PARRIS N. GLENDENING, Governor                               Ch. 91

3-104.

(A)    EXCEPT AS PROVIDED IN SUBSECTIONS (C) AND (D), "NEGOTIABLE
INSTRUMENT' MEANS AN UNCONDITIONAL PROMISE OR ORDER TO PAY A FIXED
AMOUNT OF MONEY, WITH OR WITHOUT INTEREST OR OTHER CHARGES DESCRIBED
IN THE PROMISE OR ORDER, IF IT:

(1)     IS PAYABLE TO BEARER OR TO ORDER AT THE TIME IT IS ISSUED OR
FIRST COMES INTO POSSESSION OF A HOLDER;

(2)     IS PAYABLE ON DEMAND OR AT A DEFINITE TIME; AND

(3)     DOES NOT STATE ANY OTHER UNDERTAKING OR INSTRUCTION BY
THE PERSON PROMISING OR ORDERING PAYMENT TO DO ANY ACT IN ADDITION TO
THE PAYMENT OF MONEY, BUT THE PROMISE OR ORDER MAY CONTAIN (I) AN
UNDERTAKING OR POWER TO GIVE, MAINTAIN, OR PROTECT COLLATERAL TO
SECURE PAYMENT, (II) AN AUTHORIZATION OR POWER TO THE HOLDER TO
CONFESS JUDGMENT OR REALIZE ON OR DISPOSE OF COLLATERAL, OR (III) A
WAIVER OF THE BENEFIT OF ANY LAW INTENDED FOR THE ADVANTAGE OR
PROTECTION OF AN OBLIGOR.

(B)     "INSTRUMENT' MEANS A NEGOTIABLE INSTRUMENT.

(C)     AN ORDER THAT MEETS ALL OF THE REQUIREMENTS OF SUBSECTION (A),
EXCEPT PARAGRAPH (1), AND OTHERWISE FALLS WITHIN THE DEFINITION OF
"CHECK" IN SUBSECTION (F) IS A NEGOTIABLE INSTRUMENT AND A CHECK.

(D)    A PROMISE OR ORDER OTHER THAN A CHECK IS NOT AN INSTRUMENT IF,
AT THE TIME IT IS ISSUED OR FIRST COMES INTO POSSESSION OF A HOLDER, IT
CONTAINS A CONSPICUOUS STATEMENT, HOWEVER EXPRESSED, TO THE EFFECT
THAT THE PROMISE OR ORDER IS NOT NEGOTIABLE OR IS NOT AN INSTRUMENT
GOVERNED BY THIS TITLE.

(E)     AN INSTRUMENT IS A "NOTE" IF IT IS A PROMISE AND IS A "DRAFT" IF IT
IS AN ORDER. IF AN INSTRUMENT FALLS WITHIN THE DEFINITION OF BOTH "NOTE"
AND "DRAFT", A PERSON ENTITLED TO ENFORCE THE INSTRUMENT MAY TREAT IT
AS EITHER.

(F)     "CHECK" MEANS (I) A DRAFT, OTHER THAN A DOCUMENTARY DRAFT,
PAYABLE ON DEMAND AND DRAWN ON A BANK OR (II) A CASHIER'S CHECK OR
TELLER'S CHECK AN INSTRUMENT MAY BE A CHECK EVEN THOUGH IT IS
DESCRIBED ON ITS FACE BY ANOTHER TERM, SUCH AS "MONEY ORDER".

(G)    "CASHIER'S CHECK" MEANS A DRAFT WITH RESPECT TO WHICH THE
DRAWER AND DRAWEE ARE THE SAME BANK OR BRANCHES OF THE SAME BANK

(H) "TELLER'S CHECK" MEANS A DRAFT DRAWN BY A BANK (I) ON ANOTHER
BANK, OR (II) PAYABLE AT OR THROUGH A BANK

(I) "TRAVELER'S CHECK" MEANS AN INSTRUMENT THAT (I) IS PAYABLE ON
DEMAND, (II) IS DRAWN ON OR PAYABLE AT OR THROUGH A BANK, (III) IS
DESIGNATED BY THE TERM "TRAVELER'S CHECK" OR BY A SUBSTANTIALLY

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