868                                   LAWS OF MARYLAND

(c) if in a case not covered by sub-paragraphs (a) or (b) the per-
son receiving the settlement fails to seasonably present, forward for
collection, pay or return a remittance instrument or authorization to
it to charge before its midnight deadline,—at such midnight deadline.

4—212. Right of Charge-Back or Refund.

(1)  If a collecting bank has made provisional settlement with its
customer for an item and itself fails by reason of dishonor, suspen-
sion of payments by a bank or otherwise to receive a settlement for
the item which is or becomes final, the bank may revoke the settle-
ment given by it, charge back the amount of any credit given for
the item to its customer's account or obtain refund from its customer
whether or not it is able to return the item if by its midnight dead-
line or within a longer reasonable time after it learns the facts it
returns the item or sends notification of the facts. These rights to
revoke, charge-back and obtain refund terminate if and when a
settlement for the item received by the bank is or becomes final (Sub-
section (3) of Section 4—211 and Sub-sections (2) and (3) of Sec-
tion 4—213).

(2)   Within the time and manner prescribed by this section and
Section 4—301, an intermediary or pay or bank, as the case may be,
may return an unpaid item directly to the depositary bank and may
send for collection a draft on the depositary bank and obtain reim-
bursement. In such case, if the depositary bank has received pro-
visional settlement for the item, it must reimburse the bank drawing
the draft and any provisional credits for the item between banks
shall become and remain final.

(3)  A depositary bank which is also the payor may charge-back
the amount of an item to its customer's account or obtain refund in
accordance with the section governing return of an item received by
a payor bank for credit on its books (Section 4—301).

(4) The right to charge-back is not affected by

(a)  prior use of the credit given for the item; or

(b)  failure by any bank to exercise ordinary care with respect to
the item but any bank so failing remains liable.

(5)  A failure to charge-back or claim refund does not affect other
rights of the bank against the customer or any other party.

(6)  If credit is given in dollars as the equivalent of the value of
an item payable in a foreign currency the dollar amount of a/ay
charge-back or refund shall be calculated on the basis of the buying
sight rate for the foreign currency prevailing on the day when the
person entitled to the charge-back or refund learns that it will not
receive payment in ordinary course.

4—213. Final Payment of Item by Payor Bank; When Provisional
Debits and Credits Become Final; When Certain Credits Become
Available for Withdrawal.

(1) An item is finally paid by a payor bank when the bank has
done any of the following, whichever happens first:

(a)  paid the item in cash; or

(b)  settled for the item without reserving a right to revoke the