Regulation .16 Bonds, Letters of Credit, and Trust Accounts.
Regulation .16 Bonds, Letters of Credit, and Trust Accounts.LinkCopy Citation
A.
The required amount of a bond, letter of credit, or trust account established to meet the requirements of Financial Institutions Article, §11-508, Annotated Code of Maryland, shall be subject to recalculation at the time a license is renewed.
B.
Restitution awarded and to be paid from a letter of credit or trust account shall be paid as follows:
(1)
Awards resulting from individual complaints shall be paid in the order in which they are received by the Commissioner;
(2)
Awards resulting from an examination by the Commissioner that will exceed the total available under the letter of credit or trust account shall be paid on a pro rata basis;
(3)
Claims against a letter of credit or trust account shall be filed by a claimant with the Commissioner within 3 years after the occurrence from which the claim arises; and
(4)
Notwithstanding §C(1) of this regulation, if the aggregate amount of all pending claims exceeds the amount of the letter of credit or trust account, the Commissioner may require a prorated distribution.
C.
The Commissioner may require part or all of the funds in a letter of credit or trust account to remain on deposit if:
(1)
There are unresolved pending claims against the account or letter of credit, which were timely filed; and
(2)
The amount required by the Commissioner to be maintained is reasonably calculated to cover the payment of those claims.
D.
Claims against a bond, letter of credit, or trust account may not include:
(1)
Attorneys' fees;
(2)
Damages for personal injury; or
(3)
Punitive damages.
E.
A surety under a bond issued under Financial Institutions Article, §11-508, Annotated Code of Maryland, shall:
(1)
Pay directly to a claimant any meritorious claim; and
(2)
Immediately notify the Commissioner when it pays a claim to a claimant.