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§ 14-115. Trust account or bond required

West's Annotated Code of MarylandBusiness Regulation

West's Annotated Code of Maryland
Business Regulation (Refs & Annos)
Title 14. Business Opportunities, Franchises, and Multilevel Distribution Companies (Refs & Annos)
Subtitle 1. Business Opportunities (Refs & Annos)
MD Code, Business Regulation, § 14-115
§ 14-115. Trust account or bond required
Currentness
(a) If a seller guarantees that a buyer will derive from a business opportunity income that will exceed the price paid for the business opportunity or represents that the seller will refund all or part of the price paid or repurchase the products, equipment, or supplies sold or leased by the seller if the buyer is not satisfied with the business opportunity, the seller shall:
(1) get a surety bond in favor of the State from a surety company authorized to do business in the State; or
(2) establish a trust account in favor of the State with an insured bank or savings institution in the State.
(b) The amount of the bond or trust account shall be at least $50,000.
(c)(1) A person may bring an action against the bond or trust account to recover damages resulting from:
(i) a violation of this subtitle; or
(ii) the seller's breach of the contract for the sale of a business opportunity.
(2) The surety or trustee is liable only for actual damages up to the amount of the bond or trust account.

Credits

Added by Acts 1992, c. 4, § 2. Amended by Acts 1992, c. 26, § 4; Acts 1996, c. 517, § 1, eff. Oct. 1, 1996.
Formerly Art. 56, § 409.
MD Code, Business Regulation, § 14-115, MD BUS REG § 14-115
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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