WILLIAM DONALD SCHAEFER, Governor                        Ch. 6

(b) The Bank Commissioner shall adopt regulations that
provide:

(1)  For purposes of calculating the number of
business days by which a depository bank is required to make
funds available for withdrawal by the customer, the term
"business day" excludes the day of deposit, and if the deposit is
made on a Saturday, Sunday, legal holiday, or after the close of
business, the term "business day" excludes the 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 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;

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