192

LAWS OF MARYLAND

[Ch. 49

and

(c)    Settling for an item when the bank
receives final settlement; and

(d)   Making or providing for any necessary
protest; and

(e)    Notifying its transferor of any loss or
delay in transit within a reasonable time after discovery
thereof.

(2)   A collecting bank taking proper action before
its midnight deadline following receipt of an item,
notice or payment acts seasonably; taking proper action
within a reasonably longer time may be seasonable but the
bank has the burden of so establishing.

(3)    Subject to subsection (1) (a), a bank is not
liable for the insolvency, neglect, misconduct, mistake
or default of another bank or person, or for loss or
destruction of an item in transit or in the possession of
others.

4—203. Effect of instructions.

Subject to the provisions of [subtitle] TITLE 3
concerning conversion of instruments (§ 3—419) and the
provisions of both [subtitle] TITLE 3 and this [subtitle]
TITLE concerning restrictive indorsements only a
collecting bank's transferor can give instructions which
affect the bank or constitute notice to it and a
collecting bank is not liable to prior parties for any
action taken pursuant to such instructions or in
accordance with any agreement with its transferor.

4—204. Methods of sending and presenting; sending direct
to payor bank.

(1)   A collecting bank must send items by reasonably
prompt method taking into consideration any relevant
instructions, the nature of the item, the number of such
items on hand, and the cost of collection involved and
the method generally used by it or others to present such
items.

(2)   A collecting bank may send

(a)   Any item direct to the payor bank;

(b)    Any item to any non—bank payor if
authorized by its transferor; and

(c) Any item other than documentary drafts to