Md. Code Regs. 05.13.04.07

Current through Register Vol. 51, No. 24, December 2, 2024

Section 05.13.04.07 - Control of Money in Reserve Account by Department

A. All money deposited or otherwise credited to the reserve account is under the exclusive control of the Department. The Department may not withdraw money from the reserve account, except as specifically provided in this chapter.

B. If money in the reserve account is not deposited by the Department in a federally insured account with the lender, the money shall be invested or reinvested by the Department in one of the following:

(1) Direct obligations of the United States, the principal and interest of which are unconditionally guaranteed by the United States; or

(2) A deposit account at a depository institution whose deposits are insured by the Federal Deposit Insurance Corporation or National Credit Union Administration.

C. If the reserve account for a given lender is not maintained with that lender, the Department shall provide to the lender quarterly transaction reports indicating the following:

(1) The balance in the reserve account;

(2) Payments and transfers into the reserve account;

(3) Withdrawals from the reserve account; and

(4) Interest or income earned on the money credited to the reserve account.

D. The records of the Department are available to the lender at the offices of the Department, during normal business hours of the Department, with respect to:

(1) Payments and transfers into the reserve account;

(2) Withdrawals from the reserve account; and

(3) Interest or income earned on the money credited to the reserve account.

E. All interest earned in a reserve account shall be credited to that account. Fifty percent of the interest earned may be withdrawn by the Department from that account and used for any purpose.

Md. Code Regs. 05.13.04.07