178

LAWS OF MARYLAND

[Ch. 49

(c)    That the instrument be produced for
acceptance or payment at a place specified in it, or if
there be none at any place reasonable in the
circumstances; and

(d)    A signed receipt on the instrument for
any partial or fall payment and its surrender upon full
payment.

(2) Failure to comply with any such requirement
invalidates the presentment but the person presenting has
a reasonable time in which to comply and the time for
acceptance or payment runs from the time of compliance.

3—506. Time allowed for acceptance or payment.

(1)    Acceptance may be deferred without dishonor
until the close of the next business day following
presentment. The holder may also in a good faith effort
to obtain acceptance and without either dishonor of the
instrument or discharge of secondary parties allow
postponement of acceptance for an additional business
day.

(2)   Except as a longer time is allowed in the case
of documentary drafts drawn under a letter of credit, and
unless an earlier time is agreed to by the party to pay,
payment of an instrument may be deferred without dishonor
pending reasonable examination to determine whether it is
properly payable, but payment must be made in any event
before the close of business on the day of presentment.

3—507. Dishonor; holder's right of recourse; term
allowing re—presentment.

(1)   An instrument is dishonored when

(a)   A necessary or optional presentment is
duly made and due acceptance or payment is refused or
cannot be obtained within the prescribed time or in case
of bank collections the instrument is seasonably returned
by the midnight deadline (§ 4-301); or

(b)   Presentment is excused and the instrument
is not duly accepted or paid.

(2)   Subject to any necessary notice of dishonor and
protest, the holder has upon dishonor an immediate right
of recourse against the drawers and indorsers.

(3)   Return of an instrument for lack of proper
indorsement is not dishonor.

(4)    A term in a draft or an indorsement thereof