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LAWS OF MARYLAND

[Ch. 49

of warranty on presentment under the preceding section,
payment or acceptance of any instrument is final in favor
of a holder in due coarse, or a person who has in good
faith changed his position in reliance on the payment.

3—419. Conversion of instrument; innocent
representative.

(1)   An instrument is converted when

fa) A drawee to whom it is delivered for
acceptance refuses to return it on demand; or

(b)    Any person to whom it is delivered for
payment refuses on demand either to pay or to return it;
or

(c)   It is paid on a forged indorsement.

(2)    In an action against a drawee under subsection
ft) the measure of the drawee's liability is the face
amount of the instrument. In any other action under
subsection (1) the measure of liability is presumed to be
the face amount of the instrument.

(3)   Subject to the provisions of TITLES 1 THROUGH
10 OF this article concerning restrictive indorsements a
representative, including a depositary or collecting
bank, who has in good faith and in accordance with the
reasonable commercial standards applicable to the
business of such representative dealt with an instrument
or its proceeds on behalf of one who was not the true
owner is not liable in conversion or otherwise to the
true owner beyond the amount of any proceeds remaining in
his hands.

(4) An intermediary bank or payor bank which is not
a depositary bank is not liable in conversion solely by
reason of the fact that proceeds of an item indorsed
restrictively (§§ 3—205 and 3—206) are not paid or
applied consistently with the restrictive indorsement of
an indorser other than its immediate transferor.

SUBTITLE 5. PRESENTMENT, NOTICE OF DISHONOR AND PROTEST.

3-501. When presentment, notice of dishonor, and protest
necessary or permissible.

(1) Unless excused (§ 3—511) presentment is
necessary to charge secondary parties as follows:

(a) Presentment for acceptance is necessary
to charge the drawer and indorsers of a draft where the
draft so provides, or is payable elsewhere than at the