206

LAWS OF MARYLAND

[Ch. 49

Unless otherwise instructed and except as provided
in [subtitle] TITLE 5 a bank presenting a documentary

draft

(a)   Must deliver the documents to the drawee
on acceptance of the draft if it is payable more than
three days after presentment; otherwise, only on payment;
and

(b)   Upon dishonor, either in the case of
presentment for acceptance or presentment for payment,
may seek and follow instructions from any referee in case
of need designated in the draft or if the presenting bank
does not choose to utilize his services it must use
diligence and good faith to ascertain the reasons for
dishonor, must notify its transferor of the dishonor and
of the results of its effort to ascertain the reasons
therefor and must request instructions.

But the presenting bank is under no obligation with
respect to goods represented by the documents except to
follow any reasonable instructions seasonably received;
it has a right to reimbursement for any expense incurred
in following instructions and to prepayment of or
indemnity for such expenses.

4—504. Privilege of presenting bank to deal with goods;
security interest for expenses.

(1)   A presenting bank which, following the dishonor
of a documentary draft, has seasonably requested
instructions but does not receive them within a
reasonable time may store, sell, or otherwise deal with
the goods in any reasonable manner.

(2)    For its reasonable expenses incurred by action
under subsection (1) the presenting bank has a lien upon
the goods or their proceeds, which may be foreclosed in
the same manner as an unpaid seller's lien.

TITLE 5. LETTERS OF CREDIT.

5-101. Short title.

This [subtitle] TITLE shall be known and may be
cited as MARYLAND Uniform Commercial Code—Letters of
Credit.

5—102. Scope.

(1) This [subtitle] TITLE applies

(a) To a credit issued by a bank if the
credit requires a documentary draft or a documentary