# COMAR 02.02.03.06: COMAR 02.02.03.06. Escrow Requirements

> Maryland · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_02_02_03_06

## Section

- **Citation:** COMAR 02.02.03.06
- **Heading:** COMAR 02.02.03.06. Escrow Requirements
- **Jurisdiction:** Maryland
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Code of Maryland Regulations / Title 02 OFFICE OF THE ATTORNEY GENERAL / Subtitle 02 DIVISION OF SECURITIES / Chapter 03 Registration Regulations / COMAR 02.02.03.06

## Text

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.

## Nearby sections

- [COMAR 02.02.03.01 COMAR 02.02.03.01. Prospectus](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_02_02_03_01.md)
- [COMAR 02.02.03.02 COMAR 02.02.03.02. Acceptability of Uniform Forms in Registration by Coordination](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_02_02_03_02.md)
- [COMAR 02.02.03.04 COMAR 02.02.03.04. Quarterly Reports on Registered Securities](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_02_02_03_04.md)
- [COMAR 02.02.03.05 COMAR 02.02.03.05. Financial Statements Filed As Part of Registration Statements for Registration of Securities by Qualification Notification](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_02_02_03_05.md)
- [COMAR 02.02.03.06 COMAR 02.02.03.06. Escrow Requirements](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_02_02_03_06.md)
- [COMAR 02.02.03.07 COMAR 02.02.03.07. Registration by Coordination of Shelf Registrations Pursuant to SEC Rule 415](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_02_02_03_07.md)
- [COMAR 02.02.03.08 COMAR 02.02.03.08. Filing of Sales and Advertising Literature](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_02_02_03_08.md)
- [COMAR 02.02.03.09 COMAR 02.02.03.09. Procedure for Renewal of Registration Statement](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_02_02_03_09.md)
- [COMAR 02.02.03.10 COMAR 02.02.03.10. Registration of Securities of Investment Companies](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_02_02_03_10.md)
- [COMAR 02.02.03.11 COMAR 02.02.03.11. Initial and Renewal Registration as Issuer Agent](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_02_02_03_11.md)
- [COMAR 02.02.03.12 COMAR 02.02.03.12. Small Corporate Offering Registration](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_02_02_03_12.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_02_02_03_06. Check the current official text before relying on it. Not legal advice.