner reasonably requires.</text> </level> </level> <level label="c"> <text>The Commissioner may refuse an application if it contains erroneous or incomplete information.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-909" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>In connection with an initial application, a renewal application, and at any other time the Commissioner requests, an applicant or licensee shall provide fingerprints to NMLS for use by the Federal Bureau of Investigation to conduct criminal history records checks.</text> </level> <level label="b"> <text>An applicant or licensee required to provide fingerprints under this section shall pay any processing or other required fee.</text> </level> <level label="c"> <text>If the applicant or licensee is a corporation, the fingerprinting and criminal history records check requirements shall apply to the president and any other officer, director, principal, or owner of the corporation as required by the Commissioner.</text> </level> <level label="d"> <text>Any agent acting on behalf of a licensee to manage a trust account required under § 12–917 of this subtitle, and any agent of the licensee who has access to the account, shall provide to NMLS fingerprints for use by the Federal Bureau of Investigation to conduct criminal history records checks.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-910" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>After an applicant for a license files a complete application, files a surety bond, and pays the license and investigation fees required under this subtitle, the Commissioner shall investigate the facts relevant to the application to determine if the applicant meets the requirements of this subtitle.</text> </level> <level label="b"> <text>Unless the Commissioner notifies an applicant that a different time period is necessary, the Commissioner shall approve or deny each application for a license within 60 days after the date on which the complete application is filed, the surety bond is filed, and the fees are paid.</text> </level> <level label="c"> <text>The Commissioner shall issue a license to any applicant that meets the requirements of this subtitle.</text> </level> <level label="d"> <level label="1"> <text>If an applicant does not meet the requirements of this subtitle, the Commissioner:</text> <level label="i"> <text>Subject to the hearing provisions of § 12–927 of this subtitle, shall deny the application;</text> </level> <level label="ii"> <text>Shall notify the applicant immediately of the denial;</text> </level> <level label="iii"> <text>Shall refund the license fee; and</text> </level> <level label="iv"> <text>Shall keep the investigation fee.</text> </level> </level> <level label="2"> <level label="i"> <text>Within 30 days after the Commissioner denies an application, the Commissioner shall send a written notice to the applicant stating the reasons for the denial.</text> </level> <level label="ii"> <text>The notice shall be sent by United States mail, e–mail, or any means provided through NMLS to the address listed in the application.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-911" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>Information in NMLS associated with a license approved by the Commissioner under this subtitle shall include the following:</text> <level label="1"> <text>The licensee’s legal name and any trade name used by the licensee in accordance with § 2–121 of this article;</text> </level> <level label="2"> <text>The address of the licensee’s principal executive office; and</text> </level> <level label="3"> <text>The address of each additional location, if any, where the licensee does business and that:</text> <level label="i"> <text>The general public may reasonably view as a location that does business as a debt management services provider, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing;</text> </level> <level label="ii"> <text>Houses any core operational infrastructure or technology systems;</text> </level> <level label="iii"> <text>Conducts any core management, information security and technology, risk and compliance, or finance functions; or</text> </level> <level label="iv"> <text>Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle.</text> </level> </level> </level> <level label="b"> <text>A licensee shall maintain and update the information in NMLS associated with the licensee’s license to reflect accurately at all times the information required by subsection (a) of this section.</text> </level> <level label="c"> <text>The unique identifier assigned by NMLS to a licensee shall constitute the licensee’s license number.</text> </level> <level label="d"> <text>A license authorizes the licensee to do business under the license at any licensed location and under any licensed name, or as otherwise authorized by the Commissioner through regulation.</text> </level> <level label="e"> <text>A license may not be transferred, assigned, or pledged.</text> </level> <level label="f"> <text>Each licensee shall conspicuously post, in 48 point or larger type, at each licensed location the following information:</text> <level label="1"> <text>The licensee’s unique identifier; and</text> </level> <level label="2"> <text>A statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee.</text> </level> </level> <level label="g"> <text>Each licensee shall conspicuously display the following information on the licensee’s website, any software application accessible to the public and used to provide debt management services, and profile page within each social media platform the licensee uses:</text> <level label="1"> <text>The licensee’s unique identifier;</text> </level> <level label="2"> <text>A link to the NMLS Consumer Access website; and</text> </level> <level label="3"> <text>A notice stating, “The Commissioner of Financial Regulation for the State of Maryland will accept any questions and complaints from Maryland residents regarding (name and unique identifier of the debt management services provider) at (address of Commissioner), phone (toll–free number of the Commissioner)”.</text> </level> </level> <level label="h"> <text>A licensee is not required to post the information required in subsection (f) of this section at a licensed location if the licensee does not regularly grant access to that licensed location to members of the general public.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-912" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>An initial license term shall:</text> <level label="1"> <text>Begin on the date the license is issued; and</text> </level> <level label="2"> <text>Expire on December 31 of the year:</text> <level label="i"> <text>In which the license is issued, if the license is issued before November 1; or</text> </level> <level label="ii"> <text>Immediately following the year that the license is issued, if the license is issued on or after November 1.</text> </level> </level> </level> <level label="b"> <text>On or after November 1 of the year in which a license expires, the license may be renewed for an additional 1–year term if the licensee:</text> <level label="1"> <text>Otherwise is entitled to be licensed;</text> </level> <level label="2"> <text>Pays to the Commissioner the renewal fee established under § 12–904 of this subtitle;</text> </level> <level label="3"> <text>Files with the Commissioner a surety bond renewal certificate or a new surety bond required under § 12–914 of this subtitle; and</text> </level> <level label="4"> <text>Submits to the Commissioner a renewal application in the form, and in accordance with the process, that the Commissioner requires.</text> </level> </level> <level label="c"> <text>To the extent required or permitted by NMLS, the Commissioner may determine that licenses issued under this subtitle shall expire on a staggered basis.</text> </level> <level label="d"> <text>A licensee may not renew a license unless, before the submission of the license renewal application, the licensee has transferred the licensee’s licensing information to NMLS in accordance with § 12–906(c) of this subtitle.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-913" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <level label="1"> <text>A licensee may surrender a license through NMLS in accordance with the process that the Commissioner requires.</text> </level> <level label="2"> <text>With the surrender of a license, a licensee shall provide:</text> <level label="i"> <text>The reason for the license surrender;</text> </level> <level label="ii"> <text>For each consumer for whom the licensee is providing debt management services, the following information:</text> <level label="1"> <text>The name of the consumer;</text> </level> <level label="2"> <text>The total amount of funds held by the licensee for distribution to the consumer’s creditors; and</text> </level> <level label="3"> <text>The name of each creditor of the consumer that is receiving payments from the licensee for debts owed by the consumer to the creditor, and the outstanding balance owed to each creditor.</text> </level> </level> </level> </level> <level label="b"> <text>The surrender of a license does not:</text> <level label="1"> <text>Affect any administrative, civil, or criminal liability of the licensee for acts committed before the license is surrendered;</text> </level> <level label="2"> <text>Affect the surety bond required under § 12–914 of this subtitle; or</text> </level> <level label="3"> <text>Entitle the licensee to the return of any fee paid to the Commissioner under § 12–904 of this subtitle.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-914" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>With the application for a new license, an applicant shall file a surety bond with the Commissioner.</text> </level> <level label="b"> <level label="1"> <text>The bond shall run to the Commissioner, as obligee, for the benefit of:</text> <level label="i"> <text>The State; and</text> </level> <level label="ii"> <text>Any consumer who is injured by a violation of this subtitle or a regulation adopted under this subtitle committed by a licensee or an agent of a licensee, including an agent managing a trust account.</text> </level> </level> <level label="2"> <text>The bond shall be:</text> <level label="i"> <text>In an amount determined by the Commissioner under subsection (f) of this section;</text> </level> <level label="ii"> <text>Issued by a surety company that:</text> <level label="1"> <text>Is authorized to do business in the State; and</text> </level> <level label="2"> <text>Holds a certificate of authority issued by the Maryland Insurance Commissioner; and</text> </level> </level> <level label="iii"> <text>Conditioned that the licensee and its agent shall comply with all State and federal laws and regulations governing the business of providing debt management services.</text> </level> </level> <level label="3"> <text>The liability of the surety:</text> <level label="i"> <text>Shall be continuous;</text> </level> <level label="ii"> <text>May not be aggregated or cumulative, whether or not the bond is renewed, continued, replaced, or modified;</text> </level> <level label="iii"> <text>May not be determined by adding together the penal sum of the bond, or any part of the penal sum of the bond, in existence at any two or more points in time;</text> </level> <level label="iv"> <text>Shall be considered to be one continuous obligation, regardless of increases or decreases in the penal sum of the bond;</text> </level> <level label="v"> <text>May not be affected by:</text> <level label="1"> <text>The insolvency or bankruptcy of the licensee or its agent;</text> </level> <level label="2"> <text>Any misrepresentation, breach of warranty, failure to pay a premium, or any other act or omission of the licensee or its agent; or</text> </level> <level label="3"> <text>The suspension of the licensee’s license;</text> </level> </level> <level label="vi"> <text>May not require an administrative enforcement action by the Commissioner as a prerequisite to liability; and</text> </level> <level label="vii"> <text>Shall continue for 3 years after the later of the date on which:</text> <level label="1"> <text>The bond is canceled; or</text> </level> <level label="2"> <text>The licensee, for any reason, ceases to be licensed.</text> </level> </level> </level> <level label="4"> <level label="i"> <text>A bond may be canceled by the surety or the licensee by giving notice of cancellation to the Commissioner.</text> </level> <level label="ii"> <text>Notice under subparagraph (i) of this paragraph shall:</text> <level label="1"> <text>Be in writing; and</text> </level> <level label="2"> <text>Be sent by certified mail, return receipt requested.</text> </level> </level> <level label="iii"> <text>A cancellation of a bond under this paragraph is not effective until 90 days after receipt of a notice of cancellation by the Commissioner.</text> </level> </level> <level label="5"> <text>A claim against the bond may be filed with the surety by:</text> <level label="i"> <text>A claimant; or</text> </level> <level label="ii"> <text>The Commissioner for the benefit of a claimant or the State.</text> </level> </level> <level label="6"> <text>If the amount of claims under a bond exceeds the amount of the bond, the surety:</text> <level label="i"> <text>Shall pay the amount of the bond to the Commissioner for pro rata distribution to claimants; and</text> </level> <level label="ii"> <text>Is relieved of liability under the bond.</text> </level> </level> <level label="7"> <text>The Commissioner may allow the amount of the surety bond to be reduced if the amount of the licensee’s outstanding debt management services liabilities in the State is reduced.</text> </level> </level> <level label="c"> <text>If the penal amount of a surety bond is reduced by payment of a claim or judgment, the licensee shall file with the Commissioner any new or additional surety bond in the amount that the Commissioner sets.</text> </level> <level label="d"> <text>The Commissioner may waive the surety bond requirement under this section if the Commissioner determines that the volume of debt management services provided by the applicant or licensee does not warrant the need for a surety bond.</text> </level> <level label="e"> <text>A penalty imposed against a licensee under § 12–928 or § 12–929 of this subtitle may be collected and paid from the proceeds of a surety bond required under this section.</text> </level> <level label="f"> <level label="1"> <text>The amount of the surety bond under subsection (b) of this section shall be in an amount of not less than $10,000 and not more than $1,000,000, as determined by the Commissioner for each licensee.</text> </level> <level label="2"> <text>In setting the amount of the surety bond, the Commissioner may consider:</text> <level label="i"> <text>The nature and volume of the business or proposed business of the licensee or applicant;</text> </level> <level label="ii"> <text>The financial condition of the licensee or applicant, including:</text> <level label="1"> <text>The amount, nature, quality, and liquidity of the assets of the licensee or applicant;</text> </level> <level label="2"> <text>The amount and nature of the liabilities, including contingent liabilities, of the licensee or applicant;</text> </level> <level label="3"> <text>The history of and prospects for the licensee or applicant to earn and retain income; and</text> </level> <level label="4"> <text>The potential harm to consumers if the applicant or licensee becomes financially impaired;</text> </level> </level> <level label="iii"> <text>The quality of the operations of the licensee or applicant;</text> </level> <level label="iv"> <text>The quality of the management of the licensee or applicant;</text> </level> <level label="v"> <text>The nature and quality of the person that has control of the licensee or applicant; and</text> </level> <level label="vi"> <text>Any other factor that the Commissioner considers relevant.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-915" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <level label="1"> <text>Except for a change of a licensed location made in compliance with subsection (d) of this section, a licensee shall update through NMLS any change in the information required to be included in the licensee’s application under § 12–908(b)(1) of this subtitle at least 30 days before the change is effective.</text> </level> <level label="2"> <text>The licensee shall ensure that, after the change described in this subsection, the licensee will continue to satisfy the surety bond requirement under § 12–914 of this subtitle.</text> </level> </level> <level label="b"> <text>Unless approved by the Commissioner through NMLS, a licensee may not change a control person of the licensee, or an agent who is acting on behalf of the licensee to manage a trust account, listed on the licensee’s application under § 12–908(b)(3) and (6) of this subtitle.</text> </level> <level label="c"> <level label="1"> <text>To request approval of a proposed change described in subsection (b) of this section, the licensee shall notify the Commissioner through NMLS of the proposed change and submit any information that the Commissioner requires.</text> </level> <level label="2"> <text>For a proposed change in owner or agent acting on behalf of the licensee to manage a trust account, the Commissioner may determine that the filing of a new application for the issuance of a license is warranted.</text> </level> <level label="3"> <text>Unless the Commissioner notifies the licensee that a different time period is necessary, the Commissioner shall approve or deny a request for a change described in subsection (b) of this section within 60 days after the date the Commissioner receives all information required under paragraph (1) of this subsection.</text> </level> </level> <level label="d"> <level label="1"> <text>A licensee may not add, delete, or modify a location required to be listed in NMLS under § 12–911(a)(2) or (3) of this subtitle unless:</text> <level label="i"> <text>The licensee provides to the Commissioner, through NMLS and in accordance with any regulations the Commissioner adopts, notice of the addition, deletion, or modification;</text> </level> <level label="ii"> <text>The addition, deletion, or modification of the location is recorded with the information associated with the licensee’s license in NMLS; and</text> </level> <level label="iii"> <text>The addition, deletion, or modification of the location otherwise complies with this subtitle.</text> </level> </level> <level label="2"> <text>The licensee may not do business at a location required to be listed in NMLS by § 12–911(a)(2) or (3) of this subtitle until the location is recorded with the information associated with the licensee’s license in NMLS.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-916" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <level label="1"> <text>A licensee may not perform debt management services for a consumer unless:</text> <level label="i"> <level label="1"> <text>The licensee provides the consumer with a consumer education program;</text> </level> <level label="2"> <text>The licensee provides the consumer with a written summary of the counseling options and strategies for addressing the consumer’s debt problems developed under § 12–901(f)(2) of this subtitle; and</text> </level> <level label="3"> <text>The consumer signs an acknowledgment stating that the consumer has reviewed the written summary and has decided to proceed with entering into a debt management services agreement with the licensee;</text> </level> </level> <level label="ii"> <text>The licensee, through a debt management counselor certified by an independent organization, has:</text> <level label="1"> <text>Prepared a financial analysis of and an initial budget plan for the consumer’s debt obligations;</text> </level> <level label="2"> <text>Provided a copy of the financial analysis and the initial budget plan to the consumer; and</text> </level> <level label="3"> <text>Provided to the consumer, for all creditors identified by the consumer, a list of:</text> </level> <level label="A"> <text>The creditors that the licensee reasonably expects to participate in the management of the consumer’s debt under the debt management services agreement; and</text> </level> <level label="B"> <text>The creditors that the licensee reasonably expects not to participate in the management of the consumer’s debt under the debt management services agreement;</text> </level> </level> <level label="iii"> <text>The licensee and the consumer have executed a debt management services agreement that describes the debt management services to be provided by the licensee to the consumer;</text> </level> <level label="iv"> <text>The licensee has a reasonable expectation based on the licensee’s past experience that each creditor of the consumer that is listed as a participating creditor in the consumer’s debt management services agreement will accept payment of the consumer’s debts owed to the creditor as provided in the consumer’s debt management services agreement;</text> </level> <level label="v"> <text>The licensee has made a determination, based on the licensee’s analysis of the information provided by the consumer and otherwise available to it, that:</text> <level label="1"> <text>The debt management services are suitable for the consumer; and</text> </level> <level label="2"> <text>The consumer will be able to meet the payment obligations under the debt management services agreement; and</text> </level> </level> <level label="vi"> <text>A copy of the completed debt management services agreement has been provided to the consumer.</text> </level> </level> <level label="2"> <level label="i"> <text>A licensee may provide to a consumer the materials required under paragraph (1)(ii) of this subsection using the Internet if:</text> <level label="1"> <text>A debt management counselor of the licensee has reviewed and approved the computer program or application used to create the financial analysis and initial budget plan; and</text> </level> <level label="2"> <text>The consumer is:</text> </level> <level label="A"> <text>Advised of the availability of counseling; and</text> </level> <level label="B"> <text>Afforded the opportunity for counseling and for discussion of the financial analysis and initial budget plan with a debt management counselor at any time.</text> </level> </level> <level label="ii"> <text>Title 21 of the Commercial Law Article applies to the provision of materials and associated transactions under this paragraph.</text> </level> </level> <level label="3"> <text>In addition to the requirements under paragraph (1) of this subsection, before providing debt management services for a consumer, a debt management services provider shall provide a written notice to the consumer stating:</text> <level label="i"> <text>That if the consumer elects to file for bankruptcy, the consumer will be required under federal bankruptcy law to receive pre–bankruptcy credit counseling services from a nonprofit credit counseling agency that is approved by the United States Trustee Program;</text> </level> <level label="ii"> <text>Whether the debt management services provider is approved by the United States Trustee Program to provide pre–bankruptcy credit counseling services; and</text> </level> <level label="iii"> <text>That the consumer should contact a federal bankruptcy court to obtain a list of credit counseling agencies that are approved by the United States Trustee Program.</text> </level> </level> </level> <level label="b"> <text>Each debt management services agreement shall:</text> <level label="1"> <text>Be signed and dated by the licensee and the consumer; and</text> </level> <level label="2"> <text>Include, in at least 12 point type:</text> <level label="i"> <text>The name, address, and phone number of the consumer;</text> </level> <level label="ii"> <text>The name, address, phone number, and license number of the licensee;</text> </level> <level label="iii"> <text>A description of the debt management services to be provided to the consumer and any fees to be charged to the consumer for the debt management services;</text> </level> <level label="iv"> <text>A disclosure of the existence of the surety bond required under § 12–914 of this subtitle;</text> </level> <level label="v"> <text>The name and address of the financial institution in which funds, paid by the consumer to the licensee for disbursement to the consumer’s creditors, will be held;</text> </level> <level label="vi"> <text>A notice of the right of a party to the debt management services agreement to rescind the debt management services agreement at any time by giving written notice of rescission to the other party;</text> </level> <level label="vii"> <text>A schedule of payments that the consumer must make to the debt management services provider, including:</text> <level label="1"> <text>The amount of each payment and the date on which each payment is due; and</text> </level> <level label="2"> <text>An itemization of the maintenance fees that will be retained by the debt management services provider, and the amount of money that will be paid to the consumer’s creditors, from each payment the consumer makes to the debt management services provider;</text> </level> </level> <level label="viii"> <text>A list of:</text> <level label="1"> <level label="A"> <text>Each participating creditor of the consumer to which payments will be made under the debt management services agreement;</text> </level> </level> <level label="B"> <text>The amount owed to each creditor; and</text> </level> <level label="C"> <text>A schedule of payments that the debt management services provider will make to each participating creditor from the consumer’s payments, including the amount of each payment and the date on which each payment will be made; and</text> </level> <level label="2"> <text>Each creditor that the licensee reasonably expects not to participate in the management of the consumer’s debt under the debt management services agreement;</text> </level> </level> <level label="ix"> <text>A disclosure that the licensee also may receive compensation from the consumer’s creditors for providing debt management services to the consumer;</text> </level> <level label="x"> <text>A disclosure that the licensee may not, as a condition of entering into a debt management services agreement, require a consumer to purchase for a fee a counseling session, an educational program, or materials and supplies;</text> </level> <level label="xi"> <text>A disclosure that the licensee may not require a voluntary contribution from a consumer for any service provided by the licensee to the consumer;</text> </level> <level label="xii"> <text>A disclosure that, by executing the debt management services agreement, the consumer authorizes any financial institution in which the licensee has established a trust account for deposit of the consumer’s funds to disclose to the Commissioner any financial records relating to the trust account during the course of any investigation or examination of the licensee by the Commissioner;</text> </level> <level label="xiii"> <text>A disclosure that execution of a debt management services agreement may impact the consumer’s credit rating and credit scores; and</text> </level> <level label="xiv"> <text>The following notice:</text> <text>“The Commissioner of Financial Regulation for the State of Maryland will accept questions and complaints from Maryland residents regarding (name and license number of the debt management services provider) at (address of the Commissioner) phone (toll–free number of the Commissioner). Do not sign this agreement before you read it. You must be given a copy of this agreement.”.</text> </level> </level> </level> <level label="c"> <text>A debt management services agreement between a consumer and a person that is not a licensee under this subtitle shall be null and void, and all fees paid to the person under the debt management services agreement shall be recoverable by the consumer, together with reasonable attorney’s fees.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-917" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>Within 2 business days after receipt, a licensee shall deposit, in a trust account established for the benefit of consumers, any funds paid to the licensee by or on behalf of a consumer for disbursement to the consumer’s creditors.</text> </level> <level label="b"> <text>A licensee shall:</text> <level label="1"> <text>Maintain separate records of account for each consumer to whom the licensee is providing debt management services;</text> </level> <level label="2"> <text>Disburse any funds paid by or on behalf of a consumer to the consumer’s creditors within 8 business days after receipt of the funds; and</text> </level> <level label="3"> <level label="i"> <text>Correct any misdirected payments resulting from an error by the licensee; and</text> </level> <level label="ii"> <text>Reimburse the consumer for any actual fees or other charges imposed by a creditor as a result of the misdirection.</text> </level> </level> </level> <level label="c"> <text>A licensee may not commingle any trust account established for the benefit of consumers with any operating accounts of the licensee.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-918" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>With respect to the provision of debt management services, a licensee may not impose any fees or other charges on a consumer, or receive any funds or other payments from a consumer or another person on behalf of a consumer:</text> <level label="1"> <text>Except as provided in subsections (g)(3) and (i) of this section, until after the licensee and consumer have executed a debt management services agreement; and</text> </level> <level label="2"> <text>Only as allowed under this section.</text> </level> </level> <level label="b"> <level label="1"> <text>A licensee may charge a consultation fee not exceeding $50.</text> </level> <level label="2"> <text>The cost of a credit report on a consumer shall be paid from the consultation fee paid by the consumer.</text> </level> </level> <level label="c"> <level label="1"> <text>Subject to paragraph (2) of this subsection, a licensee may charge a monthly maintenance fee not exceeding $8 for each creditor of a consumer that is listed in the debt management services agreement between the licensee and the consumer.</text> </level> <level label="2"> <text>The total fees charged to a consumer under paragraph (1) of this subsection may not exceed $40 per month.</text> </level> </level> <level label="d"> <text>A licensee may collect from or on behalf of a consumer the funds the consumer has agreed to pay to the licensee under the debt management services agreement.</text> </level> <level label="e"> <text>A licensee may not charge a fee to:</text> <level label="1"> <text>Prepare a financial analysis or an initial budget plan for the consumer;</text> </level> <level label="2"> <text>Counsel a consumer about debt management;</text> </level> <level label="3"> <text>Provide a consumer with the consumer education program described in the licensee’s license application; or</text> </level> <level label="4"> <text>Rescind a debt management services agreement.</text> </level> </level> <level label="f"> <level label="1"> <text>A licensee may not require a voluntary contribution from a consumer for any service provided by the licensee to the consumer.</text> </level> <level label="2"> <text>A licensee may accept a voluntary contribution from a consumer for a debt management service provided by the licensee to the consumer if the aggregate amount of the voluntary contribution and any other fees received by the licensee from the consumer for debt management services does not exceed the total amount the licensee is authorized to charge the consumer under subsections (b) and (c) of this section.</text> </level> </level> <level label="g"> <level label="1"> <text>Before providing debt management services to a consumer, a licensee shall provide the consumer a list of services and their charges describing:</text> <level label="i"> <text>Those services that the licensee offers:</text> <level label="1"> <text>Free of charge if the consumer enters into a debt management services agreement with the licensee; and</text> </level> <level label="2"> <text>For a charge if the consumer does not enter into a debt management services agreement with the licensee; and</text> </level> </level> <level label="ii"> <text>Those services that the licensee offers for a charge that are not offered as a part of debt management services.</text> </level> </level> <level label="2"> <text>A licensee may not, as a condition of entering into a debt management services agreement, require a consumer to purchase for a fee a counseling session, an educational program, or materials and supplies.</text> </level> <level label="3"> <text>A licensee may charge a consumer a fee for a counseling session, an educational program, or materials and supplies if the consumer does not enter into a debt management services agreement with the licensee.</text> </level> </level> <level label="h"> <level label="1"> <text>In addition to any other right of rescission contained in the debt management services agreement, a consumer may modify or rescind a debt management services agreement if the consumer is notified of a creditor’s nonparticipation under this subsection.</text> </level> <level label="2"> <text>If a creditor that is listed as participating in the debt management services agreement declines to participate in debt management services under the agreement, the licensee shall notify the consumer by certified mail, or other verifiable means approved by the consumer, at least 5 business days before the consumer’s next scheduled payment under the agreement.</text> </level> <level label="3"> <text>The notice shall include:</text> <level label="i"> <text>The identity of the creditor; and</text> </level> <level label="ii"> <text>The right of the consumer to modify or rescind the agreement.</text> </level> </level> <level label="4"> <text>A consumer who rescinds a debt management services agreement under this subsection is entitled to a refund of all unexpended funds that the consumer has paid to the licensee for the reduction of the consumer’s debt.</text> </level> </level> <level label="i"> <text>If a payment by a consumer under this section to a licensee is dishonored, the licensee may charge the consumer the amount allowable for dishonored checks or other instruments under § 15-802 of the Commercial Law Article, whether or not the consumer has entered into a debt management services agreement with the licensee.</text> </level> <level label="j"> <text>With respect to the provision of debt management services, if a licensee imposes any fee or other charge or receives any funds or other payments not authorized under this section, except as a result of an accidental and bona fide error:</text> <level label="1"> <text>The debt management services agreement shall be void; and</text> </level> <level label="2"> <text>The licensee shall return the amount of the unauthorized fees, charges, funds, or payments to the consumer.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-919" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>A licensee shall provide to each consumer with whom the licensee has a debt management services agreement a written accounting of:</text> <level label="1"> <text>The amount of funds received from the consumer for payment to the consumer’s creditors since the last report; and</text> </level> <level label="2"> <text>The amounts and dates of disbursements made to each creditor of the consumer since the last report.</text> </level> </level> <level label="b"> <text>A licensee shall provide the accounting required under subsection (a) of this section:</text> <level label="1"> <text>At least once during each calendar quarter; and</text> </level> <level label="2"> <text>On cancellation or termination of the debt management services agreement.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-920" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>A licensee may not:</text> <level label="1"> <text>Purchase any debt or obligation of a consumer;</text> </level> <level label="2"> <text>Lend money or provide credit to a consumer;</text> </level> <level label="3"> <text>Obtain a mortgage or other security interest in property owned by a consumer;</text> </level> <level label="4"> <text>Operate as a collection agency, as defined in § 7–101 of the Business Regulation Article;</text> </level> <level label="5"> <text>Structure a debt management services agreement in a manner that would result in a negative amortization of any of the consumer’s debts;</text> </level> <level label="6"> <text>Make any false, misleading, or deceptive representations or omissions of information in connection with the offer, sale, or performance of any service;</text> </level> <level label="7"> <text>Offer, pay, or give a substantial gift, bonus, premium, reward, or other compensation to a person for referring a prospective customer to the licensee;</text> </level> <level label="8"> <text>Offer an incentive, including a gift, bonus, premium, reward, or other compensation, to a consumer for executing a debt management services agreement with the licensee;</text> </level> <level label="9"> <text>Charge for or provide credit insurance;</text> </level> <level label="10"> <text>Compromise any debts of a consumer unless the licensee has obtained the prior written approval of the consumer, and the compromise benefits the consumer;</text> </level> <level label="11"> <text>Enter into a contract or fee–for–service arrangement with a person owned, controlled by, or affiliated with an officer, a director, or an employee of the debt management services provider, or with a relative of an officer, a director, or an employee, that benefits an officer, a director, or an employee of the debt management services provider;</text> </level> <level label="12"> <text>Advertise, display, distribute, broadcast, televise, or otherwise publish debt management service rates, terms, or services in a false, misleading, or deceptive manner;</text> </level> <level label="13"> <text>Pay an incentive to an employee for enrolling a consumer in a debt management services plan or agreement; or</text> </level> <level label="14"> <text>Violate any provision of federal or State law governing debt management services or other related services.</text> </level> </level> <level label="b"> <level label="1"> <text>Notwithstanding any other provision of State law, a licensee may not, directly or indirectly, collect any fee for referring, advising, procuring, arranging, or assisting a consumer in obtaining any extension of credit or other consumer service from a lender or service provider if the licensee, or any owner, officer, director, principal, or employee of the licensee, is an owner, partner, director, officer, or employee of the lender or service provider.</text> </level> <level label="2"> <text>This subsection does not prohibit a licensee from referring, advising, procuring, arranging, or assisting a consumer in obtaining any extension of credit or other consumer service from a lender or service provider of which the licensee, or any owner, officer, director, principal, or employee of the licensee, is an owner, partner, director, officer, or employee, if:</text> <level label="i"> <text>The licensee does not directly or indirectly collect any fee; and</text> </level> <level label="ii"> <text>The consumer is provided with a written disclosure of the relationship.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-921" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <level label="1"> <text>On or before April 30 of each year, a licensee shall report to the Commissioner on the debt management services business of the licensee conducted during the preceding calendar year.</text> </level> <level label="2"> <text>The annual report shall be on the form that the Commissioner requires.</text> </level> <level label="3"> <text>The report shall include:</text> <level label="i"> <text>An audited financial statement that is prepared in accordance with generally accepted accounting principles and includes a balance sheet, income statement, statement of changes in fund balances, and statement of cash flow;</text> </level> <level label="ii"> <text>An alphabetical list of all debt management counselors who provided services for the licensee during the previous calendar year;</text> </level> <level label="iii"> <text>The number of consumers for whom the licensee provided debt management services under a debt management services agreement during the preceding calendar year;</text> </level> <level label="iv"> <text>The number of consumers who signed new debt management services agreements with the licensee during the preceding calendar year;</text> </level> <level label="v"> <text>The highest number of consumers for whom the licensee provided debt management services under a debt management services agreement during any month in the preceding calendar year;</text> </level> <level label="vi"> <text>The amounts paid by consumers to the licensee, both in total and for each month, during the preceding calendar year, broken down by:</text> <level label="1"> <text>Payments to be disbursed to creditors; and</text> </level> <level label="2"> <text>Payments for the licensee’s services;</text> </level> </level> <level label="vii"> <text>The percentage of all consumers who received a consumer education program and subsequently executed a debt management services agreement during the preceding calendar year;</text> </level> <level label="viii"> <text>The number of consumers who successfully completed a debt management plan during the preceding calendar year;</text> </level> <level label="ix"> <text>The number of consumers who ceased participating in a debt management plan without successfully completing the plan during the preceding calendar year; and</text> </level> <level label="x"> <text>A representative sample of the written summary required under § 12–916(a)(1)(i)2 of this subtitle.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Within 15 days after the occurrence of any of the following events, a licensee shall file a written report with the Commissioner describing the event and its expected impact on the licensee’s activities in the State:</text> <level label="i"> <text>The filing for bankruptcy or reorganization by the licensee;</text> </level> <level label="ii"> <text>The institution of a revocation or suspension proceeding against the licensee by a governmental authority that is related to the licensee’s debt management services business in any state;</text> </level> <level label="iii"> <text>A felony indictment or conviction of the licensee, or any of its officers, directors, or debt management counselors, that is related to the licensee’s debt management services business;</text> </level> <level label="iv"> <text>The commencement of a civil action by a consumer against the licensee, or its owners, officers, directors, principals, or debt management counselors, that is related to the licensee’s debt management services business;</text> </level> <level label="v"> <text>The filing of any material litigation against the licensee, or its owners, officers, directors, principals, or debt management counselors, that is related to the licensee’s debt management services business; and</text> </level> <level label="vi"> <text>A list of all third-party vendors and other service providers that the licensee used in providing debt management services at any time in the preceding calendar year.</text> </level> </level> <level label="2"> <text>The written report required under paragraph (1) of this subsection shall be sent to the Commissioner by certified mail, return receipt requested, and include details sufficient to identify the event.</text> </level> </level> <level label="c"> <text>The Commissioner may require any other reports from a licensee that the Commissioner considers necessary.</text> </level> <level label="d"> <text>If a licensee fails to make any report required by this subtitle, the Commissioner may require the licensee to pay a surcharge not exceeding $50 for each day that the report is overdue.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-922" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>To enable the Commissioner to determine compliance with this subtitle, a licensee shall make and preserve the following books, accounts, and records for a period of at least 7 years:</text> <level label="1"> <text>A general ledger containing all assets, liability, capital, income, and expense accounts;</text> </level> <level label="2"> <text>Each debt management services agreement between the licensee and a consumer;</text> </level> <level label="3"> <text>Books and records for each consumer with whom the licensee has a debt management services agreement;</text> </level> <level label="4"> <text>Bank statements and bank reconciliation records;</text> </level> <level label="5"> <text>A copy of each written summary required under § 12–916(a)(1)(i)2 of this subtitle; and</text> </level> <level label="6"> <text>A copy of each signed acknowledgment required under § 12–916(a)(1)(i)3 of this subtitle.</text> </level> </level> <level label="b"> <text>A licensee may retain the books, accounts, and records required under this section at any location, provided that the licensee:</text> <level label="1"> <text>Notifies the Commissioner in writing of the location of the books, accounts, and records; and</text> </level> <level label="2"> <text>Makes the books, accounts, and records available at a location in the State, as agreed by the Commissioner and the licensee, within 7 days after a written request for examination by the Commissioner.</text> </level> </level> <level label="c"> <text>A licensee shall retain the books, accounts, and records required under this section in:</text> <level label="1"> <text>Original form; or</text> </level> <level label="2"> <text>Photographic, electronic, or other similar form approved by the Commissioner.</text> </level> </level> <level label="d"> <text>If the Commissioner finds that the books, accounts, and records of the licensee are insufficient to determine compliance with this subtitle, the Commissioner may require the licensee to have a certified public accountant audit the licensee, at the licensee’s expense, for any period of time that the Commissioner considers necessary.</text> </level> <level label="e"> <level label="1"> <text>A licensee shall keep all books, accounts, and records relating to a consumer confidential, and may not disclose any information about a consumer except to a duly authorized government official, the consumer, or the consumer’s representative.</text> </level> <level label="2"> <text>A duly authorized government official may disclose information obtained under paragraph (1) of this subsection only in accordance with Title 4 of the General Provisions Article.</text> </level> </level> <level label="f"> <text>The requirements of this section also apply to books, accounts, and records in the possession of a subsidiary, affiliate, or other person that relate to the operation of and services provided by the licensee’s debt management services business.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-923" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>To discover any violations of this subtitle or to obtain any information required by this subtitle, the Commissioner at any time may investigate the business of:</text> <level label="1"> <text>A licensee;</text> </level> <level label="2"> <text>A person that is engaged or participating in the business of providing debt management services; and</text> </level> <level label="3"> <text>Any other person that the Commissioner has cause to believe is violating this subtitle or any regulation adopted under this subtitle, whether that person claims to be within or beyond the scope of this subtitle.</text> </level> </level> <level label="b"> <text>For the purposes of this section, the Commissioner:</text> <level label="1"> <text>Shall be given access to any licensed location or other place of business and all books, papers, records, safes, and vaults of the person under investigation; and</text> </level> <level label="2"> <text>May summon and examine under oath any person whose testimony the Commissioner requires.</text> </level> </level> <level label="c"> <text>If, after an investigation conducted under this section, the Commissioner finds that the person that was investigated violated this subtitle or any regulation adopted under this subtitle, the person shall pay all reasonably incurred costs of the investigation.</text> </level> <level label="d"> <level label="1"> <text>If a person fails to comply with a subpoena or summons of the Commissioner under this subtitle or to testify concerning any matter about which the person may be interrogated under this subtitle, the Commissioner may file a petition for enforcement with the circuit court for any county.</text> </level> <level label="2"> <text>On petition by the Commissioner, the court may order the person to attend and testify or produce evidence.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-924" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>The Commissioner may conduct an examination of a licensee with or without prior notice.</text> </level> <level label="b"> <text>The licensee shall pay all reasonably incurred costs directly related to an examination conducted under this section, including the travel expenses, lodging expenses, and a per diem for examiners.</text> </level> <level label="c"> <text>Any examination may be conducted in conjunction with an examination performed by a representative of a responsible supervisory agency of another state.</text> </level> <level label="d"> <level label="1"> <text>The Commissioner, in lieu of an examination, may accept the examination report of a responsible supervisory agency of another state.</text> </level> <level label="2"> <text>A report accepted under paragraph (1) of this subsection is considered for all purposes as an official report of the Commissioner.</text> </level> </level> <level label="e"> <text>The Commissioner may:</text> <level label="1"> <text>Examine all books, accounts, and records that the Commissioner determines are necessary to conduct a complete examination, including the books, accounts, and records in the possession of a subsidiary, affiliate, or other person that relate to the operation of and services provided by the licensee’s debt management services business; and</text> </level> <level label="2"> <text>Examine under oath any owner, officer, director, principal, and employee of the licensee or any other individual who may provide information on behalf of the licensee.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-925" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <text>A licensee shall include in any advertisement the licensee’s unique identifier.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-926" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>Except as provided in subsection (c) of this section, and subject to the hearing provisions of § 12-927 of this subtitle, the Commissioner may deny a license to an applicant, reprimand a licensee, or suspend or revoke the license of a licensee if the applicant or licensee or an owner, officer, director, or principal of the applicant or licensee:</text> <level label="1"> <text>Fraudulently or deceptively obtains or attempts to obtain a license;</text> </level> <level label="2"> <text>Fraudulently or deceptively uses a license or debt management services license number;</text> </level> <level label="3"> <text>Presents or attempts to present the debt management services license number of another licensee as the applicant’s or licensee’s debt management services license number;</text> </level> <level label="4"> <text>Violates any provision of this subtitle or any regulation adopted under this subtitle;</text> </level> <level label="5"> <text>Is convicted under the laws of the United States or of any state of:</text> <level label="i"> <text>A felony; or</text> </level> <level label="ii"> <text>A misdemeanor that is directly related to the fitness and qualification of the applicant or licensee to engage in the business of providing debt management services;</text> </level> </level> <level label="6"> <text>In connection with the provision of debt management services:</text> <level label="i"> <text>Commits a fraud;</text> </level> <level label="ii"> <text>Engages in an illegal or dishonest activity;</text> </level> <level label="iii"> <text>Has engaged or participated in an unsafe or unsound act; or</text> </level> <level label="iv"> <text>Misrepresents or fails to disclose a material fact to a person entitled to that information;</text> </level> </level> <level label="7"> <text>Engages in false, misleading, or deceptive advertising; or</text> </level> <level label="8"> <text>Otherwise demonstrates unworthiness, bad faith, dishonesty, or any other quality that indicates that the business of the applicant or licensee has not been or will not be conducted honestly, fairly, and equitably.</text> </level> </level> <level label="b"> <text>In determining whether to deny a license to an applicant, reprimand a licensee, or suspend or revoke the license of a licensee for a reason listed in subsection (a)(5) of this section, the Commissioner shall consider:</text> <level label="1"> <text>The nature of the crime;</text> </level> <level label="2"> <text>The relationship of the crime to the activities authorized by the license;</text> </level> <level label="3"> <text>With respect to a felony, the relevance of the conviction to the fitness and qualification of the applicant or licensee to provide debt management services;</text> </level> <level label="4"> <text>The length of time since the conviction; and</text> </level> <level label="5"> <text>The behavior and activities of the applicant or licensee since the conviction.</text> </level> </level> <level label="c"> <text>Subject to the hearing provisions of § 12-927 of this subtitle, the Commissioner shall deny a license to an applicant and suspend or revoke the license of a licensee if the applicant or licensee or an owner, officer, director, or principal of the applicant or licensee has:</text> <level label="1"> <text>Committed a violation of subsection (a) of this section that directly results in property damage or monetary loss by any other person; and</text> </level> <level label="2"> <text>Has not restored the property or money to the person or paid the value of the property to the person.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-927" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <text>Before the Commissioner denies an application for a license under § 12-910 of this subtitle or takes any action under § 12-926 of this subtitle, the Commissioner shall give the applicant or licensee an opportunity for a hearing.</text> </level> <level label="b"> <text>Notice of the hearing shall be given and the hearing shall be held in accordance with Title 10, Subtitle 2 of the State Government Article.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-928" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <level label="a"> <level label="1"> <text>The Commissioner may enforce the provisions of this subtitle and regulations adopted under this subtitle by:</text> <level label="i"> <text>Issuing an order requiring the violator:</text> <level label="1"> <text>To cease and desist from the violation and any further similar violations; and</text> </level> <level label="2"> <text>To take affirmative action to correct the violation, including the restitution of money or property to any person aggrieved by the violation; and</text> </level> </level> <level label="ii"> <text>Imposing a civil penalty not exceeding $10,000 for each violation.</text> </level> </level> <level label="2"> <text>An order issued under this subsection may apply to a licensee’s agent that violates any provision of this subtitle or the regulations adopted under this subtitle.</text> </level> <level label="3"> <text>If a violator fails to comply with an order issued under paragraph (1)(i) of this subsection, the Commissioner may impose a civil penalty not exceeding $25,000 for each violation from which the violator failed to cease and desist or for which the violator failed to take corrective affirmative action.</text> </level> </level> <level label="b"> <text>The Commissioner may file a petition in the circuit court for any county seeking enforcement of an order issued under this section.</text> </level> <level label="c"> <text>In determining the amount of financial penalty to be imposed under subsection (a) of this section, the Commissioner shall consider the following:</text> <level label="1"> <text>The seriousness of the violation;</text> </level> <level label="2"> <text>The good faith of the violator;</text> </level> <level label="3"> <text>The violator’s history of previous violations;</text> </level> <level label="4"> <text>The deleterious effect of the violation on the public;</text> </level> <level label="5"> <text>The assets of the violator; and</text> </level> <level label="6"> <text>Any other factors relevant to the determination of the financial penalty.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-929" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <text>A person who knowingly and willfully violates any provision of this subtitle is guilty of a felony and on conviction is subject to a fine not exceeding $1,000 for the first violation and not exceeding $5,000 for each subsequent violation or imprisonment not exceeding 5 years or both.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-930" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <text>In addition to any other remedies provided in this subtitle, a consumer may bring a civil action to recover for any damages caused by a violation of this subtitle, including court costs and reasonable attorney’s fees.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-931" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="9" subtitle_name="Maryland Debt Management Services Act"> <text>This subtitle may be cited as the Maryland Debt Management Services Act.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-1001" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Consumer” means an individual who:</text> <level label="1"> <text>Resides in the State; and</text> </level> <level label="2"> <text>Is seeking debt settlement services or has entered into a debt settlement services agreement in connection with debts that are consumer debts, as defined in § 13–101 of the Commercial Law Article.</text> </level> </level> <level label="c"> <text>“Debt management services” has the meaning stated in § 12–901 of this title.</text> </level> <level label="d"> <level label="1"> <text>“Debt settlement services” means any service or program represented, directly or by implication, to renegotiate, settle, reduce, or in any way alter the terms of payment or other terms of a debt between a consumer and one or more unsecured creditors or debt collectors, including a reduction in the balance, interest rate, or fees owed by a consumer to an unsecured creditor or debt collector.</text> </level> <level label="2"> <text>“Debt settlement services” does not include debt management services.</text> </level> </level> <level label="e"> <text>“Debt settlement services agreement” means a written contract, plan, or agreement between a debt settlement services provider and a consumer for the performance of debt settlement services.</text> </level> <level label="f"> <text>“Debt settlement services fee” means a fee charged to a consumer by a debt settlement services provider for providing debt settlement services for a consumer.</text> </level> <level label="g"> <text>“Debt settlement services provider” means a person that provides or offers to provide debt settlement services for a consumer regardless of whether the person provides the debt settlement services on a for–profit or not–for–profit basis.</text> </level> <level label="h"> <text>“Dedicated account” means an account described in § 12–1010(d) of this subtitle.</text> </level> <level label="i"> <text>“Offer, provide, or attempt to provide debt settlement services” means providing debt settlement services:</text> <level label="1"> <text>To consumers through any means, including telephone telemarketing, Internet solicitation, and face–to–face meetings; and</text> </level> <level label="2"> <text>On an intrastate or interstate basis.</text> </level> </level> <level label="j"> <text>“Principal amount of the debt” means the amount of a debt at the time the debt is included in a debt settlement services agreement.</text> </level> <level label="k"> <text>“Registrant” means a person registered under this subtitle to provide debt settlement services.</text> </level> <level label="l"> <text>“Student education loan” has the meaning stated in § 2–104.1(a) of this article.</text> </level> <level label="m"> <text>“Unique identifier” means a number or another identifier assigned by NMLS.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1002" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <level label="a"> <text>Subject to subsection (b) of this section, the provisions of this subtitle are in addition to and not in substitution for any other provision of law.</text> </level> <level label="b"> <text>A person who periodically receives funds from consumers to be used in connection with providing debt settlement services is not engaged in providing debt management services, and is not subject to Subtitle 9 of this title, if the person:</text> <level label="1"> <text>Complies with the requirements of this subtitle;</text> </level> <level label="2"> <level label="i"> <text>Negotiates to settle a consumer’s debts by reducing the principal amount of the debts owed; and</text> </level> <level label="ii"> <text>Makes no more than six settlement payments for each debt; and</text> </level> </level> <level label="3"> <text>Establishes a dedicated account that:</text> <level label="i"> <text>Is separate from any trust account established by the person under § 12–917 of this title; and</text> </level> <level label="ii"> <text>Is not established solely for the purpose of holding consumer funds to be disbursed to the debt settlement services provider for fees.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1003" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <text>This subtitle does not apply to:</text> <level label="1"> <text>The following persons when engaged in the regular course of their respective businesses and professions:</text> <level label="i"> <text>An attorney at law who is admitted to the Maryland Bar while the attorney at law is providing professional legal services in an attorney–client relationship;</text> </level> <level label="ii"> <text>An escrow agent;</text> </level> <level label="iii"> <text>A certified public accountant;</text> </level> <level label="iv"> <text>A banking institution, other–state bank, national banking association, credit union, or savings and loan association;</text> </level> <level label="v"> <text>A person that:</text> <level label="1"> <text>Provides a bill payer service, as defined in § 12–401 of this title;</text> </level> <level label="2"> <text>Does not initiate any contract with individual creditors of a debtor to compromise a debt or arrange a new payment schedule; and</text> </level> <level label="3"> <text>Does not provide any debt counseling services;</text> </level> </level> <level label="vi"> <text>A person that provides an accelerated mortgage payment service, as defined in § 12–401 of this title;</text> </level> <level label="vii"> <text>A title insurer, title insurance agency, or abstract company; or</text> </level> <level label="viii"> <text>A judicial officer or a person acting under a court order;</text> </level> </level> <level label="2"> <text>A person while performing services incidental to the dissolution, winding up, or liquidation of a partnership, corporation, or other business enterprise;</text> </level> <level label="3"> <text>A trade or mercantile association acting in the course of arranging the adjustment of debts with a business establishment;</text> </level> <level label="4"> <level label="i"> <text>A mortgage lender, as defined in § 11–501 of this article:</text> <level label="1"> <text>That is licensed by the Commissioner; and</text> </level> <level label="2"> <text>While engaged in the mortgage lending business, as defined in § 11–501 of this article; or</text> </level> </level> <level label="ii"> <text>An employee of a mortgage lender; or</text> </level> </level> <level label="5"> <text>A collection agency, as defined in § 7–101 of the Business Regulation Article:</text> <level label="i"> <text>That is licensed by the State Collection Agency Licensing Board; and</text> </level> <level label="ii"> <text>While engaged in the collection agency business, as defined in § 7–101 of the Business Regulation Article.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1004" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <level label="a"> <text>A person may not offer, provide, or attempt to provide debt settlement services unless the person:</text> <level label="1"> <text>Is registered with the Commissioner under this subtitle; or</text> </level> <level label="2"> <text>Is exempt from registration under this subtitle.</text> </level> </level> <level label="b"> <text>During the time period established by the Commissioner under subsection (c) of this section, each registrant shall:</text> <level label="1"> <text>Obtain and maintain a valid unique identifier issued by NMLS when an account is created with NMLS; and</text> </level> <level label="2"> <text>Transfer registration information to NMLS.</text> </level> </level> <level label="c"> <level label="1"> <text>The Commissioner shall establish a time period that is not less than 2 months within which a registrant must transfer registration information to NMLS.</text> </level> <level label="2"> <text>The time period that the Commissioner establishes under this subsection shall begin on or after July 1, 2019.</text> </level> <level label="3"> <text>At least 30 days before the transfer period begins, the Commissioner shall:</text> <level label="i"> <text>Notify registrants of the transfer period; and</text> </level> <level label="ii"> <text>Provide instructions for the transfer of registration information to NMLS.</text> </level> </level> </level> <level label="d"> <text>Subject to subsection (b) of this section, an applicant for the issuance of a registration or a renewal of a registration shall apply for the initial registration or the renewal of the registration through NMLS:</text> <level label="1"> <text>On or after July 1, 2019; or</text> </level> <level label="2"> <text>If the Commissioner has not joined NMLS with respect to persons required to be registered under this subtitle as of July 1, 2019, on or after the date that the Commissioner joins, as specified by the Commissioner by public notice.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1005" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <text>To carry out the provisions of this subtitle, the Commissioner may:</text> <level label="1"> <text>Adopt regulations;</text> </level> <level label="2"> <text>Enter into cooperative and information sharing agreements with any federal or State regulatory agency having authority over debt settlement services providers; and</text> </level> <level label="3"> <text>Exchange information about a debt settlement services provider, including information obtained during an examination, with any federal or State regulatory agency having authority over the debt settlement services provider.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1006" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <level label="a"> <text>A person registering as a debt settlement services provider with the Commissioner under this subtitle shall pay to the Commissioner a nonrefundable fee in the amount of:</text> <level label="1"> <text>$400 for the issuance of a registration under this subtitle; and</text> </level> <level label="2"> <text>$400 for the renewal of a registration under this subtitle.</text> </level> </level> <level label="b"> <text>In addition to the registration fee required under subsection (a) of this section, a registrant for the issuance of a registration or a renewal of a registration shall pay to NMLS any fees that NMLS imposes in connection with the issuance of the registration or the renewal of the registration.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1007" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <level label="a"> <text>All revenue received for the registration of persons under this subtitle and, except as provided in subsection (b) of this section, any other fee, examination assessment, or revenue received by the Commissioner under this subtitle shall be:</text> <level label="1"> <text>Credited to the Non–Depository Special Fund established under § 2–120 of this article; and</text> </level> <level label="2"> <text>Used in accordance with § 2–120(d) of this article.</text> </level> </level> <level label="b"> <text>Notwithstanding subsection (a) of this section, the Commissioner shall pay all fines and penalties collected by the Commissioner under this subtitle into the General Fund of the State.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1008" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <level label="a"> <text>To apply for a registration, an applicant shall submit to the Commissioner an application on the form that the Commissioner provides.</text> </level> <level label="b"> <text>The application shall include:</text> <level label="1"> <text>The applicant’s legal name, trade name, if any, main office address, telephone number, electronic mail address, if any, and website address, if any;</text> </level> <level label="2"> <text>The name, address, and telephone number of the applicant’s designated contact for receipt of complaints;</text> </level> <level label="3"> <text>The name, address, and telephone number of the applicant’s resident agent in the State; and</text> </level> <level label="4"> <text>Any other information that the Commissioner reasonably requires.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1009" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <level label="a"> <text>A registration issued under this subtitle expires on December 31 of each year.</text> </level> <level label="b"> <text>On or after November 1 of the year in which a registration expires, the registration may be renewed for an additional 1–year term if the registrant:</text> <level label="1"> <text>Otherwise is entitled to be registered;</text> </level> <level label="2"> <text>Pays to the Commissioner the renewal fee established under § 12–1006 of this subtitle;</text> </level> <level label="3"> <text>Submits to the Commissioner a renewal application on the form that the Commissioner requires; and</text> </level> <level label="4"> <text>Pays to NMLS any fees that NMLS imposes in connection with the renewal of the registration.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1010" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <level label="a"> <text>Except as allowed under this subtitle, a registrant may not offer, provide, or attempt to provide debt settlement services in the State.</text> </level> <level label="b"> <level label="1"> <text>A registrant may charge a consumer a debt settlement services fee as provided under this section.</text> </level> <level label="2"> <text>A registrant may not:</text> <level label="i"> <text>Charge a consumer a fee for consultation or for obtaining a consumer’s credit report; or</text> </level> <level label="ii"> <text>Require a voluntary contribution from a consumer for any service provided by the registrant.</text> </level> </level> </level> <level label="c"> <text>Except as provided under subsection (d) of this section, a registrant may not charge a consumer a debt settlement services fee until after:</text> <level label="1"> <text>A debt settlement services agreement has been executed between the registrant and the consumer;</text> </level> <level label="2"> <text>The registrant has renegotiated, settled, reduced, or otherwise altered the terms of at least one individual debt specified in the debt settlement services agreement; and</text> </level> <level label="3"> <text>The consumer has made at least one payment in accordance with the debt settlement services agreement.</text> </level> </level> <level label="d"> <text>Subsection (c) of this section does not prohibit a registrant from requesting or requiring a consumer to deposit funds in an account to be used for debt settlement services fees and for payments to creditors or debt collectors in connection with a debt settlement services agreement, provided that:</text> <level label="1"> <text>The funds are held in an account at an insured financial institution, as defined in § 1–101 of this article;</text> </level> <level label="2"> <text>The consumer owns the funds held in the account, including any accrued interest;</text> </level> <level label="3"> <text>The financial institution or entity administering the account is not owned or controlled by, or in any way affiliated with, the registrant;</text> </level> <level label="4"> <text>The financial institution or entity administering the account does not pay or accept any money or other compensation in exchange for referrals of business involving the registrant, but may charge account related fees; and</text> </level> <level label="5"> <text>If the consumer requests to withdraw from the debt settlement services agreement, within 7 days after the consumer’s request, all funds in the account, including accrued interest, less any debt settlement services fees earned by the registrant in compliance with this section, are paid to the consumer.</text> </level> </level> <level label="e"> <level label="1"> <text>Subject to paragraph (2) of this subsection, for each individual debt, a debt settlement services fee shall:</text> <level label="i"> <text>Bear the same proportional relationship to the debt settlement services fee for settling the total debt as the individual debt amount bears to the total debt; or</text> </level> <level label="ii"> <text>Be calculated as a percentage of the amount by which the principal amount of the debt exceeds the amount paid to the creditor or debt collector to settle the debt.</text> </level> </level> <level label="2"> <text>The percentage charged under paragraph (1)(ii) of this subsection shall be the same for each individual debt.</text> </level> </level> <level label="f"> <level label="1"> <text>A registrant shall allow a consumer to withdraw from a debt settlement services agreement at any time.</text> </level> <level label="2"> <text>If a consumer withdraws from the debt settlement services agreement, the registrant:</text> <level label="i"> <text>May not charge the consumer a penalty; and</text> </level> <level label="ii"> <text>May collect debt settlement services fees earned by the registrant in compliance with this section.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1011" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <text>A registrant may not misrepresent any material aspect of any debt settlement service.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-1012" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <level label="a"> <text>A debt settlement services agreement shall:</text> <level label="1"> <text>Be signed and dated by the registrant and the consumer; and</text> </level> <level label="2"> <text>Include, in at least 12 point type:</text> <level label="i"> <text>The name, address, and telephone number of the consumer;</text> </level> <level label="ii"> <text>The name, address, and telephone number of the registrant;</text> </level> <level label="iii"> <text>A description of the debt settlement services to be provided to the consumer;</text> </level> <level label="iv"> <level label="1"> <text>Any debt settlement services fees to be charged to the consumer; and</text> </level> <level label="2"> <text>A statement that the registrant may not:</text> </level> <level label="A"> <text>Charge the consumer a fee for consultation or for obtaining a consumer’s credit report; or</text> </level> <level label="B"> <text>Require a voluntary contribution from the consumer for any service provided by the registrant;</text> </level> </level> <level label="v"> <text>The identity of each individual creditor or debt collector whose debts are included in the debt settlement services agreement and the principal amount of the debt owed to each individual creditor or debt collector;</text> </level> <level label="vi"> <text>The principal amount of the total debt included in the debt settlement services agreement;</text> </level> <level label="vii"> <text>A good faith estimate of the amount of time necessary to achieve the represented results;</text> </level> <level label="viii"> <text>To the extent that the debt settlement services may include a debt settlement offer to any of the consumer’s creditors or debt collectors, a good faith estimate of:</text> <level label="1"> <text>The time by which the registrant will make a bona fide debt settlement offer to each of them; and</text> </level> <level label="2"> <text>The amount of money or percentage of each debt that the consumer must accumulate before the registrant will make a bona fide debt settlement offer to each of them;</text> </level> </level> <level label="ix"> <text>A statement that:</text> <level label="1"> <text>The consumer may withdraw from the debt settlement services agreement at any time; and</text> </level> <level label="2"> <text>If a consumer withdraws from the debt settlement services agreement, the registrant:</text> </level> <level label="A"> <text>May not charge a penalty; and</text> </level> <level label="B"> <text>May collect debt settlement services fees earned by the registrant;</text> </level> </level> <level label="x"> <text>For a debt settlement services agreement for student education loan debt relief, a statement in substantially the following form:</text> <text>“(Name of company) is a private company, and is not affiliated with the United States Department of Education or any other academic entity or governmental agency. (Name of company) is not a lender, guarantor, or servicer of federal student loans. You can apply for consolidation and other repayment plans without paid assistance through the United States Department of Education. More information is available on the Department’s website or through your federal student loan servicer. You can find out who your servicer is through the United States Department of Education.”;</text> </level> <level label="xi"> <text>If the registrant requests or requires the consumer to deposit funds in a dedicated account, a statement that:</text> <level label="1"> <text>The consumer owns the funds held in the account, including any accrued interest; and</text> </level> <level label="2"> <text>If the consumer requests to withdraw from the debt settlement services agreement, within 7 days after the request, all funds in the account, including accrued interest, less any debt settlement services fees earned by the registrant in compliance with § 12–1010 of this subtitle, must be paid to the consumer; and</text> </level> </level> <level label="xii"> <text>A statement that the consumer may be required to pay taxes on the amount by which the consumer’s debt is reduced.</text> </level> </level> </level> <level label="b"> <text>The disclosures required under subsection (a)(2)(vii) through (xii) of this section shall be provided to the consumer in a clear and conspicuous manner in the debt settlement services agreement.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1012.1" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <text>A debt settlement services provider engaged in student education loan debt relief may not:</text> <level label="1"> <text>Advise, expressly or by implication, that a consumer stop making payments or stop communicating with the consumer’s student loan servicer; or</text> </level> <level label="2"> <text>Access or obtain a consumer’s student aid information in violation of federal law.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1013" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <level label="a"> <text>An advertisement for debt settlement services shall include clearly and conspicuously a disclosure that, to the extent that any aspect of the debt settlement services relies on or results in the consumer’s failure to make timely payments to the consumer’s creditors or debt collectors, the use of the debt settlement services:</text> <level label="1"> <text>Will likely adversely affect the consumer’s creditworthiness;</text> </level> <level label="2"> <text>May result in the consumer being subject to collections or being sued by creditors or debt collectors; and</text> </level> <level label="3"> <text>May increase the amount of money the consumer owes due to the accrual of fees and interest by creditors or debt collectors.</text> </level> </level> <level label="b"> <text>An advertisement for debt settlement services for student education loan debt relief shall include clearly and conspicuously a disclosure in substantially the following form:</text> <text>“(Name of company) is a private company, and is not affiliated with the United States Department of Education or any other academic entity or governmental agency. (Name of company) is not a lender, guarantor, or servicer of federal student loans. You can apply for consolidation and other repayment plans without paid assistance through the United States Department of Education. More information is available on the Department’s website or through your federal student loan servicer. You can find out who your servicer is through the United States Department of Education.”.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1014" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <level label="a"> <text>A registrant that establishes a dedicated account in accordance with § 12–1010(d) of this subtitle shall file a surety bond with the Commissioner at the time the dedicated account is established.</text> </level> <level label="b"> <level label="1"> <text>The bond shall run to the Commissioner, as obligee, for the benefit of:</text> <level label="i"> <text>The State; and</text> </level> <level label="ii"> <text>Any consumer who is injured by a violation of this subtitle committed by a registrant.</text> </level> </level> <level label="2"> <text>The bond shall be:</text> <level label="i"> <text>In the amount of $50,000;</text> </level> <level label="ii"> <text>Issued by a surety company that:</text> <level label="1"> <text>Is authorized to do business in the State; and</text> </level> <level label="2"> <text>Holds a certificate of authority issued by the Maryland Insurance Commissioner; and</text> </level> </level> <level label="iii"> <text>Conditioned that the registrant shall comply with all State and federal laws and regulations governing the business of providing debt settlement services.</text> </level> </level> <level label="3"> <text>The liability of the surety:</text> <level label="i"> <text>Shall be continuous;</text> </level> <level label="ii"> <text>May not be aggregated or cumulative, whether or not the bond is renewed, continued, replaced, or modified;</text> </level> <level label="iii"> <text>May not be determined by adding together the penal sum of the bond, or any part of the penal sum of the bond, in existence at any two or more points in time;</text> </level> <level label="iv"> <text>Shall be considered to be one continuous obligation, regardless of increases or decreases in the penal sum of the bond;</text> </level> <level label="v"> <text>May not be affected by:</text> <level label="1"> <text>The insolvency or bankruptcy of the registrant;</text> </level> <level label="2"> <text>Any misrepresentation, breach of warranty, failure to pay a premium, or any other act or omission of the registrant or an agent of the registrant; or</text> </level> <level label="3"> <text>The suspension of the registrant’s registration;</text> </level> </level> <level label="vi"> <text>May not require an administrative enforcement action by the Commissioner as a prerequisite to liability; and</text> </level> <level label="vii"> <text>Shall continue for 3 years after the later of the date on which:</text> <level label="1"> <text>The bond is canceled; or</text> </level> <level label="2"> <text>The registrant, for any reason, ceases to be registered.</text> </level> </level> </level> <level label="4"> <level label="i"> <text>A bond may be canceled by the surety or the registrant by giving notice of cancellation to the Commissioner.</text> </level> <level label="ii"> <text>Notice under subparagraph (i) of this paragraph shall:</text> <level label="1"> <text>Be in writing; and</text> </level> <level label="2"> <text>Be sent by certified mail, return receipt requested.</text> </level> </level> <level label="iii"> <text>A cancellation of a bond under this paragraph is not effective until 90 days after receipt of a notice of cancellation by the Commissioner.</text> </level> </level> <level label="5"> <text>A claim against the bond may be filed with the surety by:</text> <level label="i"> <text>A claimant; or</text> </level> <level label="ii"> <text>The Commissioner for the benefit of a claimant or the State.</text> </level> </level> <level label="6"> <text>If the amount of claims against a bond exceeds the amount of the bond, the surety:</text> <level label="i"> <text>Shall pay the amount of the bond to the Commissioner for pro rata distribution to claimants; and</text> </level> <level label="ii"> <text>Is relieved of liability under the bond.</text> </level> </level> <level label="7"> <text>If the penal amount of a bond is reduced by payment of a claim or judgment, the registrant shall file a new or additional bond with the Commissioner.</text> </level> <level label="8"> <text>A penalty imposed against a registrant under § 2–115(b) of this article or § 13–410 of the Commercial Law Article may be collected and paid from the proceeds of a bond required under this section.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1015" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <level label="a"> <text>On or before March 15 of each year, a registrant shall report to the Commissioner on the debt settlement services business of the registrant conducted during the preceding calendar year.</text> </level> <level label="b"> <text>The annual report shall be on the form that the Commissioner requires.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1016" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <text>A violation of this subtitle is:</text> <level label="1"> <text>An unfair or deceptive trade practice within the meaning of Title 13 of the Commercial Law Article; and</text> </level> <level label="2"> <text>Subject to the enforcement and penalty provisions of Title 13 of the Commercial Law Article.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1017" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="10" subtitle_name="Maryland Debt Settlement Services Act"> <text>This subtitle may be cited as the Maryland Debt Settlement Services Act.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-1101" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="11" subtitle_name="Student Financing Companies"> <level label="a"> <text>In this subtitle the following terms have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Institution of postsecondary education” has the meaning stated in § 10–101 of the Education Article.</text> </level> <level label="2"> <text>“Institution of postsecondary education” includes an institution that:</text> <level label="i"> <level label="1"> <text>Is not accredited by an accredited body recognized and approved by the U.S. Department of Education; or</text> </level> <level label="2"> <text>Is not authorized to operate in the State; and</text> </level> </level> <level label="ii"> <text>Conducts education by correspondence, online, or in person.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>“Student financing” means an extension of credit to a consumer, contractual or otherwise, contingent or absolute, that is:</text> <level label="i"> <text>Not made, insured, or guaranteed under Title IV of the federal Higher Education Act of 1965;</text> </level> <level label="ii"> <text>Extended to a consumer expressly, in whole or in part, for postsecondary educational expenses, regardless of whether the extension of credit is provided by the institution of postsecondary education that the consumer attends; and</text> </level> <level label="iii"> <text>Not a loan secured by real property or a dwelling.</text> </level> </level> <level label="2"> <text>“Student financing” includes:</text> <level label="i"> <text>An extension of credit used to refinance or repay existing student financing or federal student loan debt; and</text> </level> <level label="ii"> <text>Financial obligations in which the repayment amount is equal to a predetermined percentage of a consumer’s future income.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>“Student financing company” means an entity engaged in the business of securing, making, or extending student financing products, or any purchaser, assignee, or holder of student financing products.</text> </level> <level label="2"> <text>“Student financing company” does not include, to the extent that State regulation is preempted by federal law:</text> <level label="i"> <text>A bank, savings bank, savings and loan association, or credit union;</text> </level> <level label="ii"> <text>A wholly owned subsidiary of a bank or credit union; or</text> </level> <level label="iii"> <text>An operating subsidiary where each owner is wholly owned by the same bank or credit union.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1102" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="11" subtitle_name="Student Financing Companies"> <level label="a"> <text>Beginning March 15, 2024, a student financing company shall register with the Commissioner as a student financing company before providing services in the State.</text> </level> <level label="b"> <text>An application for registration shall include:</text> <level label="1"> <text>The student financing company’s name;</text> </level> <level label="2"> <text>The student financing company’s address;</text> </level> <level label="3"> <text>The name of all officers, directors, partners, and owners of controlling interests of the student financing company;</text> </level> <level label="4"> <text>The addresses of all officers, directors, partners, and owners of controlling interests in the student financing company; and</text> </level> <level label="5"> <text>Any other information that the Commissioner requires by regulation.</text> </level> </level> <level label="c"> <text>A student financing company shall renew its registration on an annual basis, and may be required to pay a fee at the time of renewal.</text> </level> <level label="d"> <text>The Commissioner may adopt and enforce:</text> <level label="1"> <text>Registration procedures for student financing companies, which may include the use of NMLS;</text> </level> <level label="2"> <text>Registration fees for student financing companies, which may include fees for the use of NMLS, to be paid directly by the student financing company;</text> </level> <level label="3"> <text>Procedures and fees for renewing a student financing company’s registration, which may include fees for the renewed use of NMLS, to be paid directly by the student financing company; and</text> </level> <level label="4"> <text>Alternate registration procedures and fees for institutions of postsecondary education that offer student financing products.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1103" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="11" subtitle_name="Student Financing Companies"> <level label="a"> <text>On or before March 15, 2024, and March 15 each year thereafter:</text> <level label="1"> <text>A student financing company that secures, makes, or extends student financing in the State shall report to the Commissioner on the form the Commissioner provides:</text> <level label="i"> <text>A list of all schools attended by consumers who received student financing from the student financing company and resided within the State at the time of the transaction and whose debt is still outstanding, including student financing used to refinance an existing debt;</text> </level> <level label="ii"> <text>The total outstanding dollar amount owed by consumers residing in the State who received student financing from the student financing company;</text> </level> <level label="iii"> <text>The total number of student financing products owed by consumers residing in the State who received student financing from the student financing company;</text> </level> <level label="iv"> <text>The total outstanding dollar amount and number of student financing products owed by consumers who reside in the State, associated with each school identified under item (i) of this item;</text> </level> <level label="v"> <text>The total dollar amount of student financing products provided by the student financing company to consumers who resided in the State in the prior fiscal year;</text> </level> <level label="vi"> <text>The total number of student financing products provided by the student financing company to consumers who resided in the State in the prior fiscal year;</text> </level> <level label="vii"> <text>The total outstanding dollar amount and number of student financing products owed by consumers who resided in the State, associated with each school identified under item (i) of this item, that were provided in the prior fiscal year;</text> </level> <level label="viii"> <text>The rate of default for consumers residing in the State who obtained student financing from the student financing company, if applicable;</text> </level> <level label="ix"> <text>The rate of default for consumers residing in the State who obtained student financing from the student financing company associated with each school identified under item (i) of this item, if applicable;</text> </level> <level label="x"> <text>The range of initial interest rates for student financing products provided by the student financing company to consumers who resided in the State in the prior fiscal year;</text> </level> <level label="xi"> <text>Of the total number of consumers who received student financing products under item (x) of this item, the percentage of consumers who received each rate identified under item (x) of this item;</text> </level> <level label="xii"> <text>The total dollar amount and number of student financing products provided in the prior fiscal year by the student financing company to consumers who resided in the State at the time of the transaction and had a cosigner for the student financing product;</text> </level> <level label="xiii"> <text>The total dollar amount and number of student financing products provided by the student financing company to consumers residing in the State used to refinance a prior student financing product or federal student loan in the prior fiscal year;</text> </level> <level label="xiv"> <text>The total dollar amount and number of student financing products for which the student financing company had sued to collect from a consumer residing in the State in the prior fiscal year;</text> </level> <level label="xv"> <text>A copy of any model promissory note, agreement, contract, or other instrument used by the student financing company in the previous fiscal year to substantiate that a consumer owes a new debt to the student financing company; and</text> </level> <level label="xvi"> <text>Any other information considered necessary by the Commissioner to assess the total size and status of the student financing market and well–being of consumers in the State; and</text> </level> </level> <level label="2"> <text>A student financing company that acquires or assumes student financing products in the State shall report to the Commissioner on the form the Commissioner provides:</text> <level label="i"> <text>A list of all schools attended by consumers residing in the State who used, for attendance, any outstanding student financing products assumed or acquired by the student financing company;</text> </level> <level label="ii"> <text>The total outstanding dollar amount and number of student financing products that have been acquired or assumed by the student financing company and owed by consumers who reside in the State;</text> </level> <level label="iii"> <text>The total outstanding dollar amount and number of student financing products owed by consumers who reside in the State that have been assumed or acquired by the student financing company, associated with each school identified under item (i) of this item;</text> </level> <level label="iv"> <text>The total dollar amount and number of student financing products owed by consumers who resided in the State that were acquired or assumed by the student financing company in the prior fiscal year;</text> </level> <level label="v"> <text>The total dollar amount and number of student financing products that were acquired or assumed by the student financing company and owed by consumers who resided in the State in the prior year, associated with each school identified under item (i) of this item;</text> </level> <level label="vi"> <text>The rate of default for student financing products acquired or assumed by the student financing company, if applicable;</text> </level> <level label="vii"> <text>The rate of default for student financing products acquired or assumed by the student financing company associated with each school identified under item (i) of this item, if applicable;</text> </level> <level label="viii"> <text>The total outstanding dollar amount and number of student financing products owed by consumers residing in the State who had a cosigner for the student financing product, if applicable;</text> </level> <level label="ix"> <text>The total outstanding dollar amount and number of student financing products that were acquired or assumed by the student financing company and owed by consumers residing in the State to refinance a prior student financing product or federal student loan;</text> </level> <level label="x"> <text>The total dollar amount and number of student financing products for which the student financing company had sued to collect from consumers residing in the State in the prior fiscal year; and</text> </level> <level label="xi"> <text>Any other information considered necessary by the Commissioner to assess the total size and status of the student financing market and well–being of consumers in the State.</text> </level> </level> </level> <level label="b"> <text>The Commissioner may establish a process for reporting the information required under subsection (a) of this section to avoid the duplicative reporting of information by student financing companies to the Commissioner if a student financing company is required to report the information required under subsection (a) of this section to the Commissioner under another provision of State or federal law.</text> </level> <level label="c"> <text>On or before June 15, 2024, and each June 15 thereafter, the Commissioner shall make the information and documents reported by student financing companies under subsection (a) of this section available on a publicly accessible website developed and maintained by the Commissioner.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1104" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="11" subtitle_name="Student Financing Companies"> <text>The Commissioner may adopt regulations to implement this subtitle.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-1105" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="11" subtitle_name="Student Financing Companies"> <level label="a"> <level label="1"> <text>The Commissioner may use the investigative and enforcement powers provided under §§ 2–113 through 2–116 of this article to enforce this subtitle.</text> </level> <level label="2"> <text>In addition to the Commissioner, the Attorney General or the State’s Attorney for the county in which a violation occurs may enforce the requirements of this subtitle and use the same investigative and enforcement powers applicable to the Commissioner under §§ 2–113 through 2–116 of this article.</text> </level> </level> <level label="b"> <text>A student financing product provided or acquired by a student financing company that is owed by a resident of the State shall be void and unenforceable if the Commissioner finds, after notice and a hearing, that a student financing company has knowingly violated this subtitle, at the time that the product was provided or acquired, by:</text> <level label="1"> <text>Failing to comply with any registration or reporting requirement; or</text> </level> <level label="2"> <text>Furnishing inaccurate information to the Commissioner.</text> </level> </level> <level label="c"> <text>The Commissioner may order a person barred from acting as a stockholder, an officer, a director, a partner, an owner, or an employee of a student financing company for a term of 10 years or less if the person has:</text> <level label="1"> <text>Been found to have knowingly violated any provision of this subtitle or regulation adopted under this subtitle; and</text> </level> <level label="2"> <text>Caused financial harm to a consumer.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1201" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="12" subtitle_name="Virtual Currency Kiosks"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Experienced user” means a person that is not a new user.</text> </level> <level label="c"> <text>“New user” means a person that is transacting with a virtual currency kiosk operator:</text> <level label="1"> <text>For the first time; or</text> </level> <level label="2"> <text>Anytime in the 72 hours immediately following the person’s first transaction with the virtual currency kiosk operator.</text> </level> </level> <level label="d"> <level label="1"> <text>“Virtual currency” means a digital representation of value that:</text> <level label="i"> <text>Is used as a medium of exchange, unit of account, or store of value; and</text> </level> <level label="ii"> <text>Is not currency, as defined in § 12–802 of this title.</text> </level> </level> <level label="2"> <text>“Virtual currency” does not include:</text> <level label="i"> <text>A digital representation of value that can be redeemed for:</text> <level label="1"> <text>Goods, services, discounts, or purchases solely as part of a customer affinity or rewards program with the issuing merchant or other designated merchants, or both; or</text> </level> <level label="2"> <text>Digital units in another customer affinity or rewards program that may not directly or indirectly be converted into, redeemed, or exchanged for money, monetary value, bank credit, or virtual currency; or</text> </level> </level> <level label="ii"> <text>A digital representation of value issued by or on behalf of a publisher that:</text> <level label="1"> <text>Is used solely within an online game, game platform, or family of games sold by the same publisher or offered on the same game platform;</text> </level> <level label="2"> <text>Has no market or application outside of the online game, game platform, or family of games;</text> </level> <level label="3"> <text>May not directly or indirectly be converted into, redeemed, or exchanged for money, monetary value, bank credit, or virtual currency; and</text> </level> <level label="4"> <text>May or may not be redeemable for real–world goods, services, discounts, or purchases.</text> </level> </level> </level> </level> <level label="e"> <text>“Virtual currency kiosk” means a stand–alone automated platform through which a consumer may deposit or receive cash or use a credit or debit card to obtain virtual currency services.</text> </level> <level label="f"> <text>“Virtual currency kiosk operator” or “operator” means:</text> <level label="1"> <text>A person who owns or operates a virtual currency kiosk in the State; or</text> </level> <level label="2"> <text>A person who installs or operates software that enables a stand–alone automated device to provide virtual currency services in the State.</text> </level> </level> <level label="g"> <level label="1"> <text>“Virtual currency service” means:</text> <level label="i"> <text>The conversion of a virtual currency to another form of virtual currency; or</text> </level> <level label="ii"> <text>The purchase, sale, exchange, swap, or transfer of virtual currency by any means.</text> </level> </level> <level label="2"> <text>“Virtual currency service” includes any other activity that the Commissioner identifies as a virtual currency service by regulation.</text> </level> <level label="3"> <text>“Virtual currency service” does not include:</text> <level label="i"> <text>Money transmission, as defined in § 12–401(p) of this title; or</text> </level> <level label="ii"> <text>Accepting or dispensing cash in connection with a credit, deposit, or convenience account.</text> </level> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1202" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="12" subtitle_name="Virtual Currency Kiosks"> <text>This subtitle applies to a virtual currency kiosk operator.</text> </section> <section article="gfi" article_name="Financial Institutions" number="12-1203" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="12" subtitle_name="Virtual Currency Kiosks"> <level label="a"> <text>Beginning January 1, 2026, a virtual currency kiosk operator shall register a virtual currency kiosk with the Commissioner before operating the virtual currency kiosk in the State.</text> </level> <level label="b"> <text>An application for registration shall include:</text> <level label="1"> <text>The name of the virtual currency kiosk operator;</text> </level> <level label="2"> <text>The address of the virtual currency kiosk operator;</text> </level> <level label="3"> <text>Unique identifying information for the virtual currency kiosk, such as the manufacturer name, model number, serial number, or asset tag;</text> </level> <level label="4"> <text>If the virtual currency kiosk operator intends to operate the virtual currency kiosk from any fixed location for more than 30 days in a calendar year, each physical address where the virtual currency kiosk will be operated;</text> </level> <level label="5"> <text>If the virtual currency kiosk operator intends to operate the virtual currency kiosk at any location for 30 days or less in a calendar year, the geographic area where the licensee intends to operate the virtual currency kiosk; and</text> </level> <level label="6"> <text>Any other information that the Commissioner requires by regulation.</text> </level> </level> <level label="c"> <text>A virtual currency kiosk operator:</text> <level label="1"> <text>Shall renew the registration on an annual basis; and</text> </level> <level label="2"> <text>May be required to pay a fee at the time of renewal.</text> </level> </level> <level label="d"> <text>The Commissioner may adopt and enforce:</text> <level label="1"> <text>Registration procedures for virtual currency kiosks, which may include the use of NMLS;</text> </level> <level label="2"> <text>Registration fees for virtual currency kiosks, which may include fees for the use of NMLS, to be paid directly by the virtual currency kiosk operator;</text> </level> <level label="3"> <text>Procedures and fees for renewing a virtual currency kiosk’s registration, which may include fees for the renewed use of NMLS, to be paid directly by the virtual currency kiosk operator;</text> </level> <level label="4"> <text>Regulations regarding the lighting and safety of virtual currency kiosk locations; and</text> </level> <level label="5"> <text>Regulations regarding appropriate signage to clearly identify a kiosk as a virtual currency kiosk.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1204" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="12" subtitle_name="Virtual Currency Kiosks"> <level label="a"> <text>A virtual currency kiosk operator shall ensure that the virtual currency kiosk does not, in connection with virtual currency services for a single person in the State using one or more virtual currency kiosks, accept or dispense in a single day an amount of cash, including value downloaded through prepaid access, as defined in § 12–401 of this title, or the equivalent in credit that exceeds:</text> <level label="1"> <text>For a new user, $2,000; or</text> </level> <level label="2"> <text>For an experienced user, $10,500.</text> </level> </level> <level label="b"> <text>A virtual currency kiosk operator:</text> <level label="1"> <text>May not impose a fee in excess of the greater of:</text> <level label="i"> <text>$5; or</text> </level> <level label="ii"> <text>15% of the amount of a virtual currency service transaction; and</text> </level> </level> <level label="2"> <text>Shall refund any fee imposed on a transaction that is verified as fraudulent in a manner established by the Commissioner through regulation.</text> </level> </level> <level label="c"> <text>A virtual currency kiosk operator shall collect the following information from a person before accepting cash or credit in connection with a virtual currency service from the person:</text> <level label="1"> <text>Name;</text> </level> <level label="2"> <text>Date of birth;</text> </level> <level label="3"> <text>Mailing address;</text> </level> <level label="4"> <text>Electronic mail address;</text> </level> <level label="5"> <text>Phone number; and</text> </level> <level label="6"> <text>A copy of the person’s government–issued identification.</text> </level> </level> <level label="d"> <text>At the end of a virtual currency transaction, the virtual currency kiosk operator shall dispense or display a receipt that includes:</text> <level label="1"> <text>The type of virtual currency sold or purchased;</text> </level> <level label="2"> <text>The value of the virtual currency sold or purchased, including the requisite exchange rate for the virtual currency;</text> </level> <level label="3"> <text>The date and time of the transaction;</text> </level> <level label="4"> <text>Identifying information for the virtual currency kiosk;</text> </level> <level label="5"> <text>The toll–free number for customer support; and</text> </level> <level label="6"> <text>Any other information that the Commissioner requires through regulation.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1205" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="12" subtitle_name="Virtual Currency Kiosks"> <level label="a"> <text>A virtual currency kiosk operator shall ensure that a virtual currency kiosk displays on–screen disclosures before each virtual currency service transaction that disclose all material risks generally associated with virtual currency in clear and conspicuous language.</text> </level> <level label="b"> <text>The on–screen disclosures shall include:</text> <level label="1"> <text>A schedule of fees and charges that may be assessed;</text> </level> <level label="2"> <text>The statement:</text> <text>“Virtual currency is not money or legal tender and is not backed or insured by the government. Virtual currency accounts and value balances are not subject to any protections from the Federal Deposit Insurance Corporation, National Credit Union Administration, or Securities Investor Protection Corporation.”;</text> </level> <level label="3"> <text>The statement:</text> <text>“WARNING: losses due to fraudulent or accidental virtual currency transactions may not be recoverable and transactions in virtual currency are irreversible. Virtual currency transactions may be used by scammers impersonating loved ones, threatening jail time, and insisting you withdraw money from your bank account to purchase virtual currency.”;</text> </level> <level label="4"> <text>The contact information for the virtual currency kiosk operator, including the operator’s name, phone number, address, and hours of operation;</text> </level> <level label="5"> <text>The current exchange rates for each type of virtual currency eligible to be sold or purchased at the virtual currency kiosk; and</text> </level> <level label="6"> <text>Any other information that the Commissioner requires by regulation.</text> </level> </level> <level label="c"> <text>The virtual currency operator shall ensure that a person using the operator’s virtual currency kiosk is required to acknowledge and accept each disclosure before the person may receive virtual currency services.</text> </level> <level label="d"> <text>The Commissioner shall adopt regulations establishing the minimum amount of time that each disclosure must remain on the screen before advancing.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1206" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="12" subtitle_name="Virtual Currency Kiosks"> <text>A virtual currency operator shall maintain live customer support that, at a minimum, is:</text> <level label="1"> <text>Reachable by telephone at a toll–free number; and</text> </level> <level label="2"> <text>Available Monday through Friday between 8 a.m. and 6 p.m.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1207" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="12" subtitle_name="Virtual Currency Kiosks"> <text>A virtual currency kiosk operator shall ensure that the virtual currency kiosk: </text> <level label="1"> <text>Operates solely for the purpose of virtual currency services; and</text> </level> <level label="2"> <text>Does not operate or provide the same services as an automated teller machine as defined under § 1–401 of this article.</text> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1208" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="12" subtitle_name="Virtual Currency Kiosks"> <level label="a"> <text>The Commissioner may use the investigative and enforcement powers under §§ 2–113 through 2–116 of this article to enforce this subtitle.</text> </level> <level label="b"> <level label="1"> <text>Subject to paragraphs (2) and (3) of this subsection, the Commissioner may impose the penalties under §§ 2–113 through 2–116 of this article for a violation of this subtitle.</text> </level> <level label="2"> <text>The Commissioner may assess against a virtual currency kiosk operator a civil penalty not exceeding $1,000 for each knowing and willful violation of this subtitle.</text> </level> <level label="3"> <text>Each day that a violation occurs or continues is a separate violation.</text> </level> </level> </section> <section article="gfi" article_name="Financial Institutions" number="12-1209" title_number="12" title_name="Miscellaneous Institutions and Activities" subtitle_number="12" subtitle_name="Virtual Currency Kiosks"> <text>The Commissioner shall adopt regulations to carry out this subtitle.</text> </section>