HARRY HUGHES, Governor                                     1825

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apply to certain credit or loan obligations; providing for a
certain notice to be sent by the holder to the maker or
drawer of a dishonored check; providing for the form of the
notice; providing that this Act shall constitute an
alternative right of recourse; and generally relating to the
presentment and dishonor of commercial paper.

BY adding to

Article - Commercial Law
Section 3-512, 3-513, and 3-514
Annotated Code of Maryland
(1975 Volume and 1985 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF

MARYLAND, That the Laws of Maryland read as follows:

Article - Commercial Law

3-512.

(1)  WHEN A CHECK OR OTHER INSTRUMENT HAS BEEN DISHONORED BY
NONACCEPTANCE OR NONPAYMENT AND HAS NOT BEEN PAID WITHIN 10 DAYS,
THE HOLDER TO WHOM THE CHECK OR OTHER INSTRUMENT WAS ISSUED MAY
SEND A NOTICE OF DISHONOR TO THE MAKER OR DRAWER AS PROVIDED
UNDER THIS SECTION.

(2)  THE MAKER OR DRAWER OF A CHECK OR OTHER INSTRUMENT THAT
HAS BEEN DISHONORED SHALL BE LIABLE FOR A COLLECTION FEE OF $10

$25.
3-513.

(1) A NOTICE OF DISHONOR SENT BY A HOLDER TO A MAKER OR
DRAWER UNDER § 3-512 OF THIS SUBTITLE SHALL SUBSTANTIALLY COMPLY
WITH THE FOLLOWING FORM:

"NOTICE OF DISHONORED CHECK

DATE_____________________________________________

NAME OF ISSUER ____________________________________

STREET ADDRESS ____________________________________

CITY AND STATE

YOU ARE ACCORDING TO LAW HEREBY NOTIFIED THAT A CHECK OR

INSTRUMENT NUMBERED_________AND DATED ______________, 19 __,

DRAWN ON THE ______________ BANK OF ________________________ IN

THE AMOUNT OF _________ HAS BEEN RETURNED UNPAID WITH THE

NOTATION THE PAYMENT HAS BEEN REFUSED BECAUSE OF

_______________. WITHIN 10 DAYS FROM THE MAILING OF THIS

NOTICE, YOU MUST PAY OR TENDER TO

(HOLDER)