WES MOORE, Governor Ch. 567
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Chapter 567
(House Bill 686)
AN ACT concerning
Financial Regulation – Modernizing Licensing of Non–Depository Institutions
and Elimination of Branch License Requirements
FOR the purpose of eliminating requirements for collection agencies and certain
non–depository financial institutions to maintain separate licenses for branch
locations and authorizing them to conduct business at multiple licensed locations
under a single license; altering certain other requirements and provisions governing
the licensing and regulation of collection agencies and certain non–depository
financial institutions, including applications, Nationwide Mortgage Licensing
System and Registry (NMLS) information, use of trade names, examination,
Commissioner of Financial Regulation assessments, and bond requirements; and
generally relating to the licensing of financial services providers.
BY repealing and reenacting, with amendments,
Article – Business Regulation
Section 7–101, 7–206, 7–301(c), 7–302(b), (d), and (e), 7–302.1(b), 7–302.2(a),
7–304(c)(1), 7–305, 7–306.1(a) and (c), and 7–308(c)
Annotated Code of Maryland
(2015 Replacement Volume and 2022 Supplement)
BY repealing
Article – Business Regulation
Section 7–302(c) and 7–308(b)
Annotated Code of Maryland
(2015 Replacement Volume and 2022 Supplement)
BY adding to
Article – Business Regulation
Section 7–302.2(c) and 7–304(j)
Annotated Code of Maryland
(2015 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, with amendments,
Article – Commercial Law
Section 14–1216(d) and (e)
Annotated Code of Maryland
(2013 Replacement Volume and 2022 Supplement)
BY adding to
Article – Financial Institutions
Section 2–120, 2–121, 11–203.1(b), 11–203.3(c), 11–206(d), 11–208, 11–211, Ch. 567 2023 LAWS OF MARYLAND
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11–402.1(c), 11–408, 11–411, 11–501(f–1) and (f–2), 11–503.2(c), 11–508(c),
12–104.1(c), 12–110, 12–113, 12–401(k) and (l), 12–404(c), 12–407(b)(1),
12–415(a), 12–905(c), and 12–914(f)
Annotated Code of Maryland
(2020 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, with amendments,
Article – Financial Institutions
Section 11–201, 11–203.3(a), 11–204(a) and (c)(2), 11–206(a)(2) and (c)(3)(i),
11–210(b)(1) and (c), 11 –401, 11–402.1(a), 11–403(b),
11–404(a)(2), 11–406(a), 11–410(b)(1) and (c), 11–414, 11–503.1(b),
11–503.2(a), 11–505, 11–506.1(b) through (e), 11–507, 11–508(a) and (e)
through (g), 11–511(a), (c), and (d), 11–512, 11–512.1(a) and (c), 11–513,
11–601(f), 11–602(c), 11–612.1, 12–101, 12–104.1(a), 12–105(b), 12–106,
12–108(a)(2), 12–112(b)(1) and (c), 12–114(c), 12–118, 12–401(c) and (k–1),
12–404(a), 12–406(a)(3), 12–407(b)(2), 12–410, 12–412(a) and (d),
12–424, 12–901, 12–904, 12–905(a), 12–906(b), 12–908(b)(1) and (2), 12–911,
12–914(b)(2)(i), 12–915, 12–923(b)(1), 12–924(a), (c), and (d), and 12–1007(a)
Annotated Code of Maryland
(2020 Replacement Volume and 2022 Supplement)
BY repealing
Article – Financial Institutions
Section 11–203.1(b), 11–206(d), 11–208, 11–211, 11–404(c), 11–408, 11–411,
11–508(c) and (d), 11–610, 12–108(c), 12–110, 12–113, 12–401(e), 12–407(b)(1)
and (h), 12–415(a), and 12–914(b)(8)
Annotated Code of Maryland
(2020 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, without amendments,
Article – Financial Institutions
Section 11–501(a), 11–601(a), and 12–401(a)
Annotated Code of Maryland
(2020 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, without amendments,
Article – State Finance and Procurement
Section 6–226(a)(2)(i)
Annotated Code of Maryland
(2021 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 6–226(a)(2)(ii)170. and 171.
Annotated Code of Maryland
(2021 Replacement Volume and 2022 Supplement) WES MOORE, Governor Ch. 567
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BY adding to
Article – State Finance and Procurement
Section 6–226(a)(2)(ii)172.
Annotated Code of Maryland
(2021 Replacement Volume and 2022 Supplement)
BY renumbering
Article – Financial Institutions
Section 12–401(f) through (k) and (l) through (v)
to be Section 12–401(e) through (j) and (n) through (x), respectively
Annotated Code of Maryland
(2020 Replacement Volume and 2022 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Business Regulation
7–101.
(a) In this title the following words have the meanings indicated.
(b) “Board” means the State Collection Agency Licensing Board.
(c) [“Branch location” means any location other than the principal executive office
of a licensee or license applicant at which a person does business as a collection agency or,
on licensure, will do business as a collection agency, in the State or with a person in the
State.
(d)] “Collection agency” means a person who engages directly or indirectly in the
business of:
(1) (i) collecting for, or soliciting from another, a consumer claim; or
(ii) collecting a consumer claim the person owns, if the claim was in
default when the person acquired it;
(2) collecting a consumer claim the person owns, using a name or other
artifice that indicates that another party is attempting to collect the consumer claim;
(3) giving, selling, attempting to give or sell to another, or using, for
collection of a consumer claim, a series or system of forms or letters that indicates directly
or indirectly that a person other than the owner is asserting the consumer claim; or
(4) employing the services of an individual or business to solicit or sell a Ch. 567 2023 LAWS OF MARYLAND
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collection system to be used for collection of a consumer claim.
[(e)] (D) “Commissioner” means the Commissioner of Financial Regulation.
[(f)] (E) “Consumer claim” means a claim that:
(1) is for money owed or said to be owed by a resident of the State; and
(2) arises from a transaction in which, for a family, household, or personal
purpose, the resident sought or got credit, money, personal property, real property, or
services.
[(g)] (F) (1) “Control person” means a person who has the power, directly or
indirectly, to direct the management or policies of a collection agency, whether through
ownership of securities, by contract, or otherwise.
(2) “Control person” includes a person who:
(i) is a general partner, an officer, a director, or a member of a
collection agency, or occupies a similar position or performs a similar function;
(ii) directly or indirectly has the right to vote 10% or more of a class
of voting securities, or has the power to sell or direct the sale of 10% or more of a class of
voting securities of a collection agency; or
(iii) in the case of a partnership, a limited partnership, a limited
liability partnership, a limited liability company, or any other business entity:
1. has the right to receive on liquidation or dissolution of a
collection agency 10% or more of the capital of the collection agency; or
2. has contributed 10% or more of the capital of a collection
agency.
[(h)] (G) “License” means a license issued in any form by the Board under this
title to do business as a collection agency, including as provided for through NMLS.
[(h–1) “Licensee” means a person licensed under this title to do business as a
collection agency.]
[(i)] (H) “Licensed collection agency” means a person who is required to be
licensed under this title, regardless of whether the person is actually licensed.
(I) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE LICENSE E
IN NMLS IN ACCORDANCE WITH T HIS TITLE. WES MOORE, Governor Ch. 567
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(J) “LICENSED NAME ” MEANS:
(1) THE LICENSEE’S LEGAL NAME; AND
(2) ANY TRADE NAME USED BY THE LICENSEE IN ACCORDANCE WITH
§ 2–121 OF THE FINANCIAL INSTITUTIONS ARTICLE.
(K) “LICENSEE” MEANS A PERSON LICEN SED UNDER THIS TITLE TO DO
BUSINESS AS A COL LECTION AGENCY .
[(j)] (L) “NMLS” [means a multistate uniform licensing system developed and
maintained by the Conference of State Bank Supervisors, or by a subsidiary or an affiliate
of the Conference of State Bank Supervisors, that may be used for the licensing of persons
required to be licensed by the Board] HAS THE MEANING STAT ED IN § 1–101 OF THE
FINANCIAL INSTITUTIONS ARTICLE.
[(k)] (M) “Unique identifier” means a number or another identifier assigned by
NMLS.
7–206.
[The] EXCEPT AS PROVIDED IN § 7–302.2 OF THIS TITLE, THE Board shall pay
all money collected under this title into the General Fund of the State.
7–301.
(c) A [separate license is required for the principal executive office and each
branch location of a person who does business as a collection agency] LICENSEE MAY DO
BUSINESS AS A COLLEC TION AGENCY ONLY AT A LICENSED LOCATION OR AS
OTHERWISE AUTHORIZED BY REGULATION .
7–302.
(b) An application shall be made under oath and shall include:
(1) the applicant’s LEGAL name, ANY TRADE NAME USED BY THE
APPLICANT IN ACCORDA NCE WITH § 2–121 OF THE FINANCIAL INSTITUTIONS
ARTICLE, AND THE APPLICANT ’S principal executive office address, telephone number,
e–mail address, and Web site addresses, if any;
(2) the address of each [branch] ADDITIONAL location, if any, THAT:
(I) THE GENERAL PUBLIC M AY REASONABLY VIEW A S A Ch. 567 2023 LAWS OF MARYLAND
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LOCATION THAT DOES B USINESS AS A COLLECT ION AGENCY , INCLUDING ANY
LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY
COMMUNICATES WITH CU STOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING;
(II) HOUSES ANY CORE OPER ATIONAL INFRASTRUCTU RE OR
TECHNOLOGY SYSTEMS ;
(III) CONDUCTS ANY CORE MA NAGEMENT, INFORMATION
SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
(IV) IS OTHERWISE REQUIRED TO BE LISTE D IN NMLS BY
REGULATION ADOPTED U NDER THIS TITLE ;
(3) the federal employer identification number or Social Security number
of the applicant, as applicable;
(4) the state of formation and the date of formation of the applicant if the
applicant is a business entity;
(5) the name and residence address of each control person;
(6) the name and address of the principal contact for consumer complaints;
(7) the name, address, and telephone number of the applicant’s resident
agent; and
(8) any other information that the Board requests.
[(c) If an applicant wishes to do business as a collection agency at a branch
location, the applicant shall submit a separate application and pay a separate application
fee and investigation fee for each branch location.]
[(d)] (C) In addition to any other requirement for licensure under this subtitle,
an applicant for a license shall file with the Board a surety bond as required under § 7–304
of this subtitle.
[(e)] (D) The Board shall issue a license to each applicant who meets the
requirements of this subtitle.
7–302.1.
(b) The fees established by the Board under this section AND ANY ANNUAL
ASSESSMENTS IMPOSED BY THE COMMISSIONER UNDER § 2–120 OF THE FINANCIAL
INSTITUTIONS ARTICLE shall be reasonable and set in a manner that will WES MOORE, Governor Ch. 567
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COLLECTIVELY produce funds sufficient to cover the actual direct and indirect costs of
regulating collection agencies in accordance with [the provisions of] this title.
7–302.2.
(a) All revenue received for the licensing AND ASSESSMENT of persons under this
title and any other fee or revenue received by THE COMMISSIONER OR the Board under
this title shall be:
(1) credited to the [Nondepository] NON–DEPOSITORY Special Fund
established under [§ 11–610] § 2–120 of the Financial Institutions Article; and
(2) used in accordance with [§ 11–610(c)] § 2–120(D) of the Financial
Institutions Article.
(C) SUBJECT TO § 2–120(H) OF THE FINANCIAL INSTITUTIONS ARTICLE,
THE COMMISSIONER MAY IMPO SE AN ANNUAL ASSESSM ENT ON ANY LICENSEE
UNDER THIS TITLE .
7–304.
(c) The bond shall be:
(1) in the amount [of $5,000] DETERMINED BY THE BOARD UNDER
SUBSECTION (J) OF THIS SECTION ;
(J) (1) THE AMOUNT OF THE SUR ETY BOND REQUIRED UN DER
SUBSECTION (C) OF THIS SECTION SHAL L BE IN AN AMOUNT OF NOT LESS THAN
$50,000 AND NOT MORE THAN $1,000,000, AS DETERMINED BY THE BOARD FOR
EACH LICENSEE .
(2) IN SETTING THE AMOUNT OF THE SURETY BOND , THE BOARD MAY
CONSIDER:
(I) THE NATURE AND VOLUM E OF THE BUSINESS OR PROPOSED
BUSINESS OF THE LICENSEE OR APPL ICANT;
(II) THE FINANCIAL CONDIT ION OF THE LICENSEE OR
APPLICANT, INCLUDING:
1. THE AMOUNT , NATURE, QUALITY, AND LIQUIDITY OF
THE ASSETS OF THE LI CENSEE OR APPLICANT ;
2. THE AMOUNT AND NATUR E OF THE LIABILITIES , Ch. 567 2023 LAWS OF MARYLAND
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INCLUDING CONTINGENT LIABILITI ES, OF THE LICENSEE OR A PPLICANT;
3. THE HISTORY OF AND P ROSPECTS FOR THE LIC ENSEE
OR APPLICANT TO EARN AND RETAIN INCOME ; AND
4. THE POTENTIAL HARM T O CONSUMERS IF THE
APPLICANT OR LICENSE E BECOMES FINANCIALL Y IMPAIRED;
(III) THE QUALITY OF THE O PERATIONS OF THE LIC ENSEE OR
APPLICANT;
(IV) THE QUALITY OF THE M ANAGEMENT OF THE LIC ENSEE OR
APPLICANT;
(V) THE NATURE AND QUALI TY OF EACH CONTROL P ERSON;
AND
(VI) ANY OTHER FACTOR THA T THE BOARD CONSIDERS
RELEVANT.
7–305.
(a) A license authorizes the licensee to do business as a collection agency at [only
the] EACH licensed location AND UNDER EACH LICEN SED NAME, OR AS OTHERWISE
AUTHORIZED BY REGULA TION.
[(b) Subject to § 7–301(c) of this subtitle, a licensee may hold more than 1 license
under this title.
(c) (1) Each license provided for through NMLS shall include the following
information:
(i) the name of the licensee;
(ii) the address at which the business is to be conducted; and
(iii) the unique identifier of the licensee.
(2) The unique identifier of the licensee shall constitute the license number
for the license.]
(B) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY
THE BOARD UNDER THIS SUBT ITLE SHALL INCLUDE T HE FOLLOWING :
WES MOORE, Governor Ch. 567
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(1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY THE
LICENSEE IN ACCORDAN CE WITH § 2–121 OF THE FINANCIAL INSTITUTIONS
ARTICLE;
(2) THE ADDRESS OF THE L ICENSEE’S PRINCIPAL EXECUTIV E OFFICE;
AND
(3) THE ADDRESS OF EACH ADDITIONAL LOCATION , IF ANY, WHERE
THE LICENSEE DOES BU SINESS AND THAT :
(I) THE GENERAL PUBLIC M AY REASONABLY VIEW A S A
LOCATION THAT DOES B USINESS AS A COLLECT ION AGENCY , INCLUDING ANY
LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY
COMMUNICATES WITH CU STOMERS VERBALL Y, ELECTRONICALLY , OR IN WRITING;
(II) HOUSES ANY CORE OPER ATIONAL INFRASTRUCTU RE OR
TECHNOLOGY SYSTEMS ;
(III) CONDUCTS ANY CORE MA NAGEMENT, INFORMATION
SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
(IV) IS OTHERWISE REQUIRED TO BE LISTE D IN NMLS BY
REGULATION .
(C) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN
NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT
ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (B) OF THIS SECTION.
(D) THE UNIQUE IDENTIFIER OF THE LICENSEE SHALL C ONSTITUTE THE
LICENSE NUMBER FOR T HE LICENSE.
(E) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION REQUIRED
TO BE LISTED IN NMLS UNDER SUBSECTION (B) OF THIS SECTION UNLE SS:
(1) THE LICENSEE PROVIDE S TO THE BOARD, THROUGH NMLS AND
IN ACCORDANCE WITH A NY APPLICABLE REGULA TIONS, NOTICE OF THE ADDITI ON,
DELETION, OR MODIFICATION ;
(2) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION
IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE
IN NMLS; AND
(3) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION Ch. 567 2023 LAWS OF MARYLAND
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OTHERWISE COMPLIES W ITH THIS TITLE.
(F) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION REQUIRED TO BE
LISTED IN NMLS UNDER SUBSECTION (B) OF THIS SECTION UNTI L THE LOCATION
IS RECORDED WITH THE IN FORMATION ASSOCIATED WITH THE LICENSEE ’S LICENSE
IN NMLS.
7–306.1.
(a) Each licensee shall conspicuously post, in 48 point or larger type, at [the
licensee’s] EACH licensed location, the following information:
(1) the licensee’s unique identifier; and
(2) a statement advising consumers of the availability of the NMLS
Consumer Access website to verify the licensing status of the licensee.
(c) A licensee is not required to post the information required under subsection
(a) of this section AT A LICENSED LOCATI ON if the licensee does not regularly grant access
to [the] THAT licensed location to members of the general public.
7–308.
[(b) If the Board finds that a ground for suspension or revocation of a license
applies to more than 1 place of business that the licensee operates, the Board may act
against:
(1) each license of the licensee; or
(2) only the licenses to which the ground applies.]
[(c)] (B) In determining whether to reprimand a licensee or to suspend or revoke
a license for a reason described in subsection (a)(2) of this section, the Board shall consider:
(1) the nature of the crime;
(2) the relationship of the crime to the activities authorized by the license;
(3) with respect to a felony, the relevance of the conviction to the fitness
and qualification of the licensee to engage in the collection agency business;
(4) the length of time since the conviction; and
(5) the behavior and activities of the licensee since the conviction.
WES MOORE, Governor Ch. 567
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Article – Commercial Law
14–1216.
(d) Except as provided in § 14–1226 of this subtitle, all fees and other revenues
collected under this subtitle shall be deposited into the [Nondepository]
NON–DEPOSITORY Special Fund established under [§ 11–610] § 2–120 of the Financial
Institutions Article.
(e) The Commissioner may require a consumer reporting agency to register
through [the Nationwide Mortgage Licensing System and Registry] NMLS or through
other means specified by the Commissioner by regulation.
Article – Financial Institutions
2–120.
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “BOARD” MEANS THE STATE COLLECTION AGENCY LICENSING
BOARD ESTABLISHED UND ER TITLE 7 OF THE BUSINESS REGULATION ARTICLE.
(3) “FUND” MEANS THE NON–DEPOSITORY SPECIAL FUND
ESTABLISHED UNDER TH IS SECTION.
(4) “LICENSE” MEANS ANY LICENSE IS SUED BY THE COMMISSIONER
OR THE BOARD UNDER APPLICABL E LAW.
(5) “LICENSE CATEGORY ” REFERS TO ALL LICENS ES ISSUED BY
EITHER THE COMMISSIONER OR TH E BOARD UNDER ANY OF TH E FOLLOWING
PROVISIONS:
(I) TITLE 11, SUBTITLE 2 OF THIS ARTICLE;
(II) TITLE 11, SUBTITLE 3 OF THIS ARTICLE;
(III) TITLE 11, SUBTITLE 4 OF THIS ARTICLE;
(IV) TITLE 11, SUBTITLE 5 OF THIS ARTICLE;
(V) TITLE 11, SUBTITLE 6 OF THIS ARTICLE;
(VI) TITLE 12, SUBTITLE 1 OF THIS ARTICLE; Ch. 567 2023 LAWS OF MARYLAND
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(VII) TITLE 12, SUBTITLE 4 OF THIS ARTICLE;
(VIII) TITLE 12, SUBTITLE 9 OF THIS ARTICLE; OR
(IX) TITLE 7 OF THE BUSINESS REGULATION ARTICLE.
(6) “LICENSED PERSON ” MEANS ANY PERSON REQUIRED BY LAW TO
BE LICENSED BY EITHE R THE COMMISSIONER OR THE BOARD, REGARDLESS OF
WHETHER THE PERSON M AINTAINS THE REQUIRE D LICENSE.
(7) “REGISTERED PERSON ” MEANS ANY PERSON REQ UIRED BY LAW
TO BE REGISTERED BY THE COMMISSIONER OR THE BOARD, REGARDLESS OF
WHETHER THE PERSON M AINTAINS THE REQUIRE D REGISTRATION .
(8) “REGULATED PERSON ” MEANS:
(I) A LICENSED PERSON OR R EGISTERED PERSON ; OR
(II) ANY PERSON OTHERWISE ENGAGING IN ACTIVITY SUBJECT
TO A PROVISION OF LA W, REGULATION , RULE, OR ORDER OVER WHICH THE
COMMISSIONER HAS JURI SDICTION, OTHER THAN ACTIVITY SUBJECT TO ANY OF
TITLES 3 THROUGH 9 OF THIS ARTICLE.
(B) THERE IS A NON–DEPOSITORY SPECIAL FUND THAT CONSISTS OF :
(1) ALL REVENUES RECEIVED FROM LICENSING FEES FROM EACH
LICENSED PERSON ;
(2) ALL REVENUES RECEIVED FROM REGISTRATION FE ES FROM
EACH REGISTERED PERS ON;
(3) ALL REVENUES RECEIVED FROM ANNUAL ASSESSME NTS UNDER
SUBSECTION (H) OF THIS SECTION;
(4) INCOME FROM THE INVES TMENTS THAT THE STATE TREASURER
MAKES FOR THE FUND; AND
(5) ANY OTHER FEE , EXAMINATION OR INVES TIGATION FEE OR
ASSESSMENT , OR REVENUE RECEIVED BY THE COMMISSIONER OR THE BOARD WITH
RESPECT TO ANY REGUL ATED PERSON .
WES MOORE, Governor Ch. 567
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(C) NOTWITHSTANDING SUBSE CTION (B) OF THIS SECTION:
(1) THE COMMISSIONER AND THE BOARD SHALL PAY ALL F INES AND
PENALTIES COLLECTED FROM ANY REGULATED P ERSON INTO THE GENERAL FUND
OF THE STATE; AND
(2) REVENUE RECEIVED BY T HE COMMISSIONER FOR USE OF THE
FORECLOSED PROPERTY REGISTRY ESTABLISHED UNDER TITLE 7 OF THE REAL
PROPERTY ARTICLE SHALL BE PAID BY THE COMMISSIONER TO THE FORECLOSED
PROPERTY REGISTRY FUND ESTABLISHED UNDE R § 7–105.14 OF THE REAL
PROPERTY ARTICLE.
(D) THE PURPOSE OF THE FUND IS TO COV ER THE DIRECT AND IN DIRECT
COSTS OF FULFILLING THE STATUTORY AND RE GULATORY DUTIES OF T HE
COMMISSIONER AND THE BOARD RELATED TO REGU LATED PERSONS .
(E) (1) THE ANNUAL STATE BUDGET SHALL IN CLUDE THE COSTS AND
EXPENSES OF THE COMMISSIONER AND THE BOARD RELA TING TO SUBSECTION (D)
OF THIS SECTION.
(2) ANY EXPENDITURES FROM THE FUND TO COVER COSTS A ND
EXPENSES OF THE COMMISSIONER AND THE BOARD RELATING TO SUB SECTION (D)
OF THIS SECTION MAY BE MADE ONLY :
(I) WITH AN APPROPRIATION FROM THE FUND APPROVED BY
THE GENERAL ASSEMBLY IN THE ANNUA L STATE BUDGET ; OR
(II) BY THE BUDGET AMENDME NT PROCEDURE UNDER § 7–209
OF THE STATE FINANCE AND PROCUREMENT ARTICLE.
(3) IF, IN ANY FISCAL YEAR , THE AMOUNT OF THE RE VENUE
COLLECTED BY THE COMMISSIONER AND THE BOARD AND DEPOSITED INTO T HE
FUND EXCEEDS THE ACTU AL APPROPRIATION FOR THE COMMISSIONER AND THE
BOARD UNDER PARAGRAPH (2)(I) OF THIS SUBSECTION , THE EXCESS AMOUNT
SHALL BE CARRIED FOR WARD WITHIN THE FUND.
(F) (1) THE STATE TREASURER IS THE CUST ODIAN OF THE FUND.
(2) THE STATE TREASURER SHALL DEPOS IT PAYMENTS RECEIVED
FROM THE COMMISSIONER AND THE BOARD INTO THE FUND.
(G) (1) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. Ch. 567 2023 LAWS OF MARYLAND
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(II) THE FUND MAY NOT BE DEEME D A PART OF THE GENERAL
FUND OF THE STATE.
(2) UNLESS OTHERWISE PROV IDED BY LAW, NO PART OF THE FUND
MAY REVERT OR BE CRE DITED TO:
(I) THE GENERAL FUND OF THE STATE; OR
(II) ANY OTHER SPECIAL FUN D OF THE STATE.
(H) (1) IN ORDER TO ENSURE THE FUND CONTAINS SUFFICI ENT
AMOUNTS TO ACHIEVE I TS PURPOSE UNDER SUB SECTION (D) OF THIS SECTION, THE
COMMISSIONER MAY IMPO SE AN ANNUAL ASSESSM ENT ON ANY LICENSED PERSON
NOT MORE THAN ONCE E ACH YEAR.
(2) IN CALCULATING AN ASS ESSMENT WIT H RESPECT TO ANY
LICENSED PERSON , THE COMMISSIONER MAY CONS IDER:
(I) THE COSTS INCURRED BY THE COMMISSIONER OR THE
BOARD IN SUPERVISING LICENSED PERSONS OF THAT LICENSE CATEGOR Y;
(II) THE TYPE OF BUSINESS CONDUCTED IN THE STATE BY THAT
LICENSED PER SON;
(III) THE VOLUME OF BUSINES S THAT LICENSED PERS ON
CONDUCTS IN THE STATE;
(IV) ASSETS OF THE LICENSE D PERSON; AND
(V) ANY OTHER FACTOR THE COMMISSIONER CONSIDER S
APPROPRIATE .
(3) A LICENSED PERSON SHAL L PAY ANY ASSESSMENT IMPOSED
UNDER THIS SECTION TO THE COMMISSIONER WITHIN 30 CALENDAR DAYS AFTER
THE ASSESSMENT IS IM POSED.
(4) (I) FAILURE BY A LICENSED PERSON TO TIMELY PAY AN
ANNUAL ASSESSMENT UN DER THIS SECTION IS A VIOLATION OF THIS SECTION.
(II) THE COMMISSIONER MAY TAKE ACTION FOR THE
VIOLATION AGAINST TH E LICENSED PERSON AN D THE LICENSE UNDER APPLICABLE
LAW. WES MOORE, Governor Ch. 567
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2–121.
(A) BEFORE USING A TRADE NAME T O ENGAGE IN ANY ACTI VITY REQUIRING
A LICENSE OR REGISTRATION FROM THE COMMISSIONER OR THE STATE
COLLECTION AGENCY LICENSING BOARD, THE LICENSED OR REGISTERED PER SON
SHALL:
(1) REGISTER THE TRADE NA ME WITH THE STATE DEPARTMENT OF
ASSESSMENTS AND TAXATION; AND
(2) OBTAIN THE APPROVAL O F THE COMMISSIONER , OR THE STATE
COLLECTION AGENCY LICENSING BOARD IF LICENSED BY THE BOARD, TO USE THE
TRADE NAME BY :
(I) DESIGNATING ON AN ORIGINAL LICENSE OR REGISTRATION
APPLICATION OR ON A LICENSE OR REGISTRAT ION RENEWAL APPLICAT ION
THROUGH NMLS THE TRADE NAME UNDER WHICH THE LICENSED OR REGISTERED
PERSON WILL ENGAGE IN LICENSED A CTIVITY IN THE STATE; OR
(II) IF THE PERSON WISHES TO BEGIN USING A TRADE NAME
BEFORE RENEWING A LI CENSE OR REGISTRATIO N, NOTIFYING THE COMMISSIONER ,
OR THE STATE COLLECTION AGENCY LICENSING BOARD IF LICENSED BY THE
BOARD, IN WRITING BY LISTIN G THE TRADE NAME IN THE PERSON’S NMLS RECORD.
(B) AFTER RECEIVING APPRO VAL FROM THE COMMISSIONER OR FROM THE
STATE COLLECTION AGENCY LICENSING BOARD IF LICENSED BY THE BOARD FOR
THE USE OF A TRADE N AME, THE LICENSED OR REGISTER ED PERSON SHALL :
(1) MAINTAIN REGISTRATION OF THE TRADE NAME IN ACCORDANCE
WITH § 1–406 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE AND ANY
IMPLEMENTING REGULATIONS ;
(2) LIST THE TRADE NAME I N NMLS; AND
(3) IMMEDIATELY NOTIFY THE COMMISSIONER , OR THE STATE
COLLECTION AGENCY LICENSING BOARD IF LICENSED BY THE BOARD, IF THE
PERSON AMENDS , CANCELS, OR OTHERWISE FAILS T O RENEW THE REGISTRATION
OF THE TRADE NAME .
11–201.
(a) In this subtitle the following words have the meanings indicated. Ch. 567 2023 LAWS OF MARYLAND
– 16 –
(b) [“Branch location” means any location other than the principal executive office
of a licensee or license applicant at which the licensee conducts, or the license applicant, on
licensure, will conduct, activities required to be licensed under this subtitle.
(c)] (1) “Control person” means a person who has the power, directly or
indirectly, to direct the management or policies of a licensee or license applicant, whether
through ownership of securities, by contract, or otherwise.
(2) “Control person” includes a person who:
(i) Is a general partner, an officer, or a director of a licensee or
license applicant, or occupies a similar position or performs a similar function;
(ii) Directly or indirectly has the right to vote 10% or more of a class
of voting securities, or has the power to sell or direct the sale of 10% or more of a class of
voting securities of a licensee or license applicant; or
(iii) In the case of a partnership, a limited partnership, a limited
liability partnership, a limited liability company, or any other business entity:
1. Has the right to receive on liquidation or dissolution of a
licensee or license applicant 10% or more of the capital of the licensee or license applicant;
or
2. Has contributed 10% or more of the capital of a licensee or
license applicant.
[(d)] (C) “License” means a license issued in any form by the Commissioner
under this subtitle to make loans under the Maryland Consumer Loan Law, including as
provided for through NMLS.
(D) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE LICENSE E
IN NMLS IN ACCORDANCE WITH T HIS SUBTITLE.
(E) “LICENSED NAME ” MEANS:
(1) THE LICENSEE’S LEGAL NAME; AND
(2) ANY TRADE NAME USED B Y THE LICENSEE IN AC CORDANCE WITH
§ 2–121 OF THIS ARTICLE.
[(d–1)] (F) “Licensee” means a person licensed under this subtitle to make loans
under the Maryland Consumer Loan Law.
WES MOORE, Governor Ch. 567
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[(e)] (G) “Loan” means any loan or advance of money or credit subject to Title
12, Subtitle 3 of the Commercial Law Article, the Maryland Consumer Loan Law – Credit
Provisions, regardless of whether the loan or advance of money or credit is or purports to
be made under Title 12, Subtitle 3 of the Commercial Law Article.
[(f)] (H) “Maryland Consumer Loan Law” means this subtitle and Title 12,
Subtitle 3 of the Commercial Law Article.
[(g)] (I) “Person” includes an individual, corporation, business trust, statutory
trust, estate, trust, partnership, association, two or more persons having a joint or common
interest, or any other legal or commercial entity.
[(h)] (J) “Unique identifier” means a number or another identifier assigned by
NMLS.
11–203.1.
[(b) A separate license is required for the principal executive office of the license
applicant or licensee and each branch location.]
(B) EXCEPT AS OTHERWISE P ROVIDED IN § 11–204 OF THIS SUBTITLE OR
AUTHORIZED BY THE COMMISSIONER BY REGUL ATION, A LICENSEE MAY NOT
ENGAGE IN THE BUSINE SS OF MAKING LOANS A T A LOCATION OTHER T HAN A
LICENSED LOCATION .
11–203.3.
(a) All revenue received for the licensing AND ASSESSMENT of persons under this
subtitle and Subtitle 3 of this title and any other fee or revenue received by the
Commissioner under this subtitle shall be:
(1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund
established under [§ 11–610] § 2–120 of this [title] ARTICLE; and
(2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this [title]
ARTICLE.
(C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY
IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICENSEE UNDE R THIS SUBTITLE.
11–204.
(a) A person may not:
(1) Receive any application for a loan or allow any note or contract for a Ch. 567 2023 LAWS OF MARYLAND
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loan to be signed at any place of business [for which the person does not have a license]
THAT IS NOT A LICENS ED LOCATION;
(2) Conduct any business under the Maryland Consumer Loan Law under
a name different from the [name that appears on the person’s license] LICENSED NAME ;
or
(3) Evade the application of this section by any device, subterfuge, or
pretense of any kind.
(c) Notwithstanding subsections (a) and (b) of this section, for a loan that is to be
secured by residential real property:
(2) Except as provided in item (3) of this subsection, the loan closing shall
be conducted at:
(i) [The lender’s] A licensed location;
(ii) The office of an attorney representing the licensee, the borrower,
the title company, or title insurer in connection with the loan; or
(iii) The office of the title insurer or title agency performing closing
services in connection with the loan; and
11–206.
(a) (2) The application shall include:
(i) The applicant’s LEGAL name[, the] AND ANY TRADE NAME
USED BY THE APPLICAN T IN ACCORDANCE WITH § 2–121 OF THIS ARTICLE;
(II) THE applicant’s principal executive office address[, and, if];
(III) IF the applicant is not an individual, the name and residence
address of each control person;
[(ii)] (IV) The address of each [branch] ADDITIONAL location, if
any, THAT:
1. THE GENERAL PUBLIC MAY REASONABLY VIEW AS A
LOCATION THAT MAKES LOANS, INCLUDING ANY LOCATI ON THAT INVESTIGATES
CUSTOMER COMPLAINTS OR DIRECTLY COMMUNIC ATES WITH CUSTOMERS
VERBALLY, ELECTRONICALLY , OR IN WRITING;
WES MOORE, Governor Ch. 567
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2. HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E
OR TECHNOL OGY SYSTEMS;
3. CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
4. IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; and
[(iii)] (V) Any other pertinent information that the Commissioner
requires for an investigation and findings under § 11–207 of this subtitle.
(c) (3) The bond shall be:
(i) In an amount [equal to twice the amount of the largest loan that
may be made unde r the Maryland Consumer Loan Law ] DETERMINED BY THE
COMMISSIONER UNDER SU BSECTION (D) OF THIS SECTION ;
[(d) For the principal executive office and each branch location license for which
an applicant applies, the applicant shall:
(1) Submit a separate application; and
(2) Pay a separate investigation fee and license fee.]
(D) (1) THE AMOUNT OF THE SUR ETY BOND UNDER SUBSE CTION (C) OF
THIS SECTION SHALL B E IN AN AMOUNT OF NO T LESS THAN $50,000 AND NOT MORE
THAN $200,000, AS DETERMINED BY THE COMMISSIONER FOR EACH LICEN SEE.
(2) IN SETTING THE AMOUNT OF THE SURETY BOND , THE
COMMISSIONER MAY CONS IDER:
(I) THE NATURE AND VOLUME OF THE BUSINESS OR P ROPOSED
BUSINESS OF THE LICE NSEE OR APPLICANT ;
(II) THE FINANCIAL CONDITI ON OF THE LICENSEE O R
APPLICANT, INCLUDING:
1. THE AMOUNT, NATURE, QUALITY, AND LIQUIDITY OF
THE ASSETS OF THE LI CENSEE OR APPLICANT ;
2. THE AMOUNT AND NATURE OF THE LIABILITIES ,
INCLUDING CONTINGENT LIABILITIES, OF THE LICENSEE OR A PPLICANT;
Ch. 567 2023 LAWS OF MARYLAND
– 20 –
3. THE HISTORY OF AN D PROSPECTS FOR THE LICENSEE
OR APPLICANT TO EARN AND RETAIN INCOME ; AND
4. THE POTENTIAL HARM TO CONSUMERS IF THE
APPLICANT OR LICENSE E BECOMES FINANCIALL Y IMPAIRED;
(III) THE QUALITY OF THE OP ERATIONS OF THE LICE NSEE OR
APPLICANT;
(IV) THE QUALITY OF THE MANAGE MENT OF THE LICENSEE OR
APPLICANT;
(V) THE NATURE AND QUALIT Y OF THE PERSON THAT HAS
CONTROL OF THE LICEN SEE OR APPLICANT ; AND
(VI) ANY OTHER FACTOR THAT THE COMMISSIONER CONSIDER S
RELEVANT.
[11–208.
(a) (1) Each license provided for through NMLS shall include the following
information:
(i) The name of the licensee;
(ii) The address of the location at which the business is to be
conducted; and
(iii) The unique identifier of the licensee.
(2) The unique identifier of the licensee shall constitute the license number
for the license.
(b) (1) A license authorizes the licensee to do business under the license, at the
licensed location and under the name stated on the license.
(2) Only one location may be maintained under any one license.
(c) Subject to § 11–203.1(b) of this subtitle, the Commissioner may issue more
than one license to an applicant who:
(1) Conducts activities for which a license is required at more than one
location;
WES MOORE, Governor Ch. 567
– 21 –
(2) Complies with § 11–206 of this subtitle; and
(3) Otherwise meets the requirements of this subtitle.]
11–208.
(A) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY
THE COMMISSIONER UNDER TH IS SUBTITLE SHALL IN CLUDE THE FOLLOWING :
(1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY
THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE;
(2) THE ADDRESS OF THE LI CENSEE’S PRINCIPAL EXECUTIV E
OFFICE; AND
(3) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, WHERE
THE LICENSEE DOES BU SINESS AND THAT:
(I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
LOCATION THAT MAKES LOANS, INCLUDING ANY LOCATI ON THAT INVESTIGATES
CUSTOMER COMPLAINTS OR DIRECTLY COMMUNIC ATES WITH CUSTOMERS
VERBALLY, ELECTRONICALLY , OR IN WRITING;
(II) HOUSES ANY CORE OPERATIONAL INFRASTR UCTURE OR
TECHNOLOGY SYSTEMS ;
(III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
(IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
REGULATION THE COMMISSIONER ADOPTS UNDER THIS SU BTITLE.
(B) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN
NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT
ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (A) OF THIS SECTION.
(C) THE UNIQUE IDENTIFIER OF THE LICENSEE SHAL L CONSTITUTE THE
LICENSE NUMBER FOR T HE LICENSE.
(D) A LICENSE AUTHORIZES T HE LICENSEE TO DO BU SINESS UNDER THE
LICENSE AT ANY LICEN SED LOCATION AND UND ER ANY LICENSED NAME , OR AS
OTHERWISE AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION.
Ch. 567 2023 LAWS OF MARYLAND
– 22 –
11–210.
(b) (1) Each licensee shall conspicuously post, in 48 point or larger type, at
[the licensee’s] EACH licensed location the following information:
(i) The licensee’s unique identifier; and
(ii) A statement advising consumers of the availability of the NMLS
Consumer Access website to verify the licensing status of the licensee.
(c) A licensee is not required to post the information required in subsection (b)(1)
of this section AT A LICENSED LOCATI ON if the licensee does not REGULARLY grant
[regular] access to [the] THAT licensed location to members of the general public.
[11–211.
A licensee may not change the location for which a license is issued unless the
licensee:
(1) Provides to the Commissioner, in the form and in accordance with the
process that the Commissioner requires, notice of the proposed change; and
(2) Receives the written consent of the Commissioner by United States
mail, e–mail, or any means provided through NMLS.]
11–211.
(A) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION REQUIRED
TO BE LISTED IN NMLS UNDER § 11–208(A)(2) OR (3) OF THIS SUBTITLE UNL ESS:
(1) THE LICENSEE PROVIDES TO THE COMMISSIONER , THROUGH
NMLS AND IN ACCORDANCE WI TH ANY REGULATIONS T HE COMMISSIONER ADOPTS ,
NOTICE OF THE AD DITION, DELETION, OR MODIFICATION ;
(2) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION
IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE
IN NMLS; AND
(3) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION
OTHERWISE COMPLIES W ITH THIS SUBTITLE.
(B) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION REQUIRED TO BE
LISTED IN NMLS BY § 11–208(A)(2) OR (3) OF THIS SUBTITLE UNT IL THE LOCATION
IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE WES MOORE, Governor Ch. 567
– 23 –
IN NMLS.
11–401.
(a) In this subtitle the following words have the meanings indicated.
(b) “Agreement” means an installment sale agreement, a renewed or extended
installment sale agreement, and any renewal, extension, or refund agreement made in
connection with an installment sale agreement.
(c) [“Branch location” means any location other than the principal executive office
of a licensee or license applicant at which the licensee conducts, or the license applicant, on
licensure, will conduct, activities required to be licensed under this subtitle.
(d)] (1) “Buyer” means a person who buys or leases goods under an installment
sale agreement, even though the person has entered into one or more renewal, extension,
or refund agreements.
(2) “Buyer” includes a prospective buyer.
[(e)] (D) (1) “Collateral security” means any security interest in,
encumbrance on, or pledge of property or goods that is given to secure performance of an
obligation of a buyer or a surety for a buyer under an agreement.
(2) “Collateral security” includes the undertaking of a surety for a buyer.
(3) “Collateral security” does not include any goods or interest in goods that
are the subject of an installment sale agreement.
[(f)] (E) (1) “Control person” means a person who has the power, directly or
indirectly, to direct the management or policies of a licensee or license applicant, whether
through ownership of securities, by contract, or otherwise.
(2) “Control person” includes a person who:
(i) Is a general partner, an officer, a director, or a member of a
licensee or license applicant, or occupies a similar position or performs a similar function;
(ii) Directly or indirectly has the right to vote 20% or more of a class
of voting securities, or has the power to sell or direct the sale of 20% or more of a class of
voting securities, of a licensee or license applicant; or
(iii) In the case of a partnership, a limited partnership, a limited
liability partnership, a limited liability company, or any other business entity:
1. Has the right to receive on liquidation or dissolution of a Ch. 567 2023 LAWS OF MARYLAND
– 24 –
licensee or license applicant 20% or more of the capital of the licensee or license applicant;
or
2. Has contributed 20% or more of the capital of a licensee or
license applicant.
[(g)] (F) (1) “Goods” means all tangible personal property that has a cash
price of $25,000 or less.
(2) “Goods” does not include money or things in action.
[(h)] (G) (1) “Installment sale agreement” means a contract for the retail sale
of consumer goods, negotiated or entered into in this State, under which:
(i) Part or all of the price is payable in one or more payments after
the making of the contract; and
(ii) The seller takes collateral security or keeps a security interest in
the goods sold.
(2) “Installment sale agreement” includes:
(i) A prospective installment sale agreement;
(ii) A purchase money security agreement; and
(iii) A contract for the bailment or leasing of consumer goods under
which the bailee or lessee contracts to pay as compensation a sum that is substantially
equal to or is more than the value of the goods.
(3) “Installment sale agreement” does not include:
(i) A bona fide C.O.D. transaction or a layaway agreement as
defined in § 14–1101(g) of the Commercial Law Article; or
(ii) A lease for industrial, commercial, or agricultural purposes.
[(i)] (H) “License” means a license issued in any form by the Commissioner
under this subtitle to [engage in] DO business as a sales finance company, including as
provided for through NMLS.
(I) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE LICENSE E
IN NMLS IN ACCORDANCE WITH T HIS SUBTITLE.
(J) “LICENSED NAME ” MEANS: WES MOORE, Governor Ch. 567
– 25 –
(1) THE LICENSEE’S LEGAL NAME; AND
(2) ANY TRADE NAME USED B Y THE LICENSEE IN ACCORDAN CE WITH
§ 2–121 OF THIS ARTICLE.
[(i–1)] (K) “Licensee” means a person licensed under this subtitle to [engage in]
DO business as a sales finance company.
[(j)] (L) “Person” includes an individual, corporation, business trust, statutory
trust, estate, trust, partnership, association, two or more persons having a joint or common
interest, or any other legal or commercial entity.
[(k)] (M) “Retail sale” means the sale of goods for use or consumption by the
buyer or for the benefit or satisfaction that the buyer may derive from the use or
consumption of the goods by another, but not for resale by the buyer.
[(l)] (N) “Sales finance company” means a person who is engaged, whether by
purchase, discount, pledge, loan, or otherwise, in the business of acquiring, investing in, or
lending money or credit on the security of any interest in:
(1) An installment sale agreement made between other parties;
(2) A retail credit account transaction, as defined in § 12–501 of the
Commercial Law Article, made between other parties; or
(3) A transaction that deals with home improvement, as defined in § 8–101
of the Business Regulation Article, made between other parties, if collateral security is
required by and given to the contractor as a condition to the transaction.
[(m)] (O) “Security interest” has the meaning stated in § 1–201(37) of the
Commercial Law Article.
[(n)] (P) “Seller” means a person who sells or leases or agrees to sell or lease
goods under an installment sale agreement.
[(o)] (Q) (1) “Surety” includes a guarantor.
(2) “Surety” does not include a seller who sells, transfers, or assigns an
agreement.
[(p)] (R) “Unique identifier” means a number or another identifier assigned by
NMLS.
11–402.1. Ch. 567 2023 LAWS OF MARYLAND
– 26 –
(a) All revenue received for the licensing AND ASSESSMENT of persons under this
subtitle and any other fee, investigation fee or assessment, or revenue received by the
Commissioner under this subtitle shall be:
(1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund
established under [§ 11–610] § 2–120 of this [title] ARTICLE; and
(2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this [title]
ARTICLE.
(C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY
IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICENSEE UNDER THIS SUBTITLE.
11–403.
(b) A [separate license is required for the principal executive office and each
branch location where a person engages in business as a sales finance company] LICENSEE
MAY DO BUSINESS AS A SALES FINANCE COMPAN Y ONLY AT A LICENSED LOCATION
OR AS OTHERWISE AUTH ORIZED BY THE COMMISSIONER THROUGH REGULATION .
11–404.
(a) (2) The application shall include:
(i) The applicant’s LEGAL name[, the] AND ANY TRADE NAME
USED BY THE APPLICAN T IN ACCORDANCE WITH § 2–121 OF THIS ARTICLE;
(II) THE applicant’s principal executive office address[, and, if];
(III) IF the applicant is not an individual, the name and residence
address of each control person;
[(ii)] (IV) The address of each [branch] ADDITIONAL location, if
any, THAT:
1. THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
LOCATION THAT DOES B USINESS AS A SALES F INANCE COMPANY , INCLUDING ANY
LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY
COMMUNICATES WITH CU STOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING;
2. HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E
OR TECHNOLOGY SYSTEM S;
WES MOORE, Governor Ch. 567
– 27 –
3. CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
4. IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; and
[(iii)] (V) Any other pertinent information that the Commissioner
requires.
[(c) For the principal executive office and each branch location license for which
an applicant applies, the applicant shall:
(1) Submit a separate application; and
(2) Pay a separate investigation fee and license fee.]
11–406.
(a) In addition to the investigation fee required by § 11–404 of this subtitle, if an
applicant [applies for a license for a place of business that is located] REQUESTS ANY
LICENSED LOCATION outside of [this] THE State AND THE INVESTIGATIO N INCLUDES
TRAVEL TO THAT LOCAT ION, the applicant shall pay to the Commissioner, on
presentation by the Commissioner of a detailed account, the reasonable travel and living
expenses incurred on account of the investigation.
[11–408.
(a) (1) Each license provided for through NMLS shall include the following
information:
(i) The name of the licensee;
(ii) The address of the location at which the business will be
conducted; and
(iii) The unique identifier of the licensee.
(2) The unique identifier of the licensee shall constitute the license number
for the license.
(b) (1) A license authorizes the licensee to do business under the license, at the
licensed location and under the name stated on the license.
(2) Only one location may be maintained under any one license.
Ch. 567 2023 LAWS OF MARYLAND
– 28 –
(c) Subject to § 11–403(b) of this subtitle, the Commissioner may issue more than
one license to an applicant who:
(1) Conducts activities for which a license is required at more than one
branch location;
(2) Complies with §§ 11–404 and 11–406 of this subtitle; and
(3) Otherwise meets the requirements of this subtitle.]
11–408.
(A) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY
THE COMMISSIONER UNDER TH IS SUBTITLE SHALL IN CLUDE THE FOLLOWING :
(1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY
THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE;
(2) THE ADDRESS OF THE LI CENSEE’S PRINCIPAL EXECUTIV E
OFFICE; AND
(3) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, WHERE
THE LICENSEE DOES BU SINESS AND THAT :
(I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
LOCATION THAT DOES B USINESS AS A SALES F INANCE COMPANY , INCLUDING ANY
LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY
COMMUNICATES WITH CU STOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING;
(II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E OR
TECHNOLOGY SYSTEMS ;
(III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
(IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE .
(B) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN
NMLS ASSOCIATED WITH THE LICENSE E’S LICENSE TO REFLECT ACCURATELY AT
ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (A) OF THIS SECTION.
(C) THE UNIQUE IDENTIFIER OF THE LICENSEE SHAL L CONSTITUTE THE WES MOORE, Governor Ch. 567
– 29 –
LICENSE NUMBER FOR T HE LICENSE.
(D) A LICENSE AUTHORIZES T HE LICENSEE TO DO BUSINE SS UNDER THE
LICENSE AT ANY LICEN SED LOCATION AND UND ER ANY LICENSED NAME , OR AS
OTHERWISE AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION .
11–410.
(b) (1) Each licensee shall conspicuously post, in 48 point or larger type, at
[the licensee’s] EACH licensed location the following information:
(i) The licensee’s unique identifier; and
(ii) A statement advising consumers of the availability of the NMLS
Consumer Access website to verify the licensing status of the licensee.
(c) A licensee is not required to post the information required in subsection (b)(1)
of this section AT A LICENSED LOCATI ON if the licensee does not REGULARLY grant
[regular] access to [the] THAT licensed location to members of the general public.
[11–411.
If a licensee changes the location for which a license is issued, the licensee
immediately shall provide to the Commissioner, in the form and in accordance with the
process that the Commissioner requires, notice of the change.]
11–411.
(A) A LICENSEE MAY NOT ADD, DELETE, OR MODIFY A LOCATION REQUIRED
TO BE LISTED IN NMLS UNDER § 11–408(A)(2) OR (3) OF THIS SUBTITLE UNL ESS:
(1) THE LICENSEE PROVIDES TO THE COMMISSIONER , THROUGH
NMLS AND IN ACCORDANCE WI TH ANY REGULATIONS T HE COMMISSIONER ADOPTS ,
NOTICE OF THE ADDITI ON, DELETION, OR MODIFICATION ;
(2) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION
IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE
IN NMLS; AND
(3) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION
OTHERWISE COMPLIES W ITH THIS SUBTITLE.
(B) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION REQUIRED TO BE
LISTED IN NMLS BY § 11–408(A)(2) OR (3) OF THIS SUBTITLE UNT IL THE LOCATION Ch. 567 2023 LAWS OF MARYLAND
– 30 –
IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE
IN NMLS.
11–414.
[(a)] Subject to the hearing provisions of § 11–415 of this subtitle, the
Commissioner may suspend or revoke the license of any licensee, if:
(1) The licensee knowingly or without exercising due care:
(i) Violates any provision of this subtitle or of any other law that
regulates agreements; or
(ii) Fails to comply with any demand or requirement that the
Commissioner makes under this subtitle;
(2) The licensee makes any material misstatement in an application for a
license;
(3) The licensee defrauds any buyer, to the buyer’s damage;
(4) The licensee willfully fails to carry out any written agreement with a
buyer;
(5) The licensee knowingly and repeatedly violates any provision of the
Maryland Consumer Debt Collection Act;
(6) An officer, director, or trustee of or partner in the licensee is responsible
for any act or omission that would be a ground for suspending or revoking a license; or
(7) Any agent or employee of the licensee is responsible for any act or
omission that would be a ground for suspending or revoking a license, if the licensee:
(i) Approves or knows of that or similar acts or omissions; and
(ii) After giving approval or learning of the act or omission, keeps
any benefit, proceeds, profit, or advantage resulting from the act or omission or otherwise
ratifies the act or omission.
[(b) If the licensee has more than one place of business, the Commissioner may
suspend or revoke only the licenses of the places of business to which the grounds for
suspension or revocation relate. However, if the Commissioner suspends or revokes the
license of one place of business and finds that the grounds for that action apply to any other
place of business, the Commissioner shall take the same action against the license for each
other place of business to which the grounds apply.]
WES MOORE, Governor Ch. 567
– 31 –
11–501.
(a) In this subtitle the following words have the meanings indicated.
(F–1) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE LICENSE E
IN NMLS IN ACCORDANCE WITH THIS SUBTITLE .
(F–2) “LICENSED NAME ” MEANS:
(1) THE LICENSEE’S LEGAL NAME; AND
(2) ANY TRADE NAME USED B Y THE LICENSEE IN AC CORDANCE WITH
§ 2–121 OF THIS ARTICLE.
11–503.1.
(b) The fees established by the Commissioner under this section TOGETHER
WITH ANY ASSESSMENTS OF LICENSEES UNDER T HIS SUBTITLE shall be reasonable
and set in a manner that will COLLECTIVELY produce funds sufficient to cover the [actual]
direct and indirect costs of [regulating] FULFILLING THE STATU TORY AND
REGULATORY D UTIES OF THE COMMISSIONER RELATED TO licensees in accordance
with [the provisions of] this subtitle.
11–503.2.
(a) All revenue received for the licensing AND ASSESSMENT of persons under this
subtitle and any other fee, examination or investigation fee or assessment, or revenue
received by the Commissioner under this subtitle shall be:
(1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund
established under [§ 11–610] § 2–120 of this [title] ARTICLE; and
(2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this [title]
ARTICLE.
(C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY
IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICEN SEE UNDER THIS SUBTI TLE.
11–505.
(a) A license issued under this subtitle authorizes the licensee to act as a
mortgage lender under the license at [the] ANY licensed [place of business] LOCATION
AND UNDER ANY LICENS ED NAME, OR AS OTHERWISE AUTH ORIZED BY THE
COMMISSIONER THROUGH REGULATION . Ch. 567 2023 LAWS OF MARYLAND
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(b) [Only one place of business may be maintained under any one license]
EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION OR A S OTHERWISE
AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION , A LICENSEE MAY DO
BUSINESS AS A MORTGA GE LENDER ONLY AT A LICENSED LOCATION .
[(c) A mortgage lender may maintain more than one license under this subtitle
provided that a separate application for each license is made pursuant to § 11–507 of this
subtitle and the Commissioner approves such application.
(d) (1) (i) Each license provided for through NMLS shall include the
following information:
1. The name of the licensee;
2. The address at which the business is to be conducted; and
3. The unique identifier of the licensee.
(ii) The unique identifier of the licensee shall constitute the license
number for the license.
(2) A person may not conduct any mortgage loan business at any location
or under any name different from the address and name that appears on the person’s
license.]
[(e)] (C) (1) A licensee may not allow any note, or loan contract, mortgage, or
evidence of indebtedness secured by a secondary mortgage or deed of trust on a dwelling or
residential real estate to be signed or executed at any place [for which the person does not
have a license] OTHER THAN A LICENSE D LOCATION, except at the office of:
(i) The attorney for the borrower or for the licensee; or
(ii) A title insurance company, a title company, or an attorney for a
title insurance company or a title company.
(2) Notwithstanding paragraph (1) of this subsection, a licensee may
conduct the loan closing at another location at the written request of the borrower or the
borrower’s designee to accommodate the borrower because of the borrower’s sickness.
(3) The Commissioner shall adopt regulations to ensure that the loan
application process is conducted fairly and in a manner consistent with the best interests
of both the borrower and mortgage lender.
[(f)] (D) A license may be issued under this subtitle to a business entity whose WES MOORE, Governor Ch. 567
– 33 –
principal EXECUTIVE office is located outside [this] THE State [provided that] IF the
business entity maintains a resident agent within the State at all times during the term of
the license, regardless of whether:
(1) The business entity maintains any office within the State; or
(2) The activities of the business entity constitute doing business or having
a tax situs in [this] THE State under the applicable provisions of the Corporations and
Associations Article.
[(g)] (E) A person exempt from licensing under this subtitle who employs a
mortgage loan originator licensed under Subtitle 6 of this title shall be registered with [the
Nationwide Mortgage Licensing System and Registry] NMLS.
(F) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY
THE COMMISSIONER UNDER TH IS SUBTITLE SHALL IN CLUDE THE FOLLOWING :
(1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY
THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE;
(2) THE ADDRESS OF THE LI CENSEE’S PRINCIPAL EXECUTIV E
OFFICE; AND
(3) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, WHERE
THE LICENSEE DOES BU SINESS AND THAT :
(I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
LOCATION THAT DOES B USINESS AS A MORTGAG E LENDER, INCLUDING ANY
LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY
COMMUNICATES WITH CU STOMERS VERBA LLY, ELECTRONICALLY , OR IN WRITING;
(II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E OR
TECHNOLOGY SYSTEMS ;
(III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
(IV) IS OTHERWISE REQUIRED TO BE LISTE D IN NMLS BY
REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE .
(G) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN
NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT
ALL TIMES THE INFORM ATION REQUIRED B Y SUBSECTION (F) OF THIS SECTION.
Ch. 567 2023 LAWS OF MARYLAND
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(H) THE UNIQUE IDENTIFIER OF THE LICENSEE SHAL L CONSTITUTE THE
LICENSE NUMBER FOR T HE LICENSE.
(I) A LICENSEE MAY NOT CON DUCT ANY BUSINESS AS A MORTGAGE
LENDER:
(1) UNDER ANY NAME OTHER THAN A LICENSED NAME ; OR
(2) EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION OR A S
OTHERWISE AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION , AT A
LOCATION OTHER THAN A LICENSED LOCATION .
11–506.1.
(b) In connection with an initial application for a license under § 11–507 of this
subtitle, and at any other time the Commissioner requests, an applicant or licensee shall
provide to [the Nationwide Mortgage Licensing System and Registry] NMLS information
concerning the applicant’s identity, including:
(1) Fingerprints for submission to the Federal Bureau of Investigation, and
any other governmental agency or entity authorized to receive this information, for a state,
national, or international criminal history background check; and
(2) Personal history and experience in a form prescribed by [the
Nationwide Mortgage Licensing System and Registry] NMLS, including the submission of
authorization for [the Nationwide Mortgage Licensing System and Registry] NMLS and
the Commissioner to obtain:
(i) An independent credit report from a consumer reporting agency
described in the federal Fair Credit Reporting Act, 15 U.S.C. § 1681a(p); and
(ii) Information related to any administrative, civil, or criminal
findings by any governmental jurisdiction.
(c) The Commissioner may request from the Federal Bureau of Investigation or
[the Nationwide Mortgage Licensing System and Registry] NMLS, as applicable, for each
applicant or licensee who is required to provide fingerprints under subsection (b) of this
section:
(1) (i) The state, national, or international criminal history records of
the applicant or licensee; and
(ii) A printed statement listing any conviction or other disposition of,
and any plea of guilty or nolo contendere to, any criminal charge;
WES MOORE, Governor Ch. 567
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(2) (i) An update of the initial criminal history records check or
criminal history background check of the applicant or licensee; and
(ii) A revised statement listing any conviction or other disposition of,
and any plea of guilty or nolo contendere to, any criminal charge occurring after the date
of the initial criminal history records check or criminal history background check; and
(3) An acknowledged receipt of the application for a criminal history
records check or criminal history background check of the applicant or licensee.
(d) An applicant or licensee who is required to provide fingerprints under
subsection (b) of this section shall pay any processing or other fees required by the Federal
Bureau of Investigation and [the Nationwide Mortgage Licensing System and Registry]
NMLS.
(e) To implement this subtitle, the Commissioner may use [the Nationwide
Mortgage Licensing System and Registry] NMLS as a channeling agent to request
information from and distribute information to the Department of Justice, any other
governmental agency with subject matter jurisdiction, and any other state licensing entity
that has loan originators registered with [the Nationwide Mortgage Licensing System and
Registry] NMLS.
11–507.
(a) (1) To apply for a license, an applicant shall:
(i) Complete, sign, and submit to the Commissioner an application
made under oath in the form, and in accordance with the process, that the Commissioner
requires; and
(ii) Provide all information that the Commissioner requests.
(2) THE APPLICATION SHALL IN CLUDE:
(I) THE APPLICANT’S LEGAL NAME AND ANY TRADE NAME USED
BY THE APPLICANT IN ACCORDANCE WITH § 2–121 OF THIS ARTICLE;
(II) THE APPLICANT’S PRINCIPAL EXECUTIV E OFFICE ADDRESS ;
(III) IF THE APPLICANT IS N OT AN INDIVIDUAL , THE NAME AND
RESIDENCE ADDRESS OF EACH CONTROL PERSON ;
(IV) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY,
THAT:
Ch. 567 2023 LAWS OF MARYLAND
– 36 –
1. THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
LOCATION THAT DOES B USINESS AS A MORTGAG E LENDER, INCLUDING ANY
LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY
COMMUNICATES WITH CU STOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING;
2. HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E
OR TECHNOLOGY SYSTEM S;
3. CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
4. IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; AND
(V) ANY OTHER PERTINENT I NFORMATION THAT THE
COMMISSIONER REQUIRES .
(3) The applicant shall comply with all conditions and provisions of the
application for licensure and be issued a license before acting as a mortgage lender [at a
particular location].
(b) [With each application, the] THE applicant shall pay to the Commissioner the
following fees:
(1) A nonrefundable investigation fee set by the Commissioner; and
(2) A nonrefundable license fee set by the Commissioner.
(c) In addition to the license fee required under subsection (b)(2) of this section,
an applicant for an initial license shall pay to [the Nationwide Mortgage Licensing System
and Registry] NMLS any fees that [the Nationwide Mortgage Licensing System and
Registry] NMLS imposes in connection with the application.
(d) [For each license for which an applicant applies, the applicant shall:
(1) Submit a separate application;
(2) Pay a separate nonrefundable license fee;
(3) Pay any application processing fee or other fees that the Nationwide
Mortgage Licensing System and Registry imposes in connection with the application;
(4) If applicable, pay the surcharge; and
WES MOORE, Governor Ch. 567
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(5) File a separate surety bond or other financial guaranty under § 11–508
of this subtitle.
(e)] In addition to any sanctions that may be imposed under this subtitle by the
Commissioner, a nonrefundable surcharge of $500 shall be paid [with]:
(1) WITH an application if the applicant has begun acting as a mortgage
lender without a license [at the location for which an application is filed]; AND
(2) BY A LICENSEE IF THE LICENSEE HAS ACTED A S A MORTGAGE
LENDER AT A LOCATION THAT IS NOT A LICENS ED LOCATION.
[(f)] (E) A person who knowingly makes a false statement under oath on an
application filed with the Commissioner under this section is guilty of perjury and on
conviction is subject to the penalties of § 9–101 of the Criminal Law Article.
11–508.
(a) With the application for a [new] license, an applicant shall file a surety bond
with the Commissioner.
[(c) (1) If an applicant has not conducted a mortgage lending business any time
during the 36 months prior to the filing of an original application for a license, the applicant
shall provide a sworn statement setting forth that fact.
(2) If an applicant has conducted a mortgage lending business any time
during the 36 months prior to the filing of an original application, the applicant shall
provide a sworn statement setting forth the aggregate principal amount of mortgage loans
secured or to be secured by property located in Maryland and applied for and accepted or
serviced or mortgage loans secured or to be secured by property located in Maryland and
applied for, procured, and accepted or serviced by the mortgage lender during the 12
months immediately preceding the month in which the application is filed.
(3) If an applicant has conducted a mortgage lending business any time
during the 36 months prior to the filing of an original application, but during that time has
not acted as a mortgage lender in Maryland, the applicant shall provide with the original
application a sworn statement setting forth the aggregate principal amount of loans
secured or to be secured by a dwelling or residential real estate located in states other than
Maryland and applied for, procured, and accepted or serviced by the mortgage lender
during the 12 months preceding the month in which the application is filed.
(4) Except as provided in subsection (d) of this section, the applicant shall
file with the original application:
(i) Where the aggregate principal amount of loans set forth in the
sworn statement was $3,000,000 or less, a surety bond in the amount of $50,000; Ch. 567 2023 LAWS OF MARYLAND
– 38 –
(ii) Where the aggregate principal amount of loans set forth in the
sworn statement was more than $3,000,000 but not more than $10,000,000, a surety bond
in the amount of $100,000; and
(iii) Where the aggregate principal amount of loans set forth in the
sworn statement was more than $10,000,000, a surety bond in the amount of $150,000.]
(C) (1) THE AMOUNT OF THE SUR ETY BOND UNDER S UBSECTION (B) OF
THIS SECTION SHALL B E IN AN AMOUNT OF NO T LESS THAN $50,000 AND NOT MORE
THAN $750,000, AS DETERMINED BY THE COMMISSIONER FOR EACH LICENSEE.
(2) IN SETTING THE AMOUNT OF THE SURETY BOND , THE
COMMISSIONER MAY CONS IDER:
(I) THE NATURE AND VOLUME OF THE BU SINESS OR PROPOSED
BUSINESS OF THE LICE NSEE OR APPLICANT ;
(II) THE FINANCIAL CONDITI ON OF THE LICENSEE O R
APPLICANT, INCLUDING:
1. THE AMOUNT, NATURE, QUALITY, AND LIQUIDITY OF
THE ASSETS OF THE LI CENSEE OR APPLICANT ;
2. THE AMOUNT AND NATURE OF THE LIABILITIES ,
INCLUDING CONTINGENT LIABILITIES, OF THE LICENSEE OR A PPLICANT;
3. THE HISTORY OF AND PR OSPECTS FOR THE LICE NSEE
OR APPLICANT TO EARN AND RETAIN INCOME ; AND
4. THE POTENTIAL HARM TO CONSUMERS IF THE
APPLICANT OR LICENSEE BEC OMES FINANCIALLY IMP AIRED;
(III) THE QUALITY OF THE OP ERATIONS OF THE LICE NSEE OR
APPLICANT;
(IV) THE QUALITY OF THE MA NAGEMENT OF THE LICE NSEE OR
APPLICANT;
(V) THE NATURE AND QUALIT Y OF THE PERSON THAT HAS
CONTROL OF THE LICENSEE OR APPLICAN T; AND
(VI) ANY OTHER FACTOR THAT THE COMMISSIONER CONSIDER S WES MOORE, Governor Ch. 567
– 39 –
RELEVANT.
[(d) Notwithstanding any other provisions of this section, and subject to approval
by the Commissioner, if an applicant files five or more original or renewal applications at
the same time, the applicant may provide a blanket surety bond for all licensed offices in
the amount of $750,000.]
[(e)] (D) Subject to approval by the Commissioner, an applicant for license who
files an application for a new license may satisfy the bonding requirement under this
section by establishing a trust account with or obtaining an irrevocable letter of credit from
a financial institution insured by the Federal Deposit Insurance Corporation in an amount
equal to the bond required under this section.
[(f)] (E) (1) The Commissioner may adopt regulations reasonably necessary
to assure that the proper surety bond amount established by this section is maintained by
each licensee throughout each licensing term.
(2) The regulations may provide for periodic reporting, recalculation, and
enforcement of required bond amounts.
[(g)] (F) If a mortgage servicer is subject to a receivership proceeding, the
Commissioner or a receiver appointed under § 7–404.1(b)(2) or § 7–506(b) of the Real
Property Article, without regard to any priorities, preferences, or adverse claims, may:
(1) Reduce the bond or the deposit in lieu of a bond to cash; and
(2) Use the cash to defray the costs associated with the receivership.
11–511.
(a) Subject to any regulations the Commissioner adopts in connection with the
transition to [the Nationwide Mortgage Licensing System and Registry] NMLS, an initial
license term shall:
(1) Begin on the day the license is issued; and
(2) Expire on December 31 of the year:
(i) The license is issued, if the license is issued before November 1;
or
(ii) Succeeding the year that the license is issued, if the license is
issued on or after November 1.
(c) Subject to any regulations the Commissioner adopts in connection with the
transition to [the Nationwide Mortgage Licensing System and Registry] NMLS, a renewal Ch. 567 2023 LAWS OF MARYLAND
– 40 –
term shall:
(1) Be for a period of 1 year;
(2) Begin on January 1 of each year after the initial term; and
(3) Expire on December 31 of the year the renewal term begins.
(d) In addition to the license renewal fee required under subsection (b)(2) of this
section, an applicant for a license renewal shall pay to [the Nationwide Mortgage Licensing
System and Registry] NMLS any fees that [the Nationwide Mortgage Licensing System
and Registry] NMLS imposes in connection with the renewal application.
11–512.
[(a) (1) A licensee may not change the place of business for which a license is
issued unless the licensee:
(i) Notifies the Commissioner through NMLS of the proposed
change; and
(ii) Receives the approval of the Commissioner through NMLS.
(2) Within 60 days after receiving a request for approval of a proposed
change in the place of business for a licensee, the Commissioner shall approve or deny the
request.
(3) If the Commissioner does not approve or deny a request for approval of
a proposed change in the place of business for a licensee as provided under paragraph (2)
of this subsection, the request shall be deemed approved.]
(A) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION REQUIRED
TO BE LISTED IN NMLS UNDER § 11–505(F)(2) OR (3) OF THIS SUBTITLE UNL ESS:
(1) THE LICENSEE PROVIDES TO THE COMMISSIONER , THROUGH
NMLS AND IN ACCORDANCE WI TH ANY REGULATIONS T HE COMMISSIONER ADOPTS ,
NOTICE OF THE ADDITI ON, DELETION, OR MODIFICATION ;
(2) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION
IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE
IN NMLS; AND
(3) THE ADDITION, DELETION, OR MODIFICATION OF TH E LOCATION
OTHERWISE COMPLIES W ITH THIS SUBTITLE. WES MOORE, Governor Ch. 567
– 41 –
(B) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION REQUIRED TO BE
LISTED IN NMLS BY § 11–505(F)(2) OR (3) OF THIS SUBTITLE UNT IL THE LOCATION
IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE
IN NMLS.
[(b)] (C) (1) A licensee may not undergo a change in control unless the
licensee:
(i) Notifies the Commissioner through NMLS of the proposed
change;
(ii) Makes a request through NMLS that the Commissioner approve
the proposed change;
(iii) Provides any information the Commissioner may require under
paragraph (3) of this subsection; and
(iv) Receives the approval of the Commissioner through NMLS.
(2) For purposes of this subsection:
(i) If the licensee is a corporation, “control” means direct or indirect
ownership of, or the right to control, 25% or more of the voting shares of the licensee, or the
ability to elect a majority of the directors or otherwise effect a change in policy; and
(ii) If the licensee is an entity other than a corporation, “control”
means the possession, directly or indirectly, of the power to direct or cause the direction of
the management and policies of the licensee, whether through the ownership of voting
securities, by contract, or otherwise.
(3) Within 60 days after receiving a request for approval of a proposed
change in control, the Commissioner may require the licensee to provide any information
deemed necessary to determine whether a new application is required because of the
proposed change in control.
(4) The Commissioner shall approve or deny a request for approval of a
proposed change in control:
(i) Within 60 days after the date the Commissioner receives the
request; or
(ii) If the Commissioner requests information from the licensee
under paragraph (3) of this subsection, within 60 days after the date the information is
received by the Commissioner.
Ch. 567 2023 LAWS OF MARYLAND
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(5) If the Commissioner does not approve or deny a request for approval of
a proposed change in control as provided under paragraph (4) of this subsection, the request
shall be deemed approved.
[(c)] (D) In addition to any sanctions which may be imposed under this subtitle
by the Commissioner, a licensee who fails to provide in a timely manner the notice required
under subsection (a)(1) or [(b)(1)] (C)(1) of this section shall:
(1) For each such failure pay to the Commissioner a surcharge in the
amount of $500; and
(2) For a licensee who fails to provide in a timely manner the notice
required under subsection [(b)(1)] (C)(1) of this section, file with the Commissioner an
application for a new license, together with all applicable application and investigation fees.
11–512.1.
(a) Each licensee shall conspicuously post, in 48 point or larger type, at [the
licensee’s] EACH licensed location the following information:
(1) The licensee’s unique identifier; and
(2) A statement advising consumers of the availability of the NMLS
Consumer Access website to verify the licensing status of the licensee.
(c) A licensee is not required to post the information required in subsection (a) of
this section AT A LICENSED LOCATI ON if the licensee does not regularly grant access to
[the] THAT licensed location to members of the general public.
11–513.
(a) Each licensee shall keep and make available to the Commissioner at the
licensee’s [place of business] LICENSED LOCATION any books and records that the
Commissioner, by rule or regulation, requires to enable the Commissioner to enforce:
(1) This subtitle;
(2) Any rule or regulation adopted under this subtitle; and
(3) Any other provision regulating the application, making, brokering, or
servicing of mortgage loans under Titles 12 through 14 of the Commercial Law Article.
(b) Subject to approval by the Commissioner, nothing in this section is to be
construed to prohibit a licensee from maintaining duplicate records or electronic
equivalents at the licensee’s [place of business] LICENSED LOCATION . WES MOORE, Governor Ch. 567
– 43 –
(c) Notwithstanding subsection (a) of this section, on approval of the
Commissioner, a licensee need not keep at the licensee’s [place of business] LICENSED
LOCATION any books and records otherwise required by the Commissioner under
subsection (a) of this section if the licensee:
(1) Makes the books and records available to the Commissioner at the
licensee’s [place of business] LICENSED LOCATION within 5 business days [of] AFTER the
Commissioner’s official request; and
(2) Retains the records for at least 61 months in a storage facility disclosed
to the Commissioner.
11–601.
(a) In this subtitle the following words have the meanings indicated.
(f) “Fund” means the [Nondepository] NON–DEPOSITORY Special Fund
established under [§ 11–610] § 2–120 of this [subtitle] ARTICLE.
11–602.
(c) Each licensee shall obtain and maintain a valid unique identifier issued by
[the Nationwide Mortgage Licensing System and Registry] NMLS:
(1) On obtaining an initial or renewal license on or after July 1, 2009; or
(2) If the Commissioner has not joined [the Nationwide Mortgage
Licensing System and Registry] NMLS as of July 1, 2009, on or after the date that the
Commissioner joins, as instructed by the Commissioner by notice to the licensee.
[11–610.
(a) There is a Nondepository Special Fund that consists of:
(1) Revenue received for the licensing of individuals under this subtitle;
(2) Revenue received for the licensing of persons under Subtitle 2 of this
title;
(3) Revenue received for the licensing of persons under Subtitle 3 of this
title;
(4) Revenue received for the licensing of persons under Subtitle 4 of this
title;
Ch. 567 2023 LAWS OF MARYLAND
– 44 –
(5) Revenue received for the licensing of persons under Subtitle 5 of this
title;
(6) Revenue received for the licensing of persons under Title 12, Subtitle 1
of this article;
(7) Revenue received for the licensing of persons under Title 12, Subtitle 4
of this article;
(8) Revenue received for the licensing of persons under Title 12, Subtitle 9
of this article;
(9) Revenue received for the registration of persons under Title 12, Subtitle
10 of this article;
(10) Revenue received for the licensing of persons under Title 7 of the
Business Regulation Article;
(11) Revenue received for the licensing of persons under Title 14, Subtitle
19 of the Commercial Law Article;
(12) Income from the investments that the State Treasurer makes for the
Fund; and
(13) (i) Any other fee, examination or investigation fee or assessment, or
revenue received by the Commissioner under this subtitle, Subtitles 2, 3, 4, and 5 of this
title, Title 12, Subtitles 1, 4, 9, and 10 of this article, Title 12, Subtitle 14 of the Commercial
Law Article, and Title 14, Subtitles 12 and 19 of the Commercial Law Article; and
(ii) Any other fee or revenue received by the State Collection Agency
Licensing Board under Title 7 of the Business Regulation Article.
(b) Notwithstanding subsection (a) of this section:
(1) The Commissioner shall pay all fines and penalties collected by the
Commissioner under Title 2, Subtitle 1 of this article, this subtitle, Subtitles 2, 3, 4, and 5
of this title, Title 12, Subtitles 1, 4, 9, and 10 of this article, Title 12, Subtitle 14 of the
Commercial Law Article, and Title 14, Subtitles 12 and 19 of the Commercial Law Article
into the General Fund of the State; and
(2) The State Collection Agency Licensing Board shall pay all fines and
penalties collected by the Board under Title 7 of the Business Regulation Article into the
General Fund of the State.
(c) The purpose of the Fund is to cover the direct and indirect costs of fulfilling
the statutory and regulatory duties of the Commissioner and the State Collection Agency WES MOORE, Governor Ch. 567
– 45 –
Licensing Board related to:
(1) Title 2, Subtitle 1 of this article;
(2) This subtitle;
(3) Subtitle 2 of this title;
(4) Subtitle 3 of this title;
(5) Subtitle 4 of this title;
(6) Subtitle 5 of this title;
(7) Title 12, Subtitle 1 of this article;
(8) Title 12, Subtitle 4 of this article;
(9) Title 12, Subtitle 9 of this article;
(10) Title 12, Subtitle 10 of this article;
(11) Title 7 of the Business Regulation Article;
(12) Title 12 of the Commercial Law Article;
(13) Title 14, Subtitles 12, 19, and 42 of the Commercial Law Article;
(14) Title 7, Subtitles 1, 3, 4, and 5 of the Real Property Article;
(15) Title 26, Subtitle 6 of the Education Article; and
(16) Any other expense authorized in the State budget.
(d) (1) The annual State budget shall include the costs and expenses of the
Commissioner and the State Collection Agency Licensing Board relating to subsection (c)
of this section.
(2) Any expenditures from the Fund to cover costs and expenses of the
Commissioner and the State Collection Agency Licensing Board relating to subsection (c)
of this section may be made only:
(i) With an appropriation from the Fund approved by the General
Assembly in the annual State budget; or
(ii) By the budget amendment procedure provided for in § 7–209 of Ch. 567 2023 LAWS OF MARYLAND
– 46 –
the State Finance and Procurement Article.
(3) If, in any fiscal year, the amount of the revenue collected by the
Commissioner and the State Collection Agency Licensing Board and deposited into the
Fund exceeds the actual appropriation for the Commissioner and the State Collection
Agency Licensing Board under paragraph (2)(i) of this subsection, the excess amount shall
be carried forward within the Fund.
(e) (1) The State Treasurer is the custodian of the Fund.
(2) The State Treasurer shall deposit payments received from the
Commissioner into the Fund.
(f) (1) (i) The Fund is a special, nonlapsing fund that is not subject to §
7–302 of the State Finance and Procurement Article.
(ii) The Fund may not be deemed a part of the General Fund of the
State.
(2) Unless otherwise provided by law, no part of the Fund may revert or be
credited to:
(i) The General Fund of the State; or
(ii) Any other special fund of the State.]
11–612.1.
(a) The Commissioner shall set by regulation the fees provided for in this subtitle.
(b) The fees established by the Commissioner under this section shall be
reasonable and set in a manner that will produce funds sufficient to cover the actual direct
and indirect costs of regulating licensees in accordance with the provisions of this subtitle.
(c) The Commissioner shall publish the fee schedule set by the Commissioner.
(D) ALL REVENUE RECEIVED FOR THE LICENSING AN D ASSESSMENT OF
PERSONS UNDER THIS S UBTITLE AND ANY OTHE R FEE OR REVENUE THE
COMMISSIONER RECEIVES UNDER THIS SU BTITLE SHALL BE:
(1) CREDITED TO THE FUND; AND
(2) USED IN ACCORDANCE WI TH § 2–120(D) OF THIS ARTICLE.
(E) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY WES MOORE, Governor Ch. 567
– 47 –
IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICEN SEE UNDER THIS SUBTI TLE.
12–101.
(a) In this subtitle the following words have the meanings indicated.
(b) [“Branch location” means any location other than the principal executive office
of a licensee or license applicant at which the licensee conducts, or the license applicant, on
licensure, will conduct, activities required to be licensed under this subtitle.
(c)] (1) “Control person” means a person who has the power, directly or
indirectly, to direct the management or policies of a licensee or license applicant, whether
through ownership of securities, by contract, or otherwise.
(2) “Control person” includes a person who:
(i) Is a general partner, an officer, a director, or a member, or
occupies a similar position or performs a similar function;
(ii) Directly or indirectly has the right to vote 5% or more of a class
of voting securities, or has the power to sell or direct the sale of 5% or more of a class of
voting securities, of a licensee or license applicant; or
(iii) In the case of a partnership, a limited partnership, a limited
liability partnership, a limited liability company, or any other business entity:
1. Has the right to receive on liquidation or dissolution of a
licensee or license applicant 5% or more of the capital of the licensee or license applicant;
or
2. Has contributed 5% or more of the capital of a licensee or
license applicant.
[(d)] (C) “Exempt entity” means an entity that is exempt from all requirements
of licensing as provided under § 12–103(b) and (c) of this subtitle.
[(e)] (D) “License” means a license issued in any form by the Commissioner
under this subtitle to provide check cashing services, including as provided for through
NMLS.
(E) (1) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE
LICENSEE IN NMLS IN ACCORDANCE WITH T HIS SUBTITLE.
(2) “LICENSED LOCATION ” INCLUDES A MOBILE UN IT.
(F) “LICENSED NAME ” MEANS: Ch. 567 2023 LAWS OF MARYLAND
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(1) THE LICENSEE’S LEGAL NAME; AND
(2) ANY TRADE NAME USED B Y THE LICENSEE IN AC CORDANCE WITH
§ 2–121 OF THIS ARTICLE.
[(f)] (G) “Licensee” means a person licensed under this subtitle to provide check
cashing services.
[(g)] (H) “Mobile unit” means a motor vehicle or other movable means from
which check cashing services are provided.
[(h)] (I) (1) “Payment instrument” means a check or a draft ordering a
person to pay money.
(2) “Payment instrument” includes a money order.
[(i)] (J) “Provide check cashing services” means to accept or cash, for
compensation, a payment instrument regardless of the date of the payment instrument.
[(j)] (K) “Unique identifier” means a number or another identifier assigned by
NMLS.
12–104.1.
(a) All revenue received for the licensing AND ASSESSMENT of persons under this
subtitle and any other fee or revenue received by the Commissioner under this subtitle
shall be:
(1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund
established under [§ 11–610] § 2–120 of this article; and
(2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this article.
(C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY
IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICEN SEE UNDER THIS SUBTI TLE.
12–105.
(b) A [separate license is required for the principal executive office of the license
applicant or licensee at which, each branch location at which, and each mobile unit from
which, a person provides check cashing services] LICENSEE MAY PROVIDE CHECK
CASHING SERVICES ONL Y AT A LICENSED LOCA TION OR AS OTHERWISE AUTHORIZED
BY THE COMMISSIONER THROUGH REGULATION . WES MOORE, Governor Ch. 567
– 49 –
12–106.
To qualify for a license, an applicant shall satisfy the Commissioner that:
(1) The applicant’s business will promote the convenience and advantage
of the [community in which] COMMUNITIES WHERE the [applicant’s place of business, or
mobile unit, will be located] APPLICANT WILL OPERA TE A LICENSED LOCATI ON
OFFERING CHECK CASHI NG SERVICES; and
(2) The applicant or, if the applicant is not an individual, each of the
owners, officers, directors, or principals of the entity:
(i) Has sufficient experience, character, financial responsibility, and
general fitness to:
1. Command the confidence of the public; and
2. Warrant the belief that the business will be operated
lawfully, honestly, fairly, and efficiently; and
(ii) Has not committed any act that would be a ground for suspension
or revocation of a license under this subtitle.
12–108.
(a) (2) The application shall include:
(i) The applicant’s LEGAL name[, the] AND ANY TRADE NAME
USED BY THE APPLICAN T IN ACCORDANCE WITH § 2–121 OF THIS ARTICLE;
(II) THE applicant’s principal executive office address[, and, if];
(III) IF the applicant is not an individual, the name and residence
address of each control person;
[(ii)] (IV) The address of each [branch] ADDITIONAL location, if
any, THAT:
1. THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
LOCATION THAT PROVID ES CHECK CASHING SER VICES, INCLUDING ANY LOCATI ON
THAT INVESTIGATES CU STOMER COMPLAINTS OR DIRECTLY COMMUNICATE S WITH
CUSTOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING;
2. HOUSES ANY CORE OPERATION AL INFRASTRUCTURE Ch. 567 2023 LAWS OF MARYLAND
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OR TECHNOLOGY SYSTEM S;
3. CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
4. IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ;
[(iii)] (V) If the [license is for] LICENSEE OPERATES a mobile unit,
the vehicle identification number of [the] EACH mobile unit and the geographic area [in
which the] WHERE EACH mobile unit will be operating; and
[(iv)] (VI) Any other information that the Commissioner requires for
an investigation and findings under § 12–109 of this subtitle.
[(c) For the principal executive office, each branch location, and each mobile unit
license for which an applicant applies, the applicant shall:
(1) Submit a separate application; and
(2) Pay a separate investigation fee and license fee.]
[12–110.
(a) (1) Each license provided for through NMLS shall include the following
information:
(i) The name of the licensee;
(ii) 1. The address of the location at which check cashing services
will be provided; or
2. If the license is for a mobile unit, the vehicle identification
number of the mobile unit and the geographic area in which check cashing services will be
provided; and
(iii) The unique identifier of the licensee.
(2) The unique identifier of the licensee shall constitute the license number
for the license.
(b) (1) A license authorizes the licensee to provide check cashing services
under the name stated on the license and at the location at which, or if the license is for a
mobile unit the geographic area in which, check cashing services will be provided.
WES MOORE, Governor Ch. 567
– 51 –
(2) Only one location, or one mobile unit, may be maintained under any one
license.
(c) Subject to § 12–105(b) of this subtitle, the Commissioner may issue more than
one license to an applicant who:
(1) Conducts activities for which a license is required at more than one
location;
(2) Complies with § 12–108 of this subtitle; and
(3) Otherwise meets the requirements of this subtitle.]
12–110.
(A) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY
THE COMMISSIONER UNDER TH IS SUBTITLE SHALL IN CLUDE THE FOLLOWING :
(1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY
THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE;
(2) THE ADDRESS OF THE LI CENSEE’S PRINCIPAL EXECUTIV E
OFFICE;
(3) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, WHERE
THE LICENSEE DOES BU SINESS AND THAT :
(I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
LOCATION THAT OFFERS CHECK CASHING SERVIC ES, INCLUDING ANY LOCATI ON
THAT INVESTIGATES CU STOMER COMPLAINTS OR DIRECTLY COMMUNICATE S WITH
CUSTOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING;
(II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTURE OR
TECHNOLOGY SYSTEMS ;
(III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
(IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE; AND
(4) THE INFORMATION REQUI RED BY § 12–108(A)(2)(V) OF THIS
SUBTITLE FOR EACH MO BILE UNIT, IF ANY, OF THE LICENSEE .
Ch. 567 2023 LAWS OF MARYLAND
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(B) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN
NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT
ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (A) OF THIS SECTION.
(C) THE UNIQUE IDENTIFIER ASSIGNED BY NMLS TO A LICENSEE SHALL
CONSTITUTE THE LICEN SEE’S LICENSE NUMBER .
(D) A LICENSE AUTHORIZES T HE LICENSEE TO DO BU SINESS UNDER THE
LICENSE AT ANY LICENSE D LOCATION, UNDER ANY LICENSED N AME AND, FOR EACH
MOBILE UNIT, IN THE GEOGRAPHIC AR EA LISTED FOR THE MO BILE UNIT IN NMLS,
OR AS OTHERWISE AUTH ORIZED BY THE COMMISSIONER THROUGH REGULATION .
12–112.
(b) (1) Each licensee shall conspicuously post, in 48 point or larger type, at
[the licensee’s] EACH licensed location [or mobile unit] the following information:
(i) The licensee’s unique identifier; and
(ii) A statement advising consumers of the availability of the NMLS
Consumer Access website to verify the licensing status of the licensee.
(c) A licensee is not required to post the information required in subsection (b)(1)
of this section AT A LICENSED LOCATI ON if THE LICENSED LOCATIO N IS NOT A MOBILE
UNIT AND the licensee does not regularly grant access to [the] THAT licensed location to
members of the general public.
[12–113.
A licensee may not change the location for which a license is issued unless the
licensee:
(1) Provides to the Commissioner, in the form and in accordance with the
process that the Commissioner requires, notice of the proposed change; and
(2) Receives the consent of the Commissioner through NMLS prior to the
change.]
12–113.
(A) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION REQUIRED
TO BE LISTED IN NMLS UNDER § 12–110(A)(2), (3), OR (4) OF THIS SUBTITLE
UNLESS:
WES MOORE, Governor Ch. 567
– 53 –
(1) THE LICENSEE PROVIDES TO THE COMMISSIONER , THROUGH
NMLS AND IN ACCORDANCE WI TH ANY REGULATIONS T HE COMMISSIONER ADOPTS ,
NOTICE OF THE ADDITI ON, DELETION, OR MODIFICATION ;
(2) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION
IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE
IN NMLS; AND
(3) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION
OTHERWISE COMPLIES W ITH THIS SUBTITLE.
(B) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION OR IN A
GEOGRAPHIC AREA REQU IRED TO BE LISTED IN NMLS BY § 12–110(A)(2), (3), OR
(4) OF THIS SUBTITLE UNT IL THE LOCATION OR G EOGRAPHIC AREA IS RE CORDED
WITH THE INFORMATION ASSOCIATED WITH THE LICENSEE’S LICENSE IN NMLS.
12–114.
(c) A licensee may retain the records required under this subtitle at any location,
[provided that] IF the licensee:
(1) Notifies the Commissioner in writing of the location of the records; and
(2) Makes the records available at [a place of business for which a license
has been issued or at the licensee’s principal place of business] THE LICENSED LOCATIO N,
as agreed by the Commissioner and the licensee, within 7 days [of] AFTER a written
request for examination by the Commissioner.
12–118.
A licensee shall conspicuously post, in 48 point or larger type, at each [place of
business at which, or mobile unit from which,] LICENSED LOCATION WH ERE the licensee
provides check cashing services:
(1) A notice of the fees for check cashing services; and
(2) The phone number of the Commissioner for customers to file
complaints.
12–401.
(a) In this subtitle the following words have the meanings indicated.
(c) [(1)] “Authorized delegate” means a person who is authorized by a licensee Ch. 567 2023 LAWS OF MARYLAND
– 54 –
to engage in the business of money transmission under [the name of the licensee] A
LICENSED NAME at any location other than [the place of business specified in the license]
A LICENSED LOCATION .
[(2) “Authorized delegate” does not include a branch location of a licensee.]
[(e) (1) “Branch location” means any location other than the principal executive
office of a licensee or license applicant at which money transmission services are, or will be
on licensure, conducted in the State or with a person in the State.
(2) “Branch location” does not include an authorized delegate.]
(K) (1) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE
LICENSEE IN NMLS IN ACCORDANCE WITH T HIS SUBTITLE.
(2) “LICENSED LOCATION ” INCLUDES A SELF –SERVICE FINANCIAL
KIOSK.
(3) “LICENSED LOCATION ” DOES NOT INCLUDE AN AUTHORIZED
DELEGATE.
(L) “LICENSED NAME ” MEANS:
(1) THE LICENSEE’S LEGAL NAME; AND
(2) ANY TRADE NAME USED B Y THE LICENSEE IN AC CORDANCE WITH
§ 2–121 OF THIS ARTICLE.
[(k–1)] (M) “Licensee” means a person licensed under this subtitle to engage in the
business of money transmission.
12–404.
(a) All revenue received for the licensing AND ASSESSMENT of money
transmitters under this subtitle and any other fee, examination assessment, or revenue
received by the Commissioner under this subtitle shall be:
(1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund
established under [§ 11–610] § 2–120 of this article; and
(2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this article.
(C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY
IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICEN SEE UNDER THIS SUBTI TLE. WES MOORE, Governor Ch. 567
– 55 –
12–406.
(a) To qualify for a license, an applicant shall satisfy the Commissioner that the
applicant:
(3) Has a tangible net worth computed according to generally accepted
accounting principles of at least $150,000, plus an additional net worth of $10,000 for each
[additional branch] LICENSED location or authorized delegate, up to a maximum of
$500,000 as provided in subsection (b) of this section; and
12–407.
(b) An applicant shall provide:
[(1) The trade name of the applicant, as filed with the State Department of
Assessments and Taxation under § 1–406 of the Corporations and Associations Article, and
any fictitious or other name used by the applicant in the conduct of the applicant’s
business;]
(1) THE APPLICANT ’S LEGAL NAME AND ANY TRADE NAME USED BY
THE APPLICANT IN ACC ORDANCE WITH § 2–121 OF THIS ARTICLE;
(2) (I) The address of the principal executive office of the applicant[,
each branch location, and each self–service financial kiosk];
(II) THE ADDRESS OF EACH ADDITIONAL LOCATION, IF ANY,
THAT:
1. THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
LOCATION THAT ENGAGE S IN THE BUSINESS OF MONEY TRANSMISSION , INCLUDING
ANY LOCATION THAT IN VESTIGATES CUSTOMER COMPLAINTS OR DIRECT LY
COMMUNICATES WITH CU STOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING;
2. HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E
OR TECHNOLOGY SYSTEM S;
3. CONDUCTS AN Y CORE MANAGEMENT , INFORMATION
SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
4. IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; AND
(III) IF THE LICENSEE OPERA TES A SELF–SERVICE FINANCIAL Ch. 567 2023 LAWS OF MARYLAND
– 56 –
KIOSK, THE FOLLOWING INFORM ATION FOR EACH SELF –SERVICE FINANCIAL KI OSK:
1. UNIQUE IDENTIFYING IN FORMATION FOR THE
SELF–SERVICE FINANCIAL KI OSK, SUCH AS THE MANUFACT URER NAME , MODEL
NUMBER, SERIAL NUMBER , OR ASSET TAG;
2. IF THE LICENSEE INTEN DS TO OPERATE THE
SELF–SERVICE FINANCIAL KI OSK FROM ANY FIXED L OCATION FOR MORE THA N 30
DAYS IN A CALENDAR Y EAR, EACH PHYSICAL ADDRES S WHERE THE SELF –SERVICE
FINANCIAL KIOSK WILL BE OPERATED ; AND
3. IF THE LICENSEE INTEN DS TO OPE RATE THE
SELF–SERVICE FINANCIAL KI OSK AT ANY LOCATION FOR 30 DAYS OR LESS IN A
CALENDAR YEAR , THE GEOGRAPHIC AREA WHERE THE LICENSEE I NTENDS TO
OPERATE THE SELF –SERVICE FINANCIAL KI OSK;
[(h) (1) In addition to any license required under §§ 12–405 and 12–410 of this
subtitle, each money transmitter shall obtain and maintain a license for its principal
executive office.
(2) For each branch location license for which an applicant applies, the
applicant shall:
(i) Submit a separate application;
(ii) Pay a separate nonrefundable license fee of $1,000; and
(iii) Pay the application processing fee that NMLS imposes in
connection with processing the application for the branch location.
(3) For each self–service financial kiosk license for which an applicant
applies, the applicant shall:
(i) Submit a separate application;
(ii) Pay a separate nonrefundable license fee of $500; and
(iii) Pay the application processing fee that NMLS imposes in
connection with processing the application for the self–service financial kiosk.
(4) If an applicant has or is applying for more than one license, the
applicant may comply with subsection (g) of this section by filing evidence of only one surety
device.
(5) If an applicant has or is applying for more than one license, the WES MOORE, Governor Ch. 567
– 57 –
applicant is not required to pay a separate investigation fee.]
12–410.
[(a) (1) Each license provided for through NMLS shall include the following
information:
(i) The name of the licensee;
(ii) The trade name of the licensee;
(iii) The address at which the business is to be conducted; and
(iv) The unique identifier of the licensee.
(2) The unique identifier of the licensee shall constitute the license number
for the license.
(b) (1) A license authorizes the licensee to do business under the license, at the
licensed place of business.
(2) A license does not authorize the licensee to accept deposits or engage
otherwise in a banking business except as authorized in this subtitle.
(3) Only one place of business may be maintained under any one license.
(c) The Commissioner may issue more than one license to an applicant who:
(1) Complies with § 12–407 of this subtitle; and
(2) Otherwise meets the requirements of this subtitle.]
(A) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY
THE COMMISSIONER UNDER TH IS SUBTITLE SHALL IN CLUDE THE FOLLOWING :
(1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY
THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE;
(2) THE ADDRESS OF THE LICEN SEE’S PRINCIPAL EXECUTIV E
OFFICE;
(3) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, WHERE
THE LICENSEE DOES BU SINESS AND THAT :
(I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A Ch. 567 2023 LAWS OF MARYLAND
– 58 –
LOCATION THAT OFFERS MONEY TRANSMISSION S ERVICES, INCLUDING ANY
LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY
COMMUNICATES WITH CU STOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING;
(II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E OR
TECHNOLOGY SYSTEMS ;
(III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
(IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; AND
(4) THE INFORMATION REQUI RED BY § 12–407(B)(2)(III) OF THIS
SUBTITLE FOR EACH SE LF–SERVICE FINANCIAL KI OSK, IF ANY, OF THE LICENSEE .
(B) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN
NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT
ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (A) OF THIS SECTION.
(C) THE UNIQUE IDENTIFIER ASSIGNED BY NMLS TO A LICENSEE SHALL
CONSTITUTE THE LICEN SEE’S LICENSE NUMBER .
(D) A LICENSE AUTHORIZES T HE LICENSEE TO DO BU SINESS UNDER THE
LICENSE AT ANY LICEN SED LOCATION, UNDER ANY LICENSED N AME AND, FOR EACH
SELF–SERVICE FINANCIAL KI OSK, THE ADDRESS OR GEOGR APHIC AREA LISTED FO R
THE SELF–SERVICE FINANCIAL KI OSK IN NMLS, OR AS OTHERWISE AUTH ORIZED BY
THE COMMISSIONER THROUGH REGULATION .
[(d)] (E) A license may not be transferred or assigned.
[(e)] (F) (1) Each licensee shall conspicuously post, in 48 point or larger type,
at [the licensee’s] EACH licensed location the following information:
(i) The licensee’s unique identifier; and
(ii) A statement advising consumers of the availability of the NMLS
Consumer Access website to verify the licensing status of the licensee.
(2) Each authorized delegate, at each location open to the public, shall
conspicuously post, in at least [48–point] 48 POINT type, the following information:
(i) A notice stating, “the Commissioner of Financial Regulation for WES MOORE, Governor Ch. 567
– 59 –
the State of Maryland will accept all questions or complaints regarding this authorized
delegate of (name of licensee and unique identifier) at (address of Commissioner), phone
(toll–free phone number of the Commissioner)”; and
(ii) A statement advising consumers of the availability of the NMLS
Consumer Access website to verify the licensing status of the licensee.
(3) Each licensee shall conspicuously display the following information on
the licensee’s website, any mobile application through which the services are offered, the
outside of the self–service financial kiosk, any software application accessible to the public
and used for money transmission services, and profile page within each social media
platform the licensee uses:
(i) The licensee’s unique identifier;
(ii) A link to the NMLS Consumer Access website; and
(iii) A notice stating, “The Commissioner of Financial Regulation for
the State of Maryland will accept all questions or complaints from Maryland residents
regarding (name of licensee and unique identifier) at (address of Commissioner), phone
(toll–free phone number of the Commissioner)”.
[(f)] (G) A licensee is not required to post the information required in subsection
[(e)(1)] (F)(1) of this section AT A LICENSED LOCATI ON if the LICENSED LOCATION IS
NOT A SELF–SERVICE FINANCIAL KI OSK AND THE licensee does not regularly grant
access to [the] THAT licensed location to members of the general public.
12–412.
(a) (1) In this section[, “trust] THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED .
(2) “AVERAGE DAILY MONEY T RANSMISSION LIABILIT Y” MEANS THE
AMOUNT OF THE APPLIC ANT’S OR LICENSEE’S OUTSTANDING MONEY TRANSMISSION
OBLIGATIONS IN THE STATE AT THE END OF E ACH DAY IN A GIVEN QUART ER, ADDED
TOGETHER AND DIVIDED BY THE TOTAL NUMBER OF DAYS IN THAT QUAR TER.
(3) “TRUST company” has the meaning stated in § 1–101 of the Estates
and Trusts Article.
(d) (1) The amount of the surety bond under subsection (b) of this section or
the deposit in lieu of a surety bond under subsection (c) of this section shall be [in an
amount of not less than] THE GREATER OF :
(I) $150,000 [and not more than $1,000,000, as determined by the Ch. 567 2023 LAWS OF MARYLAND
– 60 –
Commissioner]; OR
(II) 100% OF THE APPLICANT ’S AVERAGE DAILY MONE Y
TRANSMISSION LIABILI TY IN THE STATE CALCULATED FOR THE MOST RECENTLY
COMPLETED QUARTER , UP TO A MAXIMUM OF $2,000,000.
[(2) In setting the amount of the surety bond or the deposit in lieu of a surety
bond, the Commissioner shall consider:
(i) The financial condition of the licensee or applicant;
(ii) For a licensee, the average monthly outstanding money
transmission liability for the previous 12 months;
(iii) For an applicant, the projected monthly money transmissions
volume in the State, the business experience, and any other factor deemed appropriate; and
(iv) The potential loss of money transmissions by persons for whom
or to whom money is transmitted if the applicant or licensee becomes financially impaired.]
(2) THE QUARTERS FOR CALC ULATING THE AVERAGE DAILY MONEY
TRANSMISSION LIABILI TY UNDER PARAGRAPH (1) OF THIS SUBSECTION F OR ANY
LICENSEE REQUIRED TO DO SO SHALL BE THE Q UARTERS ENDING MARCH 31, JUNE
30, SEPTEMBER 30, AND DECEMBER 31.
12–415.
[(a) (1) A licensee may not change the place of business for which a license is
issued unless the licensee:
(i) Notifies the Commissioner through NMLS of the proposed
change; and
(ii) Receives the approval of the Commissioner through NMLS.
(2) Within 60 days after receiving a request for approval of a proposed
change in the place of business for a licensee, the Commissioner shall approve or deny the
request.
(3) If the Commissioner does not deny a request for approval of a proposed
change in the place of business for a licensee as provided under paragraph (2) of this
subsection, the request shall be deemed approved.]
(A) (1) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION WES MOORE, Governor Ch. 567
– 61 –
REQUIRED TO B E LISTED IN NMLS UNDER § 12–410(A)(2), (3), OR (4) OF THIS
SUBTITLE UNLESS :
(I) THE LICENSEE PROVIDES TO THE COMMISSIONER ,
THROUGH NMLS AND IN ACCORDANCE WI TH ANY REGULATIONS A DOPTED BY THE
COMMISSIONER , NOTICE OF THE ADDITI ON, DELETION, OR MODIFICATI ON;
(II) THE ADDITION , DELETION, OR MODIFICATION OF T HE
LOCATION IS RECORDED WITH THE INFORMATION ASSOCIATED WITH THE
LICENSEE’S LICENSE IN NMLS; AND
(III) THE ADDITION , DELETION, OR MODIFICATION OF T HE
LOCATION OTHERWISE C OMPLIES WITH THIS SU BTITLE.
(2) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION OR IN A
GEOGRAPHIC AREA REQU IRED TO BE LISTED IN NMLS BY § 12–410(A)(2), (3), OR
(4) OF THIS SUBTITLE UNT IL THE LOCATION OR G EOGRAPHIC AREA IS RE CORDED
WITH THE INFORMATION ASSOCIATED WITH THE LICENSEE’S LICENSE IN NMLS.
12–424.
(a) The Commissioner may conduct an [on–site] examination of a licensee or AN
authorized delegate with not less than 7 business [days] DAYS’ prior notice.
(b) With good cause, the Commissioner may conduct an [on–site] examination of
a licensee or AN authorized delegate with no prior notice.
(c) The licensee shall pay all reasonably incurred costs of an examination
conducted under this section, including a per–day fee set by the Commissioner for each of
the Commissioner’s employees engaged in the examination.
(d) [The on–site] ANY examination may be conducted in conjunction with an
examination performed by a representative of a responsible supervisory agency of another
state.
(e) (1) The Commissioner, in lieu of an [on–site] examination, may accept the
examination report of a responsible supervisory agency of another state, or a report
prepared by an independent accounting firm.
(2) A report accepted under paragraph (1) of this subsection is considered
for all purposes as an official report of the Commissioner.
(f) The Commissioner may:
Ch. 567 2023 LAWS OF MARYLAND
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(1) Examine all books, accounts, and records the Commissioner determines
are necessary to conduct a complete examination; and
(2) Examine under oath any officer, director, or employee of the licensee,
or any other individual who may provide information on behalf of the licensee.
12–901.
(a) In this subtitle the following words have the meanings indicated.
(b) “Annual gross revenue” means income or revenue from all sources, before any
expenses or taxes, computed according to generally accepted accounting principles for the
preceding fiscal year.
(c) [“Branch location” means any location other than the principal executive office
of a licensee or license applicant at which the licensee conducts, or the license applicant, on
licensure, will conduct, activities required to be licensed under this subtitle.
(d)] “Consultation fee” means a fee paid by a consumer to a debt management
services provider in connection with the processing of any application that the consumer
makes for debt management services.
[(e)] (D) “Consumer” means an individual who:
(1) Resides in the State; and
(2) Is seeking debt management services or has entered into a debt
management services agreement.
[(f)] (E) “Consumer education program” means a program or plan that:
(1) Seeks to improve the financial literacy of consumers regarding personal
finance, budgeting, and credit and debt management; and
(2) Provides counseling tailored to the needs and circumstances of the
consumer with regard to options and strategies for addressing the consumer’s debt
problems, including:
(i) Creating and maintaining a budget;
(ii) Establishing debt management payment plans with creditors;
(iii) Negotiating directly with creditors on payment or interest rate
relief; and
(iv) Filing for bankruptcy. WES MOORE, Governor Ch. 567
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[(g)] (F) (1) “Control person” means a person who has the power, directly or
indirectly, to direct the management or policies of a licensee or license applicant, whether
through ownership of securities, by contract, or otherwise.
(2) “Control person” includes a person who:
(i) Is a general partner, an officer, or a director of a licensee or
license applicant, or a member that occupies a similar position or performs a similar
function;
(ii) Directly or indirectly has the right to vote 10% or more of a class
of voting securities, or has the power to sell or direct the sale of 10% or more of a class of
voting securities, of a licensee or license applicant; or
(iii) In the case of a partnership, a limited partnership, a limited
liability partnership, a limited liability company, or any other business entity:
1. Has the right to receive on liquidation or dissolution of a
licensee or license applicant 10% or more of the capital of the licensee or license applicant;
or
2. Has contributed 10% or more of the capital of a licensee or
license applicant.
[(h)] (G) “Debt management counselor” means a permanent, temporary, or
contractual employee of a debt management services provider or its agent who provides
counseling to consumers on behalf of the debt management services provider.
[(i)] (H) “Debt management services” means receiving funds periodically from a
consumer under an agreement with the consumer for the purpose of distributing the funds
among the consumer’s creditors in full or partial payment of the consumer’s debts.
[(j)] (I) “Debt management services agreement” means a written contract, plan,
or agreement between a debt management services provider and a consumer for the
performance of debt management services.
[(k)] (J) “Debt management services provider” means a person that provides or
offers to provide debt management services to a consumer.
[(k–1)] (K) “License” means a license issued in any form by the Commissioner
under this subtitle to provide debt management services, including as provided for through
NMLS.
(L) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE LICENSE E
IN NMLS IN ACCORDANCE WITH T HIS SUBTITLE. Ch. 567 2023 LAWS OF MARYLAND
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(M) “LICENSED NAME ” MEANS:
(1) THE LICENSEE’S LEGAL NAME; AND
(2) ANY TRADE NAME USED B Y THE LICENSEE IN AC CORDANCE WITH
§ 2–121 OF THIS ARTICLE.
[(l)] (N) “Licensee” means a person licensed under this subtitle to provide debt
management services.
[(m)] (O) “Maintenance fee” means a fee paid by a consumer to a debt
management services provider for the maintenance or servicing of the consumer’s accounts
with the consumer’s creditors in accordance with a debt management services agreement.
[(n)] (P) “Relative” means any of the following who are related to an individual
by blood, marriage, or adoption:
(1) A spouse;
(2) A child;
(3) A sibling;
(4) A parent;
(5) A grandparent;
(6) A grandchild;
(7) A stepparent;
(8) A stepchild;
(9) A stepsibling;
(10) An aunt; or
(11) An uncle.
[(o)] (Q) “Resident agent” means an individual residing in the State or a
Maryland corporation whose name, address, and designation as a resident agent are filed
or recorded with the State Department of Assessments and Taxation in accordance with
[the provisions of] the Corporations and Associations Article.
WES MOORE, Governor Ch. 567
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[(p)] (R) “Trust account” means an account that is:
(1) Established in a financial institution that is federally insured;
(2) Separate from the debt management services provider’s operating
account;
(3) Designated as a “trust account” or by another appropriate designation
indicating that the funds in the account are not the funds of the licensee or its officers,
employees, or agents;
(4) Unavailable to creditors of the debt management services provider; and
(5) Used to hold funds paid by consumers to a debt management services
provider for disbursement to creditors of the consumers.
[(q)] (S) “Unique identifier” means a number or another identifier assigned by
NMLS.
12–904.
[(a) An applicant shall submit separate applications for the applicant’s principal
executive office and each branch location.
(b)] With the license application [for the principal executive office of an applicant],
the applicant shall pay to the Commissioner:
(1) A nonrefundable investigation fee of $1,000 for an initial license; and
(2) A license fee for an initial license or a license renewal for an additional
1–year term, as follows:
(i) $500, if the applicant’s annual gross revenue is not more than
$3,000,000;
(ii) $1,000, if the applicant’s annual gross revenue is more than
$3,000,000 but not more than $6,000,000;
(iii) $2,000, if the applicant’s annual gross revenue is more than
$6,000,000 but not more than $15,000,000;
(iv) $3,000, if the applicant’s annual gross revenue is more than
$15,000,000 but not more than $30,000,000; or
(v) $4,000, if the applicant’s annual gross revenue is more than
$30,000,000. Ch. 567 2023 LAWS OF MARYLAND
– 66 –
[(c) With the license application for each branch location of an applicant, the
applicant shall pay to the Commissioner a $100 license fee for an initial license or a license
renewal for an additional 1–year term.]
12–905.
(a) All revenue received for the licensing AND ASSESSMENT of persons under this
subtitle and, except as provided in subsection (b) of this section, any other fee, examination
assessment, or revenue received by the Commissioner under this subtitle shall be:
(1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund
established under [§ 11–610] § 2–120 of this article; and
(2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this article.
(C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY
IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICEN SEE UNDER THIS SUBTI TLE.
12–906.
(b) A [separate license is required for the principal executive office of the license
applicant or licensee and each branch location] LICENSEE MAY DO BUSI NESS AS A DEBT
MANAGEMENT SERVICES PROVID ER ONLY AT A LICENSE D LOCATION OR AS
OTHERWISE AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION .
12–908.
(b) The application shall include:
(1) The applicant’s LEGAL name AND ANY TRADE NAME USED BY THE
APPLICANT IN ACCORDA NCE WITH § 2–121 OF THIS ARTICLE , THE APPLICANT ’S
principal executive office address, and website address, if any, and, if the applicant is not
an individual, the name and residence address of each control person, if any;
(2) The address of each [branch] ADDITIONAL location, if any, [at which
the applicant will provide debt management services;] THAT:
(I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
LOCATION THAT DOES B USINESS AS A DEBT MA NAGEMENT SERVICES PR OVIDER,
INCLUDING ANY LOCATI ON THAT INVESTIGATES CUSTOMER COMPLAINTS O R
DIRECTLY COMMUNICATE S WITH CUSTOMERS VER BALLY, ELECTRONICALLY , OR IN
WRITING;
WES MOORE, Governor Ch. 567
– 67 –
(II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E OR
TECHNOLOGY SYSTEMS ;
(III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
(IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ;
12–911.
[(a) (1) Each license provided for through NMLS shall include the following
information:
(i) The name of the licensee;
(ii) The address of the location at which the business is to be
conducted; and
(iii) The unique identifier of the licensee.
(2) The unique identifier of the licensee shall constitute the license number
for the license.
(b) A license authorizes the licensee to provide debt management services.]
(A) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY
THE COMMISSIONER UNDER TH IS SUBTITLE SHALL IN CLUDE THE FOLLOWING :
(1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY
THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE;
(2) THE ADDRESS OF THE LI CENSEE’S PRINCIPAL EXECUTIV E
OFFICE; AND
(3) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, WHERE
THE LICENSEE DOES BU SINESS AND THAT :
(I) THE GENERAL PUBLIC MAY R EASONABLY VIEW AS A
LOCATION THAT DOES B USINESS AS A DEBT MA NAGEMENT SERVICES PR OVIDER,
INCLUDING ANY LOCATI ON THAT INVESTIGATES CUSTOMER COMPLAINTS OR
DIRECTLY COMMUNICATE S WITH CUSTOMERS VER BALLY, ELECTRONICALLY , OR IN
WRITING;
Ch. 567 2023 LAWS OF MARYLAND
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(II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E OR
TECHNOLOGY SYSTEMS ;
(III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
(IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE .
(B) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN
NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT
ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (A) OF THIS SECTION.
(C) THE UNIQUE IDENTIFIER ASSIGNED BY NMLS TO A LICENSEE SHALL
CONSTITUTE THE LICEN SEE’S LICENSE NUMBER .
(D) A LICENSE AUTHORIZES T HE LICENSEE TO DO BU SINESS UNDER THE
LICENSE AT ANY LICEN SED LOCATION AND UND ER ANY LICENSED NAME , OR AS
OTHERWISE AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION .
[(c)] (E) A license may not be transferred, assigned, or pledged.
[(d)] (F) Each licensee shall conspicuously post, in 48 point or larger type, at
[the licensee’s] EACH licensed location the following information:
(1) The licensee’s unique identifier; and
(2) A statement advising consumers of the availability of the NMLS
Consumer Access website to verify the licensing status of the licensee.
[(e)] (G) Each licensee shall conspicuously display the following information on
the licensee’s website, any software application accessible to the public and used to provide
debt management services, and profile page within each social media platform the licensee
uses:
(1) The licensee’s unique identifier;
(2) A link to the NMLS Consumer Access website; and
(3) A notice stating, “The Commissioner of Financial Regulation for the
State of Maryland will accept any questions and complaints from Maryland residents
regarding (name and unique identifier of the debt management services provider) at
(address of Commissioner), phone (toll–free number of the Commissioner).
WES MOORE, Governor Ch. 567
– 69 –
[(f) Only one location may be maintained under any one license.]
[(g)] (H) A licensee is not required to post the information required in subsection
[(d)] (F) of this section AT A LICENSED LOCATI ON if the licensee does not regularly grant
access to [the] THAT licensed location to members of the general public.
12–914.
(b) (2) The bond shall be:
(i) In an amount [not less than $10,000 and not more than
$1,000,000, as set] DETERMINED by the Commissioner UNDER SUBSECTION (F) OF THIS
SECTION;
[(8) In setting the amount of the surety bond, the Commissioner shall
consider:
(i) The financial condition and business experience of the applicant
or licensee and the agent of the applicant or licensee;
(ii) For an applicant, the projected monthly and annual volume of
debt management services to be provided in the State;
(iii) For a licensee, the average monthly and annual volume of debt
management services provided in the State during the previous 12–month period;
(iv) The potential loss to consumers who remit funds to the applicant
or licensee if the applicant or licensee becomes financially impaired; and
(v) Any other factor the Commissioner considers appropriate.]
(F) (1) THE AMOUNT OF THE SUR ETY BOND UNDER SUBSE CTION (B) OF
THIS SECTION SHALL B E IN AN AMOUNT OF NO T LESS THAN $10,000 AND NOT MORE
THAN $1,000,000, AS DETERMINED BY THE COMMISSIONER FOR EACH LICENSEE.
(2) IN SETTING THE AMOUNT OF THE SURETY BOND , THE
COMMISSIONER MAY CONS IDER:
(I) THE NATURE AND VOLUME OF THE BUSINESS OR P ROPOSED
BUSINESS OF THE LICE NSEE OR APPLICANT ;
(II) THE FINANCIAL CONDITION OF THE LIC ENSEE OR
APPLICANT, INCLUDING:
Ch. 567 2023 LAWS OF MARYLAND
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1. THE AMOUNT, NATURE, QUALITY, AND LIQUIDITY OF
THE ASSETS OF THE LI CENSEE OR APPLICANT ;
2. THE AMOUNT AND NATURE OF THE LIABILITIES ,
INCLUDING CONTINGENT LIABILITIES, OF THE LICENSEE OR A PPLICANT;
3. THE HISTORY OF AND PR OSPECTS FOR THE LICE NSEE
OR APPLICANT TO EARN AND RETAIN INCOME ; AND
4. THE POTENTIAL HARM TO CONSUMERS IF THE
APPLICANT OR LICENSE E BECOMES FINANCIALL Y IMPAIRED;
(III) THE QUALITY OF THE OP ERATIONS OF THE LICE NSEE OR
APPLICANT;
(IV) THE QUALITY OF THE MA NAGEMENT OF THE LICE NSEE OR
APPLICANT;
(V) THE NATURE AND QUALIT Y OF THE PERSON THAT HAS
CONTROL OF THE LICEN SEE OR APPLICANT ; AND
(VI) ANY OTHER FACTOR THAT THE COMMISSIONER CONSIDER S
RELEVANT.
12–915.
(a) (1) [A] EXCEPT FOR A CHANGE O F A LICENSED LOCATIO N MADE IN
COMPLIANCE WITH SUBS ECTION (D) OF THIS SECTION, A licensee shall update through
NMLS any change in the information required to be included in the licensee’s application
under § 12–908(b)(1) [and (2)] of this subtitle at least 30 days before the change is effective.
(2) The licensee shall ensure that, after the change described in this
subsection, the licensee will continue to satisfy the surety bond requirement under §
12–914 of this subtitle.
(b) Unless approved by the Commissioner through NMLS, a licensee may not
change a control person of the licensee, or an agent who is acting on behalf of the licensee
to manage a trust account, listed on the licensee’s application under § 12–908(b)(3) and (6)
of this subtitle.
(c) (1) To request approval of a proposed change described in subsection (b) of
this section, the licensee shall notify the Commissioner through NMLS of the proposed
change and submit any information that the Commissioner requires.
WES MOORE, Governor Ch. 567
– 71 –
(2) For a proposed change in owner or agent acting on behalf of the licensee
to manage a trust account, the Commissioner may determine that the filing of a new
application for the issuance of a license is warranted.
(3) Unless the Commissioner notifies the licensee that a different time
period is necessary, the Commissioner shall approve or deny a request for a change
described in subsection (b) of this section within 60 days after the date the Commissioner
receives all information required under paragraph (1) of this subsection.
(D) (1) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION
REQUIRED TO BE LISTE D IN NMLS UNDER § 12–911(A)(2) OR (3) OF THIS SUBTITLE
UNLESS:
(I) THE LICENSEE PROVIDES TO THE COMMISSIONER ,
THROUGH NMLS AND IN ACCORDANCE WITH AN Y REGULATIONS THE
COMMISSIONER ADOPTS , NOTICE OF THE ADDITI ON, DELETION, OR MODIFICATION ;
(II) THE ADDITION , DELETION, OR MODIFICATION OF T HE
LOCATION IS RECORDED WITH THE INFORMATION ASSOCIATED WITH THE
LICENSEE’S LICENSE IN NMLS; AND
(III) THE ADDITION , DELETION, OR MODIFICATION OF T HE
LOCATION OTHERWISE C OMPLIES WITH THIS SU BTITLE.
(2) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION REQUIRED
TO BE LISTED IN NMLS BY § 12–911(A)(2) OR (3) OF THIS SUBTITLE UNT IL THE
LOCATION IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE
LICENSEE’S LICENSE IN NMLS.
12–923.
(b) For the purposes of this section, the Commissioner:
(1) Shall be given access to [the] ANY LICENSED LOCATIO N OR OTHER
place of business AND ALL books, papers, records, safes, and vaults of the person under
investigation; and
12–924.
(a) The Commissioner may conduct an [on–site] examination of a licensee with
or without prior notice.
(c) [An on–site] ANY examination may be conducted in conjunction with an
examination performed by a representative of a responsible supervisory agency of another Ch. 567 2023 LAWS OF MARYLAND
– 72 –
state.
(d) (1) The Commissioner, in lieu of an [on–site] examination, may accept the
examination report of a responsible supervisory agency of another state.
(2) A report accepted under paragraph (1) of this subsection is considered
for all purposes as an official report of the Commissioner.
12–1007.
(a) All revenue received for the registration of persons under this subtitle and,
except as provided in subsection (b) of this section, any other fee, examination assessment,
or revenue received by the Commissioner under this subtitle shall be:
(1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund
established under [§ 11–610] § 2–120 of this article; and
(2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this article.
Article – State Finance and Procurement
6–226.
(a) (2) (i) Notwithstanding any other provision of law, and unless
inconsistent with a federal law, grant agreement, or other federal requirement or with the
terms of a gift or settlement agreement, net interest on all State money allocated by the
State Treasurer under this section to special funds or accounts, and otherwise entitled to
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General
Fund of the State.
(ii) The provisions of subparagraph (i) of this paragraph do not apply
to the following funds:
170. the Cannabis Public Health Fund; [and]
171. the Community Reinvestment and Repair Fund; AND
172. THE NON–DEPOSITORY SPECIAL FUND.
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 12 –401(f) through
(k) and (l) through (v) of Article – Financial Institutions of the Annotated Code of Maryland
be renumbered to be Section(s) 12–401(e) through (j) and (n) through (x), respectively.
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2023. WES MOORE, Governor Ch. 567
– 73 –
Approved by the Governor, May 8, 2023.