HARRY HUGHES, Governor                                       3717

(2) Unless otherwise agreed when documents appear on their
face to comply with the terms of a credit but a required document
does not in fact conform to the warranties made on negotiation or
transfer of a document of title (§ 7-507) or of a CERTIFICATED
security (§ 8-306) or is forged or fraudulent or there is fraud
in the transaction:

(a)  The issuer must honor the draft or demand for
payment if honor is demanded by a negotiating bank or other
holder of the draft or demand which has taken the draft or demand
under the credit and under circumstances which would make it a
holder in due course (§ 3-302) and in an appropriate case would
make it a person to whom a document of title has been duly
negotiated (§ 7-502) or a bona fide purchaser of a CERTIFICATED
security (§ 8-302); and

(b)  In all other cases as against its customer, an
issuer acting in good faith may honor the draft or demand for
payment despite notification from the customer of fraud, forgery
or other defect not apparent on the face of the documents but a
court of appropriate jurisdiction may enjoin such honor.

8-101.

This title shall be known and may be cited as Maryland
Uniform Commercial Code — Investment Securities.

8-102.

(1) In this title unless the context otherwise requires:

(a) [A "security" is an instrument which

(i) Is issued in bearer or registered form; and

(ii) Is of a type commonly dealt in upon
securities exchanges or markets or commonly recognized in any
area in which it is issued or dealt in as a medium for
investment; and

(iii) Is either one of a class or series or by
its terms is divisible into a class or series of instruments; and

(iv) Evidences a share, participation or other
interest in property or in an enterprise or evidences an
obligation of the issuer.] A "CERTIFICATED SECURITY" IS A SHARE,
PARTICIPATION, OR OTHER INTEREST IN PROPERTY OF, OR AN ENTERPRISE
OF, THE ISSUER OR AN OBLIGATION OF THE ISSUER WHICH IS:

(I)  REPRESENTED BY AN INSTRUMENT ISSUED IN
BEARER OR REGISTERED FORM;

(II)  OF A TYPE COMMONLY DEALT IN ON SECURITIES
EXCHANGES OR MARKETS OR COMMONLY RECOGNIZED IN ANY AREA IN WHICH
IT IS ISSUED OR DEALT IN AS A MEDIUM FOR INVESTMENT; AND