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Statutes Text

Article - Financial Institutions


    (a)    (1)    To apply for a license, an applicant shall:

            (i)    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

            (ii)    Provide all the information that the Commissioner requests.

        (2)    The application shall include:

            (i)    The applicant’s name, the applicant’s principal executive office address, and, if the applicant is not an individual, the name and residence address of each control person;

            (ii)    The address of each branch location, if any; and

            (iii)    Any other pertinent information that the Commissioner requires for an investigation and findings under § 11–207 of this subtitle.

    (b)    With the application, the applicant shall pay to the Commissioner:

        (1)    An investigation fee of $100; and

        (2)    A license fee of $850.

    (c)    (1)    With the application, the applicant shall file a surety bond.

        (2)    The bond shall run to the Commissioner, as obligee, for the benefit of:

            (i)    The State; and

            (ii)    Any person who has a cause of action against the applicant under the Maryland Consumer Loan Law.

        (3)    The bond shall be:

            (i)    In an amount equal to twice the amount of the largest loan that may be made under the Maryland Consumer Loan Law;

            (ii)    Issued by a surety company that:

                1.    Is authorized to do business in the State; and

                2.    Holds a certificate of authority issued by the Maryland Insurance Commissioner; and

            (iii)    Conditioned that the licensee shall:

                1.    Comply with the Maryland Consumer Loan Law; and

                2.    Pay to the State or to any person any money that the licensee may owe to the State or to the person under the Maryland Consumer Loan Law.

        (4)    The liability of the surety:

            (i)    Shall be continuous;

            (ii)    May not be aggregated or cumulative, whether or not the bond is renewed, continued, replaced, or modified;

            (iii)    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;

            (iv)    Shall be considered to be one continuous obligation, regardless of increases or decreases in the penal sum of the bond;

            (v)    May not be affected by:

                1.    The insolvency or bankruptcy of the licensee;

                2.    Any misrepresentation, breach of warranty, failure to pay a premium, or any other act or omission of the licensee or an agent of the licensee; or

                3.    The suspension of the licensee’s license;

            (vi)    May not require an administrative enforcement action by the Commissioner as a prerequisite to liability; and

            (vii)    Shall continue for 3 years after the later of the date on which:

                1.    The bond is canceled; or

                2.    The licensee, for any reason, ceases to be licensed.

        (5)    (i)    A bond may be canceled by the surety or the licensee by giving notice of cancellation to the Commissioner.

            (ii)    Notice under subparagraph (i) of this paragraph shall:

                1.    Be in writing; and

                2.    Be sent by certified mail, return receipt requested.

            (iii)    A cancellation of a bond under this paragraph is not effective until 90 days after receipt of a notice of cancellation by the Commissioner.

        (6)    A claim against the bond may be filed with the surety by:

            (i)    A claimant; or

            (ii)    The Commissioner for the benefit of a claimant or the State.

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

            (i)    Shall pay the amount of the bond to the Commissioner for pro rata distribution to claimants; and

            (ii)    Is relieved of liability under the bond.

        (8)    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.

        (9)    A penalty imposed against a licensee under § 2–115(b) of this article may be collected and paid from the proceeds of a bond required under this subsection.

    (d)    For the principal executive office and each branch location license for which an applicant applies, the applicant shall:

        (1)    Submit a separate application; and

        (2)    Pay a separate investigation fee and license fee.

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