Ch. 405                                  LAWS OF MARYLAND                                                 

Article - Financial Institutions                             

SUBTITLE 3A. WITHDRAWAL OF ITEMS

5-3A-01.                                                                                                           

(A)  IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.                                                                                                             

(B)   "BUSINESS DAY" MEANS ANY DAY EXCLUDING SATURDAYS,
SUNDAYS, AND LEGAL HOLIDAYS.

(C)  "COLLECTION BASIS", MEANS FUNDS ARE MADE AVAILABLE TO A
CUSTOMER FOR AN ITEM WHEN THEY ARE COLLECTED BY THE DEPOSITORY
BANK.

(D)  "DEPOSITORY BANK" MEANS A BANKING INSTITUTION WHICH
MAINTAINS THE ACCOUNT INTO WHICH AN ITEM IS FIRST DEPOSITED.

(E)  "FOREIGN ITEM" MEANS ANY ITEM THAT IS PAYABLE AS DRAWN
OR ACCEPTED BY A FOREIGN FINANCIAL INSTITUTION THAT HAS ITS
PRINCIPAL PLACE OF BUSINESS IN A FOREIGN NATION AND DOES NOT HAVE
A SUBSIDIARY IN THE STATE.                                                                               

(F)  (1) "ITEM" MEANS ANY INSTRUMENT, WHETHER NEGOTIABLE OR
NONNEGOTIABLE, FOR THE PAYMENT OF MONEY.                                                   

(2) "ITEM" DOES NOT INCLUDE MONEY.                                       

                                                                                     ...                                                                                                                                                                                                                                                                                                                                                                                                                                         

(G) "LOCAL ITEM" MEANS ANY ITEM THAT IS PAYABLE AS DRAWN OR
ACCEPTED BY A FINANCIAL INSTITUTION THAT HAS A PRINCIPAL OFFICE
OR BRANCH OFFICE LOCATED IN THE STATE.                                                       

(H) "OUT-OF-STATE ITEM" MEANS ANY ITEM THAT IS PAYABLE AS
DRAWN OR ACCEPTED BY A FINANCIAL INSTITUTION THAT HAS ITS
PRINCIPAL PLACE OF BUSINESS IN THE UNITED STATES BUT NOT IN THIS
STATE.

(I) "RETURN OF AN ITEM" HAS THE MEANING SET FORTH IN §
.4-301 OF THE COMMERCIAL LAW ARTICLE. --------

5-3A-02.

THE GENERAL ASSEMBLY DECLARES THAT IT IS THE PUBLIC POLICY

OF THE STATE TO ENSURE THAT ALL CUSTOMERS OR MEMBERS OF FINANCIAL

INSTITUTIONS ARE ABLE TO DRAW AGAINST ITEMS DEPOSITED FOR

COLLECTION IN ANY BANKING INSTITUTION LOCATED IN THE STATE WITHIN

A REASONABLE PERIOD OF TIME.                                                                       

5-3A-03.                                                                     

(A) THE BANK COMMISSIONER SHALL ADOPT REGULATIONS
ESTABLISHING A REASONABLE PERIOD OF TIME OF NOT MORE THAN:

- 2064 -