Home Table of Contents

§ 10-303. Irrevocable letters of credit

West's Annotated Code of MarylandReal Property

West's Annotated Code of Maryland
Real Property (Refs & Annos)
Title 10. Sales of Property (Refs & Annos)
Subtitle 3. Deposits on New Homes (Refs & Annos)
MD Code, Real Property, § 10-303
§ 10-303. Irrevocable letters of credit
Currentness
In general
(a) An irrevocable letter of credit obtained under § 10-301 of this subtitle shall be:
(1) Payable to the Office of the Attorney General for the use and benefit of every person protected by the provisions of this subtitle; and
(2) In a form approved by the Consumer Protection Division of the Office of the Attorney General.
Form of credit
(b) An irrevocable letter of credit may be either in the form of an individual letter of credit for each deposit accepted by a vendor or builder or if the total amount of money and deposits accepted by the builder exceeds $10,000, the letter of credit may be in the form of a blanket letter of credit assuring the return of the deposits received by the vendor or builder.
Schedule for amount of letters of credit
(c) If the letter of credit is a blanket letter of credit, the amount of the letter of credit shall be in accordance with the following schedule:
Total Amount of Deposit Held
Amount of Letter of Credit
(1) $10,000 to $75,000
Full amount of
Deposit held
(2) $75,000 to $200,000
$75,000
(3) $200,000 to $500,000
$200,000
(4) Over $500,000
$500,000
Determination of total amount of deposits
(d) For the purpose of determining the amount of any blanket letter of credit which the vendor or builder maintains in any calendar year, the total amount of deposits considered held by a vendor or builder shall be determined as of May 31 of any given calendar year and the amount of the letter of credit shall be in accordance with the amount of deposits held as of May 31.

Credits

Added by Acts 1989, c. 563, § 1, eff. July 1, 1989. Amended by Acts 1995, c. 120, § 19, eff. July 1, 1995; Acts 1998, c. 144, § 1, eff. Oct. 1, 1998; Acts 2002, c. 492, § 1, eff. July 1, 2002.
MD Code, Real Property, § 10-303, MD REAL PROP § 10-303
Current through legislation effective through April 25, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document