1148 LAWS OF MARYLAND. [CH. 454

reasonable diligence after such dishonor; and further in the
event of failure to obtain the return of any such item notice
of dishonor may be given upon a copy or written particulars
thereof, and delay in giving notice of dishonor caused by an
attempt with reasonable diligence to obtain return of such
item shall be excused.

95. INSOLVENCY AND PREFERENCES. (1) When the
drawee or payor, or any other agent collecting bank shall
fail or be closed for business by State Bank Commission
or by action of the board of directors or by other proper legal
action, after an item shall be mailed or otherwise entrusted
to it for collection or payment but before the actual collec-
tion or payment thereof, it shall be the duty of the receiver
or other official in charge of its assets to return such item, if
same is in his possession, to the forwarding or presenting bank
with reasonable diligence.

(2) Except in cases where an item or items is treated as
dishonored by non-payment as provided in Section 11, when
a, drawee or payor bank has presented to it for payment an
item or items drawn upon or payable by or at such bank, and
at the time has on deposit to the credit of the maker or drawer
an amount equal to such item or items, and such drawee or
payor shall fail or close for business as above, after having
charged such item or items to the account of the maker or
drawer thereof or otherwise discharged his liability thereon
but without such item or items having been paid or settled
for by the drawee or payor either in money or by an uncon-
ditional credit given on its books or on the books of any other
bank, which has been requested or accepted so as to consti-
tute such drawee or payor or other bank debtor therefor, the
assets of such drawee or payor shall be impressed with a trust
in favor of the owner or owners of such item or items for the
amount thereof, or for the balance payable upon a number of
items which have been exchanged, and such owner or owners
shall be entitled to a preferred claim upon such assets, irre-
spective of whether the fund representing such item or items
can be traced and identified as part of such assets or has been
intermingled with or converted into other assets of such failed
bank.

(3) Where an agent collecting bank other than the drawee
or payor shall fail or be closed for business as above, after
having received in any form the proceeds of an item or items