196

LAWS OF MARYLAND

[Ch. 49

(b) of § 9-203); and

(b)   No filing is required to perfect the
security interest; and

(c)    The security interest has priority over
conflicting perfected security interests in the item,
accompanying documents or proceeds.

4—209. When bank gives value for purposes of holder in
due course.

For purposes of determining its status as a holder
in due course, the bank has given value to the extent
that it has a security interest in an item provided that
the bank otherwise complies with the requirements of §
3—302 on what constitutes a holder in due course.

4-210. Presentment by notice of item not payable by,
through or at a bank; liability of secondary parties.

(1)    Unless otherwise instructed, a collecting bank
may present an item not payable by, through or at a bank
by sending to the party to accept or pay a written notice
that the bank holds the item for acceptance or payment.
The notice must be sent in time to be received on or
before the day when presentment is due and the bank must
meet any requirement of the party to accept or pay under
§ 3—505 by the close of the bank's next banking day after
it knows of the requirement.

(2)   Where presentment is made by notice and neither
honor nor request for compliance with a requirement under
§ 3—505 is received by the close of business on the day
after maturity or in the case of demand items by the
close of business on the third banking day after notice
was sent, the presenting bank may treat the item as
dishonored and charge any secondary party by sending him
notice of the facts.

4—211. Media of remittance; provisional and final
settlement in remittance cases.

(1) 1 collecting bank may take in settlement of an
item

(a)   A check of the remitting bank or of
another bank on any bank except the remitting bank; or

(b)    A cashier's check or similar primary
obligation of a remitting bank which is a member of or
clears through a member of the same clearing house or
group as the collecting bank; or