WILLIAM DONALD SCHAEFER, Governor Ch. 405

BANKING INSTITUTION'S POLICY ON THE BANKING CUSTOMER'S RIGHTS TO
DRAW ON ITEMS DEPOSITED TO THE CUSTOMER'S ACCOUNT.

(E) (D) THE REGULATIONS ADOPTED UNDER THIS SECTION DO NOT
APPLY TO FOREIGN ITEMS.

(F) (E) THE BANK COMMISSIONER MAY ADOPT, ON A DETERMINATION
BY THE BANK COMMISSIONER THAT THE UNIFORM APPLICATION OF A
REGULATION ADOPTED UNDER THIS SECTION RESULTS IN UNSOUND OR

UNSAFE BANKING PRACTICES, ANY FURTHER REGULATION THE BANK

COMMISSIONER CONSIDERS APPROPRIATE ADDITIONAL RULES AND

REGULATIONS NECESSARY TO CARRY OUT THE PROVISIONS OF THIS
SUBTITLE.

5-3A-04.

(A)  EXCEPT AS PROVIDED UNDER SUBSECTION (B) OF THIS
SECTION, ANY PROVISION IN AN AGREEMENT BETWEEN A BANKING
INSTITUTION AND ITS BANKING CUSTOMER THAT PROVIDES FOR A PERIOD
OF TIME LONGER THAN THE TIME PRESCRIBED UNDER THIS SECTION SHALL
BE CONSIDERED UNREASONABLE FOR PURPOSES OF TITLE 4 OF THE
COMMERCIAL LAW ARTICLE, AND THE MAXIMUM PERIOD OF TIME PERMITTED
BY REGULATION UNDER THIS SUBTITLE SHALL APPLY.

(B)  THIS SECTION DOES NOT PROHIBIT A BANKING INSTITUTION
AND A BANKING CUSTOMER FROM AGREEING IN WRITING TO A GREATER
PERIOD OF TIME THAN THAT PRESCRIBED BY REGULATION UNDER THIS
SUBTITLE FOR DRAWING AGAINST ITEMS UNDER SPECIAL CIRCUMSTANCES

IF:

(1)  THE AGREEMENT IS NOT CONTAINED IN A PREPRINTED
FORM; AND

(2)  THE AGREEMENT IS NOT A USUAL, REGULAR BUSINESS
PRACTICE OF THE BANKING INSTITUTION.

(C)  EXCEPT AS PROVIDED IN SUBSECTION (A) OF THIS SECTION,
THE PROVISIONS OF THIS SUBTITLE DO NOT ALTER OR IMPAIR ANY RIGHT
OR OBLIGATION UNDER THE UNIFORM COMMERCIAL CODE.

5-309.

(a) In this section, "payor institution" means a bank,
credit union, or savings and loan association by which an item is
payable as drawn or accepted.

(b) As to each account of each depositor in a banking
institution, the banking institution shall give to the customer,
on opening of the account and on any later demand of the
customer, written notice of the GENERALLY APPLICABLE TIME
LIMITATIONS AND THE BANK'S POLICY ON THE RIGHT TO DRAW ON ITEMS
RECEIVED FOR DEPOSIT IN THE CUSTOMER'S ACCOUNT AND THE time after
which the funds represented by an item deposited to the account

- 2067 -