COMAR 02.02.03.06. Escrow Requirements

A. The Commissioner, in his discretion, shall have the right to require an escrow fund to be established and may, by regulation or order, require as a condition of registration by qualification that the proceeds from the sale of the registered securities be impounded until the issuer receives a special amount. The Commissioner may, by regulation or order, determine the conditions of any escrow or impounding required hereunder, but he may not reject a depository solely because of location in another state.

B. Accordingly, in any instance where he determines impounding of the proceeds of the sale of securities to be in the public interest and necessary for the protection of investors, the Commissioner will require, as a condition of registration, that the registrant deposit a specific percentage of the proceeds from the sale of the registrant's securities in an acceptable depository, pursuant to a written agreement between the registrant issuer and the depository, to be retained in it until a specific sum has been accumulated and the terms and conditions of the agreement have been performed.