Ch. 405                                    LAWS OF MARYLAND

THIS ACTION WITHIN THE TIME THAT THE DEPOSITORY BANK OTHERWISE
WOULD BE REQUIRED UNDER THE REGULATIONS ADOPTED UNDER THIS
SUBTITLE TO MAKE FUNDS AVAILABLE TO THE CUSTOMER;

(4)  A DEPOSITORY BANK MAY FIND THAT THE
COLLECTIBILITY OF AN ITEM IS DOUBTFUL, IF:

(I). THE DEPOSITORY BANK HAS REASON TO BELIEVE
THAT THE MAKER, DRAWER, OR PAYOR OF THE ITEM IS INSOLVENT;

(II)  THE ITEM CONTAINS AN INFIRMITY ON ITS
FACE, INCLUDING A FORGERY, AN ALTERATION, OR FALSE OR FRAUDULENT
INDICATION OF THE DRAWER'S, MAKER'S, OR PAYOR'S NAME OR ROUTING
NUMBER; OR

(III)  THE MANNER OF PRESENTMENT OF THE ITEM
RAISES A REASONABLE SUSPICION OF FRAUD;

(5)  FOR ANY ITEM IN EXCESS OF $2,500 DEPOSITED BY A
CUSTOMER IN ONE 1 BUSINESS DAY, THE AVAILABILITY OF FUNDS FOR THE
ITEM SHALL BE DETERMINED ACCORDING TO THE BANKING INSTITUTION'S
POLICY, OR IF THE CUSTOMER ELECTS, ON A COLLECTION BASIS;

(6)  FOR ANY ITEM DEPOSITED BY A NEW CUSTOMER AT A
DEPOSITORY BANK, THE AVAILABILITY OF FUNDS FOR ANY ITEM DEPOSITED
WITHIN 90 CALENDAR DAYS OF THE OPENING OF AN ACCOUNT BY THE
CUSTOMER SHALL BE SUBJECT TO THE BANKING INSTITUTION'S POLICY;

(7)  EXCEPT FOR ACCOUNTS WITH OVERDRAFT PROTECTION IN
WHICH THE CUSTOMER'S CREDIT LINE HAS NOT BEEN EXCEEDED, IF ANY
ACCOUNT OR COMBINATION OF ACCOUNTS OF A CUSTOMER HAS BEEN
OVERDRAWN HAD ITEMS-AN ITEM RETURNED ON 3 SEPARATE OCCASIONS
BUSINESS DAYS WITHIN A 6-MONTH PERIOD, ALL ACCOUNTS OF THAT
CUSTOMER SHALL BE SUBJECT TO THE BANKING INSTITUTION'S POLICY FOR
A PERIOD OF 6 MONTHS AFTER THE THIRD 3RD RETURN FOR INSUFFICIENT
FUNDS.

(C) THE BANK COMMISSIONER MAY GATHER FROM BANKING
INSTITUTIONS IN THE STATE ANY INFORMATION REQUIRED BY THE BANK
COMMISSIONER FOR THE ADOPTION OF REGULATIONS UNDER THIS SECTION.

(D) THE REGULATIONS ADOPTED UNDER THIS SECTION SHALL
REQUIRE EACH BANKING INSTITUTION TO:

(1) NOTIFY EACH OF ITS BANKING CUSTOMERS IN WRITING
OF THE APPLICABLE TIME LIMITATIONS AND THE BANKING INSTITUTION'S
POLICY ON THE RIGHT TO DRAW ON ITEMS RECEIVED PER DEPOSIT IN THE

CUSTOMER'S ACCOUNT; AND

(2) KEEP POSTED IN A CONSPICUOUS LOCATION, AT EACH
BRANCH OF THE BANKING INSTITUTION, A NOTICE THAT SUBSTANTIALLY
SETS FORTH THE GENERALLY APPLICABLE TIME LIMITATIONS AND THE

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