WILLIAM DONALD SCHAEFER, Governor                   Ch. 481

institutions are required to make funds available on deposits of
their customers and members; and

WHEREAS, The final form of this federal legislation has not
yet been determined; and

WHEREAS, It would     be preferable to have State-chartered

financial institutions       and federally chartered financial

institutions regulated    uniformly after the federal law is
enacted; and

WHEREAS, The General Assembly believes it is necessary to

regulate funds availability practices of State-chartered

financial institutions until such time as federal legislation
supersedes State law; now, therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Financial Institutions

SUBTITLE 3A. WITHDRAWAL OF ITEMS

5-3A-01.

(A)  IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(B)  "BUSINESS DAY" MEANS ANY DAY EXCLUDING SATURDAYS,
SUNDAYS, AND LEGAL HOLIDAYS.

(C)  "COLLECTION BASIS" MEANS FUNDS ARE MADE AVAILABLE TO A
CUSTOMER FOR AN ITEM WHEN THEY ARE COLLECTED BY THE DEPOSITORY
BANK.

(D)  "DEPOSITORY BANK" MEANS A BANKING INSTITUTION WHICH
MAINTAINS THE ACCOUNT INTO WHICH AN ITEM IS FIRST DEPOSITED.

(E)  "FOREIGN ITEM" MEANS ANY ITEM THAT IS PAYABLE AS DRAWN
OR ACCEPTED BY A FOREIGN FINANCIAL INSTITUTION THAT HAS ITS
PRINCIPAL PLACE OF BUSINESS IN A FOREIGN NATION AND DOES NOT HAVE
A SUBSIDIARY IN THE STATE.

(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.

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