Ch. 91

1996 LAWS OF MARYLAND

(F) A CAUSE OF ACTION FOR BREACH OF WARRANTY UNDER THIS SECTION
ACCRUES WHEN THE CLAIMANT HAS REASON TO KNOW OF THE BREACH

3-418.

(A)     EXCEPT AS PROVIDED IN SUBSECTION (C), IF THE DRAWEE OF A DRAFT
PAYS OR ACCEPTS THE DRAFT AND THE DRAWEE ACTED ON THE MISTAKEN BELIEF
THAT (I) PAYMENT OF THE DRAFT HAD NOT BEEN STOPPED PURSUANT TO § 4-403 OR
(II) THE SIGNATURE OF THE DRAWER OF THE DRAFT WAS AUTHORIZED, THE
DRAWEE MAY RECOVER THE AMOUNT OF THE DRAFT FROM THE PERSON TO WHOM
OR FOR WHOSE BENEFIT PAYMENT WAS MADE OR, IN THE CASE OF ACCEPTANCE,
MAY REVOKE THE ACCEPTANCE RIGHTS OF THE DRAWEE UNDER THIS SUBSECTION
ARE NOT AFFECTED BY FAILURE OF THE DRAWEE TO EXERCISE ORDINARY CARE
IN PAYING OR ACCEPTING THE DRAFT.

(B)     EXCEPT AS PROVIDED IN SUBSECTION (C), IF AN INSTRUMENT HAS BEEN
PAID OR ACCEPTED BY MISTAKE AND THE CASE IS NOT COVERED BY SUBSECTION
(A), THE PERSON PAYING OR ACCEPTING MAY, TO THE EXTENT PERMITTED BY THE
LAW GOVERNING MISTAKE AND RESTITUTION, (I) RECOVER THE PAYMENT FROM
THE PERSON TO WHOM OR FOR WHOSE BENEFIT PAYMENT WAS MADE OR (II) IN
THE CASE OF ACCEPTANCE, MAY REVOKE THE ACCEPTANCE

(C)     THE REMEDIES PROVIDED BY SUBSECTION (A) OR (B) MAY NOT BE
ASSERTED AGAINST A PERSON WHO TOOK THE INSTRUMENT IN GOOD FAITH AND
FOR VALUE OR WHO IN GOOD FAITH CHANGED POSITION IN RELIANCE ON THE
PAYMENT OR ACCEPTANCE THIS SUBSECTION DOES NOT LIMIT REMEDIES
PROVIDED BY § 3-417 OR § 4-407.

(D)     NOTWITHSTANDING § 4-215, IF AN INSTRUMENT IS PAID OR ACCEPTED BY
MISTAKE AND THE PAYOR OR ACCEPTOR RECOVERS PAYMENT OR REVOKES
ACCEPTANCE UNDER SUBSECTION (A) OR (B), THE INSTRUMENT IS DEEMED NOT TO
HAVE BEEN PAID OR ACCEPTED AND IS TREATED AS DISHONORED, AND THE
PERSON FROM WHOM PAYMENT IS RECOVERED HAS RIGHTS AS A PERSON
ENTITLED TO ENFORCE THE DISHONORED INSTRUMENT.

3-419.

(A)     IF AN INSTRUMENT IS ISSUED FOR VALUE GIVEN FOR THE BENEFIT OF A
PARTY TO THE INSTRUMENT ("ACCOMMODATED PARTY') AND ANOTHER PARTY TO
THE INSTRUMENT ("ACCOMMODATION PARTY') SIGNS THE INSTRUMENT FOR THE
PURPOSE OF INCURRING LIABILITY ON THE INSTRUMENT WITHOUT BEING A
DIRECT BENEFICIARY OF THE VALUE GIVEN FOR THE INSTRUMENT, THE
INSTRUMENT IS SIGNED BY THE ACCOMMODATION PARTY "FOR
ACCOMMODATION".

(B)     AN ACCOMMODATION PARTY MAY SIGN THE INSTRUMENT AS MAKER,
DRAWER, ACCEPTOR, OR INDORSER AND, SUBJECT TO SUBSECTION (D), IS OBLIGED
TO PAY THE INSTRUMENT IN THE CAPACITY IN WHICH THE ACCOMMODATION
PARTY SIGNS. THE OBLIGATION OF AN ACCOMMODATION PARTY MAY BE

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