878                               LAWS OF MARYLAND                        [CH. 538

subsequent purchaser even though the later purchased draft or de-
mand has been first honored.

5—109. Issuer's Obligation to Its Customer.

(1)  An issuer's obligation to its customer includes good faith and
observance of any general banking usage but unless otherwise agreed
does not include liability or responsibility

(a)  for performance of the underlying contract for sale or other
transaction between the customer and the beneficiary; or

(b)  for any act or omission of any person other than itself or its
own branch or for loss or destruction of a draft, demand or document
in transit or in the possession of others; or

(c)  based on knowledge or lack of knowledge of any usage of any
particular trade.

(2)  An issuer must examine documents with care so as to ascertain
that on their face they appear to comply with the terms of the credit
but unless otherwise agreed assumes no liability or responsibility for
the genuineness, falsification or effect of any document which appears
on such examination to be regular on its face.

(3)  A non-bank issuer is not bound by any banking usage of which
it has no knowledge.

5—110. Availability of Credit in Portions; Presenter's Reservation
of Lien or Claim.

(1)   Unless otherwise specified a credit may be used in portions in
the discretion of the beneficiary.

(2)   Unless otherwise specified a person by presenting a docu-
mentary draft or demand for payment under a credit relinquishes
upon its honor all claims to the documents and a person by trans-
ferring such draft or demand or causing such presentment authorizes
such relinquishment. An explicit reservation of claim makes the
draft or demand non-complying.

5—111. Warranties on Transfer and Presentment.

(1)   Unless otherwise agreed the beneficiary by transferring or
presenting a documentary draft or demand for payment warrants
to all interested parties that the necessary conditions of the credit
have been complied with. This is in addition to any warranties
arising under Sub-titles 3, 4, 7 and 8.

(2)   Unless otherwise agreed a negotiating, advising, confirming,
collecting or issuing bank presenting or transferring a draft or
demand for payment under a credit warrants only the matters
warranted by a collecting bank under Sub-title 4 and any such other
transferring a document warrants only the matters warranted by
an intermediary under Sub-titles 7 and 8.

5—112. Time Allowed for Honor or Rejection; Withholding Honor
or Rejection by Consent; "Presenter".

(1) A bank to which a documentary draft or demand for payment