WILLIAM DONALD SCHAEFER, Governor                   Ch. 405

(F)  (1) "ITEM" MEANS ANY INSTRUMENT, WHETHER NEGOTIABLE OR
NONNEGOTIABLE, FOR THE PAYMENT OF MONEY.

(2) "ITEM" DOES NOT INCLUDE MONEY.

(G)  "LOCAL ITEM" MEANS ANY ITEM THAT IS PAYABLE AS DRAWN OR
ACCEPTED BY A FINANCIAL INSTITUTION THAT HAS A PRINCIPAL OFFICE
OR BRANCH OFFICE LOCATED IN THE STATE.

(H) "OUT-OF-STATE ITEM" MEANS ANY ITEM THAT IS PAYABLE AS
DRAWN OR ACCEPTED BY A FINANCIAL INSTITUTION THAT HAS ITS
PRINCIPAL PLACE OF BUSINESS IN THE UNITED STATES BUT NOT IN THIS
STATE.

(I) "RETURN OF AN ITEM" HAS THE MEANING SET FORTH IN §
4-301 OF THE COMMERCIAL LAW ARTICLE.

6-4A-02.

THE GENERAL ASSEMBLY DECLARES THAT IT IS THE PUBLIC POLICY
OF THE STATE TO ENSURE THAT ALL CUSTOMERS AND OR MEMBERS OF
CREDIT UNIONS ARE ABLE TO DRAW AGAINST ITEMS DEPOSITED FOR
COLLECTION IN ANY CREDIT UNION LOCATED IN AND INCORPORATED UNDER
THE LAWS OF THE STATE WITHIN A REASONABLE PERIOD OF TIME.

6-4A-03.

(A) THE BANK COMMISSIONER SHALL ADOPT REGULATIONS
ESTABLISHING A REASONABLE PERIOD OF TIME OF NOT MORE THAN:

(1)  3 BUSINESS DAYS, WITHIN WHICH A CREDIT UNION
SHALL BE REQUIRED TO PERMIT A CUSTOMER OR MEMBER OF A CREDIT
UNION TO DRAW, AS OF RIGHT, ON A LOCAL ITEM WHICH HAS BEEN
RECEIVED FOR DEPOSIT IN THE CUSTOMER'S OR MEMBER'S ACCOUNT IN THE
CREDIT UNION;

(2)  6 BUSINESS DAYS, WITHIN WHICH A CREDIT UNION
SHALL BE REQUIRED TO PERMIT A CUSTOMER OR MEMBER TO DRAW, AS OF
RIGHT, ON AN OUT-OF-STATE ITEM WHICH HAS BEEN RECEIVED FOR
DEPOSIT IN THE CUSTOMER'S OR MEMBER'S ACCOUNT IN THE CREDIT
UNION; AND

(3)  1 BUSINESS DAY WITHIN WHICH A CREDIT UNION SHALL
BE REQUIRED TO PERMIT A CUSTOMER OR MEMBER TO DRAW, AS OF RIGHT,
ON A STATE OR FEDERAL GOVERNMENT ITEM WHICH HAS BEEN RECEIVED FOR
DEPOSIT IN THE CUSTOMER'S OR MEMBER'S ACCOUNT IN THE CREDIT
UNION;

(4)  2 BUSINESS DAYS WITHIN WHICH A CREDIT UNION SHALL
BE REQUIRED TO PERMIT A CONSUMER A CUSTOMER OR MEMBER TO DRAW, AS
OF RIGHT, ON AN ITEM OF NOT MORE THAN $100, WHICH HAS BEEN
RECEIVED FOR DEPOSIT IN THE CUSTOMER'S OR MEMBER'S ACCOUNT IN THE
CREDIT UNION.

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