WILLIAM DONALD SCHAEFER, Governor                   Ch. 481

BUSINESS, THE TERM "BUSINESS DAY" EXCLUDES THE FIRST 1ST BUSINESS
DAY AFTER THE DAY OF DEPOSIT, WHERE:

(I)  A LEGAL HOLIDAY IS A HOLIDAY ON WHICH THE
DEPOSITORY BANK IS CLOSED; AND

(II)  THE CLOSE OF BUSINESS FOR A DEPOSITORY
BANK IS THE CLOSING TIME OF THE BRANCH OFFICE WHERE THE DEPOSIT
IS MADE, AS DETERMINED BY THE DEPOSITORY BANK, AND FOR AN
ELECTRONIC BANKING FACILITY, THE CLOSE OF BUSINESS IS THE CLOSING
TIME OF THE NEAREST BRANCH OFFICE OF THE DEPOSITORY BANK;

(2)  IF A DEPOSITORY BANK DOES NOT COLLECT ITEMS
DIRECTLY THROUGH A CLEARINGHOUSE, FEDERAL RESERVE, OR OTHER
COLLECTION SYSTEM AND USES ANOTHER FINANCIAL INSTITUTION TO
COLLECT ON ITEMS, THE DEPOSITORY BANK SHALL HAVE AN ADDITIONAL
BUSINESS DAY WITHIN WHICH TO MAKE FUNDS AVAILABLE TO A CUSTOMER;

(3)  WHEN A DEPOSITORY BANK FINDS THAT THE
COLLECTIBILITY OF AN ITEM IS DOUBTFUL, THE DEPOSITORY BANK MAY
MAKE FUNDS AVAILABLE FOR THE ITEM ON A COLLECTION BASIS IF THE
DEPOSITORY BANK NOTIFIES THE CUSTOMER ORALLY OR IN WRITING OF
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

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