Section 6-303 - Surety bond; irrevocable letter of credit.
§ 6-303. Surety bond; irrevocable letter of credit.
(a) $25,000 bond required.-
(1) Except as provided in subsection (c) of this section, on applying for registration as a professional solicitor, an applicant shall execute and submit to the Secretary of State a bond in the sum of $25,000, with surety that the Secretary of State approves.
(2) The bond shall run to the State for the use of the State and each person who may have a cause of action against the applicant for loss resulting from malfeasance, nonfeasance, or misfeasance in the applicant's charitable solicitation.
(3) The applicant shall keep the bond in force as long as the registration is in effect.
(b) Consolidated bond allowed.- An applicant for registration as a professional solicitor shall submit a consolidated bond for all of the officers, agents, members, associate solicitors, subcontractors, and employees of the professional solicitor.
(c) Irrevocable letters of credit.- An applicant for registration as a professional solicitor that submits a $25,000 irrevocable letter of credit to the Secretary of State is not required to submit a surety bond under subsection (a) of this section.
(d) Return of bond or irrevocable letter of credit.- The Secretary of State may return a bond or irrevocable letter of credit filed under this section only if:
(1) 3 years have passed since the registration period to which the bond or letter applies, and there is no pending claim against the bond or letter; or
(2) the registration period to which the bond or letter applies is over, all required accounting reports have been properly completed and filed, and it appears to the satisfaction of the Secretary of State that the person is not in violation of the Maryland Charitable Solicitations Act.
(e) Notice that person may apply after registration period.- The Secretary of State shall include with an application for registration as a professional solicitor a notice that a person may apply for return of a bond or irrevocable letter of credit after the registration period to which the bond or letter applies.
[An. Code 1957, art. 41, § 3-207; 1992, ch. 4, § 2; 1996, ch. 371; 1997, ch. 13.]