Ch. 534

LAWS OF MARYLAND

CHAPTER 534

(House Bill 1084)

AN ACT concerning

Commercial Law - Checks and Other Instruments - Dishonor

FOR the purpose of authorizing the holder of a dishonored check
or other instrument to recover certain amounts from the
maker or drawer under certain conditions; clarifying,
language; providing for certain exceptions; providing for a
certain procedure for recovery under this Act; providing for
certain defenses; altering the form for a certain notice to
the maker or drawer of a dishonored check or other
instrument; altering the period of time after a certain
notice of a dishonored check or other instrument within
which a maker or drawer may avoid certain liabilities and
criminal prosecutions; providing for the application of this
Act; making stylistic changes; and generally relating to the
presentment and dishonor of commercial paper.

BY repealing and reenacting, with amendments,

Article - Commercial Law
Section 3-512, 3-513, and 3-514
Annotated Code of Maryland
(1975 Volume and 1986 Supplement)

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

Article - Commercial Law

3-512.

(1)  When a check or other instrument has been dishonored by
nonacceptance or nonpayment and has not been paid within 10 days,
the holder to whom the check or other instrument was issued may
send a notice of dishonor to the maker or drawer as provided
under this section.

(2)   [The) IF A CHECK OR OTHER INSTRUMENT HAS NOT BEEN PAID
WITHIN 30 DAYS AFTER THE HOLDER HAS SENT A NOTICE OF DISHONOR TO
THE MAKER OR DRAWER, THE maker or drawer of a check or other
instrument that has been dishonored [shall] MAY be liable for [a
collection fee of $25.]:

(A)  THE AMOUNT OF THE CHECK OR INSTRUMENT;

(B)  A COLLECTION FEE OF $25; AND

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