(d) The amount of a surety bond purchased instead of a security deposit may not exceed 1 month’s rent per dwelling unit (except as otherwise permitted under § 5514(a)(3) of this title). If a tenant purchases a surety bond and provides a security deposit in accordance with this section, the aggregate amount of both the surety bond and security deposit may not exceed 1 month’s rent per dwelling unit (except as otherwise permitted under § 5514(a)(3) of this title).
(e) Before a tenant purchases a surety bond instead of paying all or part of a security deposit, a surety shall disclose in writing to the tenant that:
(1) Except under the circumstances outlined in subsection (c) of this section, payment for a surety bond is nonrefundable;
(2) The surety bond is not insurance for the tenant;
(3) The surety bond is being purchased to protect the landlord against loss due to nonpayment of rent, breach of lease, or damages caused by the tenant;
(4) The tenant may be required to reimburse the surety for amounts the surety paid to the landlord for any claim made by the landlord against the surety bond;
(5) Even after a tenant purchases a surety bond, the tenant remains responsible for the following:
a. To reimburse the landlord for actual damages caused to the premises by the tenant which exceed normal wear and tear, or which cannot be corrected by painting and ordinary cleaning;
b. To pay the landlord for all rental arrearage due under the rental agreement, including late charges and rental due for premature termination or abandonment of the rental agreement by the tenant; and