Maryland Code, FINANCIAL INSTITUTIONS 12-1002
Terms Used In Maryland Code, FINANCIAL INSTITUTIONS 12-1002
- Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
(b) A person who periodically receives funds from consumers to be used in connection with providing debt settlement services is not engaged in providing debt management services, and is not subject to Subtitle 9 of this title, if the person:
(1) Complies with the requirements of this subtitle;
(2) (i) Negotiates to settle a consumer’s debts by reducing the principal amount of the debts owed; and
(ii) Makes no more than six settlement payments for each debt; and
(3) Establishes a dedicated account that:
(i) Is separate from any trust account established by the person under § 12-917 of this title; and
(ii) Is not established solely for the purpose of holding consumer funds to be disbursed to the debt settlement services provider for fees.