Ch. 91                                     1996 LAWS OF MARYLAND

(C) A REPRESENTATIVE, OTHER THAN A DEPOSITARY BANK, WHO HAS IN
GOOD FAITH DEALT WITH AN INSTRUMENT OR ITS PROCEEDS ON BEHALF OF ONE
WHO WAS NOT THE PERSON ENTITLED TO ENFORCE THE INSTRUMENT IS NOT
LIABLE IN CONVERSION TO THAT PERSON BEYOND THE AMOUNT OF ANY PROCEEDS
THAT IT HAS NOT PAID OUT.

SUBTITLE 5. DISHONOR.
3-501.

(A)    "PRESENTMENT" MEANS A DEMAND MADE BY OR ON BEHALF OF A
PERSON ENTITLED TO ENFORCE AN INSTRUMENT (I) TO PAY THE INSTRUMENT
MADE TO THE DRAWEE OR A PARTY OBLIGED TO PAY THE INSTRUMENT OR, IN THE
CASE OF A NOTE OR ACCEPTED DRAFT PAYABLE AT A BANK, TO THE BANK, OR (II)
TO ACCEPT A DRAFT MADE TO THE DRAWEE

(B)     THE FOLLOWING RULES ARE SUBJECT TO TITLE 4, AGREEMENT OF THE
PARTIES, AND CLEARING-HOUSE RULES AND THE LIKE:

(1)     PRESENTMENT MAY BE MADE AT THE PLACE OF PAYMENT OF THE
INSTRUMENT AND MUST BE MADE AT THE PLACE OF PAYMENT IF THE INSTRUMENT
IS PAYABLE AT A BANK IN THE UNITED STATES; MAY BE MADE BY ANY
COMMERCIALLY REASONABLE MEANS, INCLUDING AN ORAL, WRITTEN, OR
ELECTRONIC COMMUNICATION; IS EFFECTIVE WHEN THE DEMAND FOR PAYMENT
OR ACCEPTANCE IS RECEIVED BY THE PERSON TO WHOM PRESENTMENT IS MADE;
AND IS EFFECTIVE IF MADE TO ANY ONE OF TWO OR MORE MAKERS, ACCEPTORS,
DRAWEES, OR OTHER PAYORS.

(2)     UPON DEMAND OF THE PERSON TO WHOM PRESENTMENT IS MADE,
THE PERSON MAKING PRESENTMENT MUST (I) EXHIBIT THE INSTRUMENT, (II) GIVE
REASONABLE IDENTIFICATION AND, IF PRESENTMENT IS MADE ON BEHALF OF
ANOTHER PERSON, REASONABLE EVIDENCE OF AUTHORITY TO DO SO, AND (III)
SIGN A RECEIPT ON THE INSTRUMENT FOR ANY PAYMENT MADE OR SURRENDER
THE INSTRUMENT IF FULL PAYMENT IS MADE

(3)     WITHOUT DISHONORING THE INSTRUMENT, THE PARTY TO WHOM
PRESENTMENT IS MADE MAY (I) RETURN THE INSTRUMENT FOR LACK OF A
NECESSARY INDORSEMENT, OR (II) REFUSE PAYMENT OR ACCEPTANCE FOR
FAILURE OF THE PRESENTMENT TO COMPLY WITH THE TERMS OF THE
INSTRUMENT, AN AGREEMENT OF THE PARTIES, OR OTHER APPLICABLE LAW OR
RULE

(4)     THE PARTY TO WHOM PRESENTMENT IS MADE MAY TREAT
PRESENTMENT AS OCCURRING ON THE NEXT BUSINESS DAY AFTER THE DAY OF
PRESENTMENT IF THE PARTY TO WHOM PRESENTMENT IS MADE HAS ESTABLISHED
A CUT-OFF HOUR NOT EARLIER THAN 2 P.M FOR THE RECEIPT AND PROCESSING OF
INSTRUMENTS PRESENTED FOR PAYMENT OR ACCEPTANCE AND PRESENTMENT IS
MADE AFTER THE CUT-OFF HOUR.

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