Applicants must file a surety bond with the Commissioner of Financial Regulation. The amount of the surety bond will not be less than $150,000 and not more than $1,000,000 as determined by the Commissioner. The factors used to determine the amount of the surety bond are set forth in
Md. Financial Institutions Code Ann.,
§12-914(b)(5).
The applicant's name and address must appear on the surety bond and the bond should be "continuous until cancelled."
The bond form that must be completed by the surety company is provided in the back of the application package.
Note: This chart is a general guide for applicants to use when determining the bond amount. The Commissioner may require a greater bond amount based on the financial condition and business experience of the applicant or its agent; the potential loss to consumers who remit funds to the applicant or licensee if the applicant or licensee becomes financially impaired; and any other factor the Commissioner considers appropriate. However, in no event will the bond be more than $1,000,000. If the amount of the surety bond is ever reduced by a payment of a claim or judgment, the Commissioner may require that the licensee file a new or additional surety bond in an amount set by the Commissioner.
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