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§ 17-411. Licensee reimbursement of Guaranty Fund

West's Annotated Code of MarylandBusiness Occupations and Professions

West's Annotated Code of Maryland
Business Occupations and Professions
Title 17. Real Estate Brokers (Refs & Annos)
Subtitle 4. Real Estate Guaranty Fund (Refs & Annos)
MD Code, Business Occupations & Professions, § 17-411
§ 17-411. Licensee reimbursement of Guaranty Fund
Currentness
In general
(a) After payment of a claim by the Guaranty Fund, a licensee who the Commission finds responsible for the act or omission that gave rise to the claim shall reimburse the Guaranty Fund in full for:
(1) the amount paid by the Guaranty Fund; and
(2) interest on the amount paid by the Guaranty Fund at an annual rate of at least 10%, as set by the Commission.
Joint and several liability
(b) Each licensee who the Commission finds responsible for the act or omission that gave rise to a claim is jointly and severally liable for the claim.
Failure to reimburse Fund
(c) If a licensee does not reimburse the Guaranty Fund as provided in subsection (a) of this section, the Commission or the State Central Collection Unit, as assignee of the Commission, may bring an action against the licensee for the amount that has not been reimbursed.
Judgment for amount not reimbursed to Fund
(d) The Commission or the State Central Collection Unit, as assignee of the Commission, shall be entitled to a judgment for the amount that the licensee has not reimbursed the Guaranty Fund if the Commission proves that:
(1) payment was made by the Guaranty Fund based on an act or omission for which the Commission found the licensee was responsible;
(2) a period of at least 30 days has passed since payment was made by the Guaranty Fund; and
(3) the licensee has not reimbursed the Guaranty Fund for the amount for which the judgment is sought.
Liens in favor of the State
(e)(1) If a person liable for reimbursing the Guaranty Fund under this section receives a demand for reimbursement and fails to reimburse the Fund, the reimbursement amount and any accrued interest or cost are a lien in favor of the State on any real property of the person if the lien is recorded and indexed as provided in this subsection.
(2) The lien in favor of the State created by this subsection may not attach to specific property until the State Central Collection Unit records written notice of the lien in the office of the clerk of the court for the county in which the property subject to the lien or any part of the property is located.
(3) The lien in favor of the State created by this subsection does not have priority as to any specific property over any person who is a lienholder of record at the time the notice required under paragraph (2) of this subsection is recorded.
(4) The notice required under paragraph (2) of this subsection shall contain the name and address of the person against whose property the lien exists, the amount of the lien, a description of or reference to the property subject to the lien, and the date the Guaranty Fund paid the claim giving rise to the lien.
(5) Upon presentation of a release of any lien in favor of the State created by this subsection, the clerk of the court in which the lien is recorded and indexed shall record and index the release and shall note in the lien docket the date the release is filed and the fact that the lien is released.
(6) The notice required under paragraph (2) of this subsection and any release filed under paragraph (5) of this subsection shall be indexed with the judgment lien records maintained by the office of the clerk of the court where the notice is recorded.
(7) The clerk may collect a reasonable fee for recording and indexing each notice of lien or release of any lien under this subsection.
Exceptions to discharge of lien
(f) For the purpose of excepting to a discharge of a licensee under 11 U.S.C. § 523, the Commission or the State Central Collection Unit, as assignee of the Commission, is a creditor of the licensee for the amount that was paid by the Guaranty Fund but that has not been reimbursed by the licensee.

Credits

Added by Acts 1989, c. 3, § 1, eff. Oct. 1, 1989. Renumbered from Business Occupations and Professions § 16-411 by Acts 1994, c. 3, § 13, eff. Feb. 28, 1994.
Formerly Art. 56A, § 4-411.
MD Code, Business Occupations & Professions, § 17-411, MD BUS OCCUP & PROF § 17-411
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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