160

LAWS OF MARYLAND

[Ch. 49

demand or time certificate of deposit accrues upon
demand, but demand on a time certificate may not be made
until on or after the date of maturity.

(3) A cause of action against a drawer of a draft
or an indorser of any instrument accrues upon demand
following dishonor of the instrument, notice of dishonor
is a demand.

(4) Unless an instrument provides otherwise,
interest runs at the rate provided by law for a judgment.

(a)   In the case of a maker, acceptor or other
primary obligor of a demand instrument, from the date of
demand;

(b)    In all other cases from the date of
accrual of the cause of action.

SUBTITLE 2. TRANSFER AND NEGOTIATION.

3—201. Transfer[; ]: Right to indorsement.

(1)    Transfer of an instrument vests in the
transferee such rights as the transferor has therein,
except that a transferee who has himself been a party to
any fraud or illegality affecting the instrument or who
as a prior holder had notice of a defense or claim
against it cannot improve his position by taking from a
later holder in due course.

(2)    A transfer of a security interest in an
instrument vests the foregoing rights in the transferee
to the extent of the interest transferred.

(3)   Unless otherwise agreed any transfer for value
of an instrument not then payable to bearer gives the
transferee the specifically enforceable right to have the
unqualified indorsement of the transferor. Negotiation
takes effect only when the indorsement is made and until
that time there is no presumption that the transferee is
the owner.

3-202. Negotiation.

(1)   Negotiation is the transfer of an instrument in
such form that the transferee becomes a holder. If the
instrument is payable to order it is negotiated by
delivery with any necessary indorsement; if payable to
bearer it is negotiated by delivery.

(2)   An indorsement must be written by or on behalf
of the holder and on the instrument or on a paper so
firmly affixed thereto as to become a part thereof.