Ch. 91

1996 LAWS OF MARYLAND

(1)     IN THE CASE OF AN UNCERTIFIED CHECK, SUSPENSION OF THE
OBLIGATION CONTINUES UNTIL DISHONOR OF THE CHECK OR UNTIL IT IS PAID OR
CERTIFIED. PAYMENT OR CERTIFICATION OF THE CHECK RESULTS IN DISCHARGE
OF THE OBLIGATION TO THE EXTENT OF THE AMOUNT OF THE CHECK

(2)     IN THE CASE OF A NOTE, SUSPENSION OF THE OBLIGATION
CONTINUES UNTIL DISHONOR OF THE NOTE OR UNTIL IT IS PAID. PAYMENT OF THE
NOTE RESULTS IN DISCHARGE OF THE OBLIGATION TO THE EXTENT OF THE
PAYMENT.

(3)     EXCEPT AS PROVIDED IN PARAGRAPH (4), IF THE CHECK OR NOTE IS
DISHONORED AND THE OBLIGEE OF THE OBLIGATION FOR WHICH THE
INSTRUMENT WAS TAKEN IS THE PERSON ENTITLED TO ENFORCE THE INSTRUMENT,
THE OBLIGEE MAY ENFORCE EITHER THE INSTRUMENT OR THE OBLIGATION. IN
THE CASE OF AN INSTRUMENT OF A THIRD PERSON WHICH IS NEGOTIATED TO THE
OBLIGEE BY THE OBLIGOR, DISCHARGE OF THE OBLIGOR ON THE INSTRUMENT
ALSO DISCHARGES THE OBLIGATION.

(4)     IF THE PERSON ENTITLED TO ENFORCE THE INSTRUMENT TAKEN
FOR AN OBLIGATION IS A PERSON OTHER THAN THE OBLIGEE, THE OBLIGEE MAY
NOT ENFORCE THE OBLIGATION TO THE EXTENT THE OBLIGATION IS SUSPENDED.
IF THE OBLIGEE IS THE PERSON ENTITLED TO ENFORCE THE INSTRUMENT BUT NO
LONGER HAS POSSESSION OF IT BECAUSE IT WAS LOST, STOLEN, OR DESTROYED.
THE OBLIGATION MAY NOT BE ENFORCED TO THE EXTENT OF THE AMOUNT
PAYABLE ON THE INSTRUMENT, AND TO THAT EXTENT THE OBLIGEE'S RIGHTS
AGAINST THE OBLIGOR ARE LIMITED TO ENFORCEMENT OF THE INSTRUMENT.

(C) IF AN INSTRUMENT OTHER THAN ONE DESCRIBED IN SUBSECTION (A) OR
(B) IS TAKEN FOR AN OBLIGATION, THE EFFECT IS (I) THAT STATED IN SUBSECTION
(A) IF THE INSTRUMENT IS ONE ON WHICH A BANK IS LIABLE AS MAKER OR
ACCEPTOR, OR (II) THAT STATED IN SUBSECTION (B) IN ANY OTHER CASE

3-311.

(A)    IF A PERSON AGAINST WHOM A CLAIM IS ASSERTED PROVES THAT (I)
THAT PERSON IN GOOD FAITH TENDERED AN INSTRUMENT TO THE CLAIMANT AS
FULL SATISFACTION OF THE CLAIM, (II) THE AMOUNT OF THE CLAIM WAS
UNLIQUIDATED OR SUBJECT TO A BONA FIDE DISPUTE, AND (III) THE CLAIMANT
OBTAINED PAYMENT OF THE INSTRUMENT, THE FOLLOWING SUBSECTIONS APPLY.

(B)     UNLESS SUBSECTION (C) APPLIES, THE CLAIM IS DISCHARGED IF THE
PERSON AGAINST WHOM THE CLAIM IS ASSERTED PROVES THAT THE INSTRUMENT
OR AN ACCOMPANYING WRITTEN COMMUNICATION CONTAINED A CONSPICUOUS
STATEMENT TO THE EFFECT THAT THE INSTRUMENT WAS TENDERED AS FULL
SATISFACTION OF THE CLAIM.

(C)     SUBJECT TO SUBSECTION (D), A CLAIM IS NOT DISCHARGED UNDER
SUBSECTION (B) IF EITHER OF THE FOLLOWING APPLIES:

(1) THE CLAIMANT, IF AN ORGANIZATION, PROVES THAT (I) WITHIN A
REASONABLE TIME BEFORE THE TENDER, THE CLAIMANT SENT A CONSPICUOUS

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