OVERDRAWN ON 3 SEPARATE OCCASIONS HAD A CHECK AN ITEM RETURNED ON
3 SEPARATE 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 FOR 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 FOR THE THE GENERALLY APPLICABLE TIME LIMITATIONS AND THE
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

Ch. 481

LAWS OF MARYLAND

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