1974
LAWS OF MARYLAND
Ch. 541
(2) ["Draft"] "PAYMENT INSTRUMENT" includes a
check, DRAFT, money order, [traveler's check,] or other
instrument for the payment or transmission of money, WHETHER
OR NOT THE INSTRUMENT IS:
(I) NEGOTIABLE; OR
(II) SOLD TO ONE OR MORE PERSONS.
(3) "PAYMENT INSTRUMENT" DOES NOT INCLUDE:
(I) A TRAVELER'S CHECK;
(II) AN INSTRUMENT THAT THE ISSUER MAY
REDEEM IN MERCHANDISE OR SERVICES;
(III) A LETTER OF CREDIT; OR
(IV) A PERMISSIBLE INVESTMENT.
(F) "PERMISSIBLE INVESTMENT" MEANS:
(1) CASH;
(2) A CERTIFICATE OF DEPOSIT OR OTHER DEBT
INSTRUMENT OF A BANKING INSTITUTION, EXCEPT A CAPITAL NOTE;
(3) UNLESS FOUND BY THE BANK COMMISSIONER TO BE
UNACCEPTABLE:
(I) A BANKERS' ACCEPTANCE IF THE DRAFT IS
DRAWN ON AND ACCEPTED BY A BANKING INSTITUTION AND IS
ELIGIBLE FOR PURCHASE BY A MEMBER BANK OF THE FEDERAL
RESERVE SYSTEM;
(II) GENERAL OBLIGATIONS OF OR OBLIGATIONS
GUARANTEED BY THE UNITED STATES, ANY STATE, OR ANY OF THEIR
AGENCIES OR INSTRUMENTALITIES; OR
(III) A BILL, NOTE, BOND, DEBENTURE, OR
PREFERRED PREFERRED STOCK THAT IS TRADED ON A NATIONAL
OVER-THE-COUNTER MARKET OR EXCHANGE; AND
(IV) COMMERCIAL PAPER OF PRIME QUALITY AS
DEFINED BY A NATIONALLY RECOGNIZED ORGANIZATION THAT RATES
SECURITIES; AND
(V) ANY DEMAND BORROWING AGREEMENT OR
AGREEMENTS IN AN AMOUNT OR AGGREGATE AMOUNT WHICH DOES NOT
EXCEED 10 PERCENT OF THE NET WORTH OF THE COMPANY LIABLE FOR
PAYMENT UNDER THE AGREEMENT THEREOF AS SHOWN ON FINANCIAL
STATEMENTS CERTIFIED BY A CERTIFIED PUBLIC ACCOUNTANT
ACCEPTABLE TO THE BANK COMMISSIONER, WHICH COMPANY IS A
CORPORATION OR A SUBSIDIARY OF A CORPORATION WHOSE CAPITAL
STOCK IS LISTED ON A NATIONAL EXCHANGE AND IS NOT A LICENSEE
OR AGENT OF A LICENSEE UNDER THIS SUBTITLE. THE BORROWING
AGREEMENTS SHALL BE FILED WITH THE BANK COMMISSIONER IN
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