198

LAWS OF MARYLAND

[Ch. 49

given by it, charge back the amount of any credit given
for the item to its customer's account or obtain refund
from its customer whether or not it is able to return the
item if by its midnight deadline or within a longer
reasonable time after it learns the facts it returns the
item or sends notification of the facts. These rights
to revoke, charge-back and obtain refund terminate if and
when a settlement for the item received by the bank is or
becomes final (subsection (3) of § 4—211 and subsections
(2) and (3) of § 4-213).

(2)   Within the time and manner prescribed by this
section and § 4—301, an intermediary or payor bank, as
the case may be, may return an unpaid item directly to
the depositary bank and may send for collection a draft
on the depositary bank and obtain reimbursement. In
such case, if the depositary bank has received
provisional settlement for the item, it must reimburse
the bank drawing the draft and any provisional credits
for the item between banks shall become and remain final.

(3)   A depositary bank which is also the payor may
charge—back the amount of an item to its customer's
account or obtain refund in accordance with the section
governing return of an item received by a payor bank for
credit on its books (§ 4-301).

(4)   The right to charge—back is not affected by

(a)   Prior use of the credit given for the
item; or

(b)    Failure by any bank to exercise ordinary
care with respect to the item but any bank so failing
remains liable.

(5)    A failure to charge—back or claim refund does
not affect other rights of the bank against the customer
or any other party.

(6)   If credit is given in dollars as the equivalent
of the value of an item payable in a foreign currency the
dollar amount of any charge—back or refund shall be
calculated on the basis of the buying sight rate for the
foreign currency prevailing on the day when the person
entitled to the charge—back or refund learns that it will
not receive payment in ordinary course.

4—213. Final payment of item by payor bank; when
provisional debits and credits become final; when certain
credits become available for withdrawal.

(1) An item is finally paid by a payor bank when
the bank has done any of the following, whichever happens