Ch. 91

1996 LAWS OF MARYLAND

THE REMITTER OR PAYEE OF A CASHIER'S CHECK OR TELLER'S CHECK, (II) THE
COMMUNICATION CONTAINS OR IS ACCOMPANIED BY A DECLARATION OF LOSS OF
THE CLAIMANT WITH RESPECT TO THE CHECK, (III) THE COMMUNICATION IS
RECEIVED AT A TIME AND IN A MANNER AFFORDING THE BANK A REASONABLE
TIME TO ACT ON IT BEFORE THE CHECK IS PAID, AND (IV) THE CLAIMANT PROVIDES
REASONABLE IDENTIFICATION IF REQUESTED BY THE OBLIGATED BANK DELIVERY
OF A DECLARATION OF LOSS IS A WARRANTY OF THE TRUTH OF THE STATEMENTS
MADE IN THE DECLARATION. IF A CLAIM IS ASSERTED IN COMPLIANCE WITH THIS
SUBSECTION, THE FOLLOWING RULES APPLY:

(1)     THE CLAIM BECOMES ENFORCEABLE AT THE LATER OF (I) THE TIME
THE CLAIM IS ASSERTED, OR (II) THE 90TH DAY FOLLOWING THE DATE OF THE
CHECK, IN THE CASE OF A CASHIER'S CHECK OR TELLER'S CHECK, OR THE 90TH DAY
FOLLOWING THE DATE OF THE ACCEPTANCE, IN THE CASE OF A CERTIFIED CHECK

(2)     UNTIL THE CLAIM BECOMES ENFORCEABLE, IT HAS NO LEGAL
EFFECT AND THE OBLIGATED BANK MAY PAY THE CHECK OR, IN THE CASE OF A
TELLER'S CHECK, MAY PERMIT THE DRAWEE TO PAY THE CHECK. PAYMENT TO A
PERSON ENTITLED TO ENFORCE THE CHECK DISCHARGES ALL LIABILITY OF THE
OBLIGATED BANK WITH RESPECT TO THE CHECK

(3)     IF THE CLAIM BECOMES ENFORCEABLE BEFORE THE CHECK IS
PRESENTED FOR PAYMENT, THE OBLIGATED BANK IS NOT OBLIGED TO PAY THE
CHECK

(4)     WHEN THE CLAIM BECOMES ENFORCEABLE, THE OBLIGATED BANK
BECOMES OBLIGED TO PAY THE AMOUNT OF THE CHECK TO THE CLAIMANT IF
PAYMENT OF THE CHECK HAS NOT BEEN MADE TO A PERSON ENTITLED TO
ENFORCE THE CHECK SUBJECT TO § 4-302(A)(1), PAYMENT TO THE CLAIMANT
DISCHARGES ALL LIABILITY OF THE OBLIGATED BANK WITH RESPECT TO THE
CHECK

(C)     IF THE OBLIGATED BANK PAYS THE AMOUNT OF A CHECK TO A
CLAIMANT UNDER SUBSECTION (B)(4) AND THE CHECK IS PRESENTED FOR PAYMENT
BY A PERSON HAVING RIGHTS OF A HOLDER IN DUE COURSE, THE CLAIMANT IS
OBLIGED TO (I) REFUND THE PAYMENT TO THE OBLIGATED BANK IF THE CHECK IS
PAID, OR (II) PAY THE AMOUNT OF THE CHECK TO THE PERSON HAVING RIGHTS OF
A HOLDER IN DUE COURSE IF THE CHECK IS DISHONORED.

(D)    IF A CLAIMANT HAS THE RIGHT TO ASSERT A CLAIM UNDER SUBSECTION
(B) AND IS ALSO A PERSON ENTITLED TO ENFORCE A CASHIER'S CHECK TELLER'S
CHECK OR CERTIFIED CHECK WHICH IS LOST, DESTROYED, OR STOLEN, THE
CLAIMANT MAY ASSERT RIGHTS WITH RESPECT TO THE CHECK EITHER UNDER THIS
SECTION OR § 3-309.

SUBTITLE 4. LIABILITY OF PARTIES.
3-401.

(A) A PERSON IS NOT LIABLE ON AN INSTRUMENT UNLESS (I) THE PERSON
SIGNED THE INSTRUMENT, OR (II) THE PERSON IS REPRESENTED BY AN AGENT OR

- 1250 -