202

LAWS OF MARYLAND

[Ch. 49

for the item, comes too late to so terminate, suspend or
modify such right or duty if the knowledge, notice,
stop-order or legal process is received or served and a
reasonable time for the bank to act thereon expires or
the set—off is exercised after the bank has done any of
the following:

(a)   Accepted or certified the item;

(b)   Paid the item in cash;

(c) Settled for the item without reserving a
right to revoke the settlement and without having such
right under statute, clearing house rule or agreement;

(d) Completed the process of posting the item
to the indicated account of the drawer, maker or other
person to be charged therewith or otherwise has evidenced
by examination of such indicated account and by action
its decision to pay the item; or

(e) Become accountable for the amount of the
item under subsection (1) (d) of § 1-213 and § 4—302
dealing with the payor bank's responsibility for late
return of items.

(2) Subject to the provisions of subsection (1)
items may be accepted, paid, certified or charged to the
indicated account of its customer in any order convenient
to the bank.

SUBTITLE 4. RELATIONSHIP BETWEEN PAYOR BANK AID ITS
CUSTOMER.

4—401. When bank may charge customer's account.

(1)   As against its customer, a bank may charge
against his account any item which is otherwise properly
payable from that account even though the charge creates
an overdraft.

(2)    A bank which in good faith makes payment to a
holder may charge the indicated account of its customer
according to

(a)    The original tenor of his altered item;
or

(b)   The tenor of his completed item, even
though the bank knows the item has been completed unless
the bank has notice that the completion was improper.

4—402. Bank's liability to customer for wrongful
dishonor.