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§ 21-101. Authority of surety insurers to execute bonds or guaranties

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 21. Surety Insurance
MD Code, Insurance, § 21-101
§ 21-101. Authority of surety insurers to execute bonds or guaranties
In general
(a) A surety insurer qualified to act as surety or guarantor under this article may execute:
(1) a bond, undertaking, recognizance, or other obligation that is required or allowed to be made, given, tendered, or filed with a surety by law or in the charter, ordinances, rules, or regulations of a municipal corporation, board, body, organization, court, judge, or public officer; and
(2) a guaranty of the performance of an act, duty, or obligation, or the refraining from an act, that is required or allowed to be guaranteed.
Compliance with law, charter, ordinance, rule, or regulation relating to surety
(b) The execution by a qualified surety insurer of a bond, undertaking, recognizance, obligation, or guaranty is in full compliance with each requirement of each law, charter, ordinance, rule, or regulation that:
(1) the bond, undertaking, recognizance, obligation, or guaranty shall be executed by a surety; or
(2) the surety shall be a resident, householder, or freeholder, or either or both, or shall have any other qualifications.
Acceptance of bond or guaranty
(c) Each court, judge, department head, board, body, municipal corporation, and public officer shall accept a bond, undertaking, recognizance, obligation, or guaranty executed by a qualified surety insurer and treat it as conforming to and fully complying with each requirement of each applicable law, charter, ordinance, rule, or regulation.
Terms and conditions for release from liability
(d) A surety insurer may be released from its liability on a bond, undertaking, recognizance, obligation, or guaranty executed under subsection (a) of this section on the same terms and conditions provided by law for the release of an individual surety.

Credits

Added by Acts 1996, c. 11, § 1, eff. Oct. 1, 1997.
Formerly Art. 48A, §§ 483, 484.
MD Code, Insurance, § 21-101, MD INSURANCE § 21-101
Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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