MARVIN MANDEL, Governor

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paragraphs (a) or (b) of § 5-102 (1) on scope, the

receipt or allocation of funds or collateral to secure or

meet obligations under the credit shall have the
following results[;]:

(a)    To the extent of any funds or collateral
turned over after or before the insolvency as indemnity
against or specifically for the purpose of payment of
drafts or demands for payment drawn under the designated
credit, the drafts or demands are entitled to payment in
preference over depositors or other general creditors of
the issuer or bank; and

(b)    On expiration of the credit or surrender
of the beneficiary's rights under it unused any person
who has given such funds or collateral is similarly
entitled to return thereof; and

(c)   A charge to a general or current account
with a bank if specifically consented to for the purpose
of indemnity against or payment of drafts or demands for
payment drawn under the designated credit falls under the
same rules as if the funds have been drawn out in cash
and then turned over with specific instructions.

(2)   After honor or reimbursement under this section
the customer or other person for whose account the
insolvent bank has acted is entitled to receive the
documents involved.

TITLE 6. BULK TRANSFERS.

6-101. Short title.

This [subtitle] TITLE shall be known and may be
cited as MARYLAND Uniform Commercial Code—Bulk
Transfers.

6—102. "Bulk transfer"; transfers of equipment;
enterprises subject to this [subtitle] TITLE; bulk
transfers subject to this [subtitle] TITLE.

(1) A "bulk transfer" is any transfer in bulk and
not in the ordinary course of the transferor's business
of a major part of the materials, supplies, merchandise
or other inventory (§ 9—109) of an enterprise subject to
this [subtitle] TITLE.

(2) A transfer of a substantial part of the
equipment (§ 9—109) of such an enterprise is a bulk
transfer if it is made in connection with a bulk transfer
of inventory, but not otherwise.

(3)   The enterprises subject to this [subtitle]