184

LAWS OF MARYLAND

[Ch. 49

party has to the knowledge of the holder a right of
recourse or agrees to suspend the right to enforce
against such person the instrument or collateral or
otherwise discharges such person, except that failure or
delay in effecting any required presentment, protest or
notice of dishonor with respect to any such person does
not discharge any party as to whom presentment, protest
or notice of dishonor is effective or unnecessary; or

(b) Unjustifiably impairs any collateral for
the instrument given by or on behalf of the party or any
person against whom he has a right of recourse.

(2) By express reservation of rights against a
party with a right of recourse the holder preserves

(a)   All his rights against such party as of
the time when the instrument was originally due; and

(b)    The right of the party to pay the
instrument as of that time; and

(c)   All rights of such party to recourse
against others.

SUBTITLE 7. ADVICE OF INTERNATIONAL SIGHT DRAFT.

3—701. Letter of advice of international sight draft.

(1)     A "letter of advice" is a drawer's
communication to the drawee that a described draft has
been drawn.

(2)    Unless otherwise agreed when a bank receives
from another bank a letter of advice of an international
sight draft the drawee bank may immediately debit the
drawer's account and stop the running of interest pro
tanto. Such a debit and any resulting credit to any
account covering outstanding drafts leaves in the drawer
full power to stop payment or otherwise dispose of the
amount and creates no trust or interest in favor of the
holder.

(3)    Unless otherwise agreed and except where a
draft is drawn under a credit issued by the drawee, the
drawee of an international sight draft owes the drawer no
duty to pay an unadvised draft but if it does so and the
draft is genuine, may appropriately debit the drawer's
account.

SUBTITLE 8. MISCELLANEOUS.

3—801. Drafts in a set.