Ch. 91

1996 LAWS OF MARYLAND

(G) UNLESS GOVERNED BY OTHER LAW REGARDING CLAIMS FOR
INDEMNITY OR CONTRIBUTION, AN ACTION (I) FOR CONVERSION OF AN
INSTRUMENT, FOR MONEY HAD AND RECEIVED, OR LIKE ACTION BASED ON
CONVERSION, (II) FOR BREACH OF WARRANTY, OR (III) TO ENFORCE AN
OBLIGATION, DUTY, OR RIGHT ARISING UNDER THIS ARTICLE AND NOT GOVERNED
BY THIS SECTION MUST BE COMMENCED WITHIN 3 YEARS AFTER THE CAUSE OF
ACTION ACCRUES.

3-119.

IN AN ACTION FOR BREACH OF AN OBLIGATION FOR WHICH A THIRD PERSON
IS ANSWERABLE OVER PURSUANT TO THIS TITLE OR TITLE 4, THE DEFENDANT MAY
GIVE THE THIRD PERSON WRITTEN NOTICE OF THE LITIGATION, AND THE PERSON
NOTIFIED MAY THEN GIVE SIMILAR NOTICE TO ANY OTHER PERSON WHO IS
ANSWERABLE OVER. IF THE NOTICE STATES (I) THAT THE PERSON NOTIFIED MAY
COME IN AND DEFEND AND (II) THAT FAILURE TO DO SO WILL BIND THE PERSON
NOTIFIED IN AN ACTION LATER BROUGHT BY THE PERSON GIVING THE NOTICE AS
TO ANY DETERMINATION OF FACT COMMON TO THE TWO LITIGATIONS, THE
PERSON NOTIFIED IS SO BOUND UNLESS AFTER SEASONABLE RECEIPT OF THE
NOTICE THE PERSON NOTIFIED DOES COME IN AND DEFEND.

SUBTITLE 2 NEGOTIATION, TRANSFER, AND INDORSEMENT.
3-201.

(A)     "NEGOTIATION" MEANS A TRANSFER OF POSSESSION, WHETHER
VOLUNTARY OR INVOLUNTARY, OF AN INSTRUMENT BY A PERSON OTHER THAN
THE ISSUER TO A PERSON WHO THEREBY BECOMES ITS HOLDER.

(B)     EXCEPT FOR NEGOTIATION BY A REMITTER, IF AN INSTRUMENT IS
PAYABLE TO AN IDENTIFIED PERSON, NEGOTIATION REQUIRES TRANSFER OF
POSSESSION OF THE INSTRUMENT AND ITS INDORSEMENT BY THE HOLDER. IF AN
INSTRUMENT IS PAYABLE TO BEARER, IT MAY BE NEGOTIATED BY TRANSFER OF
POSSESSION ALONE.

3-202.

(A)    NEGOTIATION IS EFFECTIVE EVEN IF OBTAINED (I) FROM AN INFANT, A
CORPORATION EXCEEDING ITS POWERS, OR A PERSON WITHOUT CAPACITY, (II) BY
FRAUD, DURESS, OR MISTAKE, OR (III) IN BREACH OF DUTY OR AS PART OF AN
ILLEGAL TRANSACTION.

(B)     TO THE EXTENT PERMITTED BY OTHER LAW, NEGOTIATION MAY BE
RESCINDED OR MAY BE SUBJECT TO OTHER REMEDIES, BUT THOSE REMEDIES MAY
NOT BE ASSERTED AGAINST A SUBSEQUENT HOLDER IN DUE COURSE OR A PERSON
PAYING THE INSTRUMENT IN GOOD FAITH AND WITHOUT KNOWLEDGE OF FACTS
THAT ARE A BASIS FOR RESCISSION OR OTHER REMEDY.

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