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§ 5-1110. Suspension or revocation of registration; civil penalties

West's Annotated Code of MarylandCourts and Judicial ProceedingsEffective: October 1, 2016

West's Annotated Code of Maryland
Courts and Judicial Proceedings
Title 5. Limitations, Prohibited Actions, and Immunities (Refs & Annos)
Subtitle 11. Structured Settlements (Refs & Annos)
Effective: October 1, 2016
MD Code, Courts and Judicial Proceedings, § 5-1110
§ 5-1110. Suspension or revocation of registration; civil penalties
In general
(a) The Attorney General may suspend or revoke the registration of a structured settlement transferee, or deny an application for registration, if the Attorney General finds that the transferee or any of its employees, affiliates, or agents has:
(1) Directly or indirectly paid any fee or charge to any person as an inducement to refer a payee to the transferee in connection with a transfer subject to this subtitle;
(2) Directly or indirectly offered or provided any gift to a payee or a member of a payee's family in connection with a transfer subject to this subtitle;
(3) Directly or indirectly offered any loan, extension of credit, or advance to a payee or a member of a payee's family as an inducement to transfer structured settlement payment rights;
(4) Made any referral of a payee for independent professional advice concerning a proposed transfer subject to this subtitle other than a referral to a local or state bar association or not-for-profit lawyer referral service unaffiliated with any structured settlement transferee that makes referrals to attorneys, certified public accountants, or licensed financial consultants;
(5) Communicated with a payee or a person related to a payee with obscene or grossly abusive language, with the frequency, at unusual hours, or in any other manner as reasonably can be expected to abuse or harass the payee in connection with a transfer subject to this subtitle;
(6) Engaged in any unfair or deceptive trade practice, under § 13-301 of the Commercial Law Article;
(7) Conducted business in the State related to the transfer of structured settlement payment rights in any name other than the name or trade name registered with the Attorney General;
(8) With respect to a transferee, its affiliates, directors, members, general partners, officers, or executive, managerial, professional, or sales and marketing employees, been convicted of a crime involving dishonesty, deception, or moral turpitude;
(9) Been found by a court of competent jurisdiction or a government agency to have committed fraud, engaged in unfair trade practices, or committed any other civil wrong or regulatory violation involving dishonesty or deception; or
(10) Otherwise failed to comply with the provisions of this subtitle in connection with a transfer subject to this subtitle.
Civil penalties
(b) In addition to, or instead of, denying an application for registration, or suspending or revoking the registration of any registrant, the Attorney General may impose a civil penalty for each violation of this subtitle in an amount not exceeding:
(1) $1,000 for a first violation; and
(2) $5,000 for each subsequent violation.
Considerations
(c) In determining whether to deny an application for registration or suspend or revoke the registration of a registrant, or the amount of any civil penalty to be imposed, the Attorney General shall consider:
(1) The seriousness of the violation;
(2) The good faith of the transferee;
(3) Any history of previous violations; and
(4) Any other factor relevant to the determination.
Notice
(d)(1) The Attorney General shall provide to a registrant notice and an opportunity to request a hearing under Title 10, Subtitle 2 of the State Government Article to contest a proposed disciplinary action under this section, except that the Attorney General may delegate the authority to conduct a hearing to a deputy or assistant attorney general.
(2) Any party aggrieved by a decision and order of the Attorney General under this section and § 5-1108 of this subtitle may petition for judicial review as provided under §§ 10-222 and 10-223 of the State Government Article.

Credits

Added by Acts 2016, c. 721, § 2, eff. Oct. 1, 2016; Acts 2016, c. 722, § 2, eff. Oct. 1, 2016.
MD Code, Courts and Judicial Proceedings, § 5-1110, MD CTS & JUD PRO § 5-1110
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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