200

LAWS OF MARYLAND

[Ch. 49

opening of the bank's next banking day following receipt
of the deposit.

4—214. Insolvency and preference,

(1)   Any item in or coming into the possession of a
payor or collecting bank which suspends payment and which
item is not finally paid shall be returned by the
receiver, trustee or agent in charge of the closed bank
to the presenting bank or the closed bank's customer.

(2)    If a payor bank finally pays an item and
suspends payments without making a settlement for the
item with its customer or the presenting bank which
settlement is or becomes final, the owner of the item has
a preferred claim against the payor bank.

(3)   If a payor bank gives or a collecting bank
gives or receives a provisional settlement for an item
and thereafter suspends payments, the suspension does not
prevent or interfere with the settlement becoming final
if such finality occurs automatically upon the lapse of
certain time or the happening of certain events
(subsection (3) of § 4—211, subsection (1) (d), (2) and
(3) of § 4-213).

(4)   If a collecting bank receives from subsequent
parties settlement for an item which settlement is or
becomes final and suspends payments without making a
settlement for the item with its customer which is or
becomes final, the owner of the item has a preferred
claim against such collecting bank.

SUBTITLE 3. COLLECTION OF ITEMS: PAYOR BANKS.

4—301. Deferred posting; recovery of payment by return
of items; time of dishonor.

(1) Where an authorized settlement for a demand
item (other than a documentary draft) received by a payor
bank otherwise than for immediate payment over the
counter has been made before midnight of the banking day
of receipt the payor bank may revoke the settlement and
recover any payment if before it has made final payment
(subsection (1) of § 4—213) and before its midnight
deadline it

(a)   Returns the item; or

(b)    Sends written notice of dishonor or
nonpayment if the item is held for protest or is
otherwise unavailable for return.

(2) If a demand item is received by a payor bank