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Maryland Code, Financial Institutions § 1-206

Current as of January 01, 2025 | Updated by Findlaw Staff

(a) In this section, “fiduciary deposit surety bond” means a surety bond that:

(1) Guarantees the payment of deposited funds awaiting distribution or investment held by a financial institution in a fiduciary capacity; and

(2) Subject to the terms and conditions of the bond, is irrevocable and absolute.

(b) Except as provided in §§ 6-202 and 6-209 of the State Finance and Procurement Article, if applicable law requires a deposit made by a financial institution to be collateralized, the financial institution may take as collateral for the deposit, in addition to any other permissible collateral, a fiduciary deposit surety bond issued by an insurance company authorized to do business in this State, the claims-paying ability of which is rated in the highest category by at least two nationally recognized statistical rating agencies.

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Cite this article: FindLaw.com - Maryland Code, Financial Institutions § 1-206 - last updated January 01, 2025 | https://codes.findlaw.com/md/financial-institutions/md-code-fin-inst-sect-1-206/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

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