Ch. 91

1996 LAWS OF MARYLAND

(D)     DISHONOR OF AN ACCEPTED DRAFT IS GOVERNED BY THE FOLLOWING
RULES:

(1)      IF THE DRAFT IS PAYABLE ON DEMAND, THE DRAFT IS
DISHONORED IF PRESENTMENT FOR PAYMENT IS DULY MADE TO THE ACCEPTOR
AND THE DRAFT IS NOT PAID ON THE DAY OF PRESENTMENT.

(2)      IF THE DRAFT IS NOT PAYABLE ON DEMAND, THE DRAFT IS
DISHONORED IF PRESENTMENT FOR PAYMENT IS DULY MADE TO THE ACCEPTOR
AND PAYMENT IS NOT MADE ON THE DAY IT BECOMES PAYABLE OR THE DAY OF
PRESENTMENT, WHICHEVER IS LATER.

(E)     IN ANY CASE IN WHICH PRESENTMENT IS OTHERWISE REQUIRED FOR
DISHONOR UNDER THIS SECTION AND PRESENTMENT IS EXCUSED UNDER § 3-504,
DISHONOR OCCURS WITHOUT PRESENTMENT IF THE INSTRUMENT IS NOT DULY
ACCEPTED OR PAID.

(F)      IF A DRAFT IS DISHONORED BECAUSE TIMELY ACCEPTANCE OF THE
DRAFT WAS NOT MADE AND THE PERSON ENTITLED TO DEMAND ACCEPTANCE
CONSENTS TO A LATE ACCEPTANCE, FROM THE TIME OF ACCEPTANCE THE DRAFT IS
TREATED AS NEVER HAVING BEEN DISHONORED.

3-503.

(A)     THE OBLIGATION OF AN INDORSER STATED IN § 3-415(A) AND THE
OBLIGATION OF A DRAWER STATED IN § 3-414(D) MAY NOT BE ENFORCED UNLESS (I)
THE INDORSER OR DRAWER IS GIVEN NOTICE OF DISHONOR OF THE INSTRUMENT
COMPLYING WITH THIS SECTION OR (II) NOTICE OF DISHONOR IS EXCUSED UNDER §
3-504(B).

(B)     NOTICE OF DISHONOR MAY BE GIVEN BY ANY PERSON; MAY BE GIVEN BY
ANY COMMERCIALLY REASONABLE MEANS, INCLUDING AN ORAL, WRITTEN, OR
ELECTRONIC COMMUNICATION; AND IS SUFFICIENT IF IT REASONABLY IDENTIFIES
THE INSTRUMENT AND INDICATES THAT THE INSTRUMENT HAS BEEN DISHONORED
OR HAS NOT BEEN PAID OR ACCEPTED. RETURN OF AN INSTRUMENT GIVEN TO A
BANK FOR COLLECTION IS SUFFICIENT NOTICE OF DISHONOR.

(C)     SUBJECT TO § 3-504(C), WITH RESPECT TO AN INSTRUMENT TAKEN FOR
COLLECTION BY A COLLECTING BANK, NOTICE OF DISHONOR MUST BE GIVEN (I) BY
THE BANK BEFORE MIDNIGHT OF THE NEXT BANKING DAY FOLLOWING THE
BANKING DAY ON WHICH THE BANK RECEIVES NOTICE OF DISHONOR OF THE
INSTRUMENT, OR (II) BY ANY OTHER PERSON WITHIN 30 DAYS FOLLOWING THE DAY
ON WHICH THE PERSON RECEIVES NOTICE OF DISHONOR. WITH RESPECT TO ANY
OTHER INSTRUMENT, NOTICE OF DISHONOR MUST BE GIVEN WITHIN 30 DAYS
FOLLOWING THE DAY ON WHICH DISHONOR OCCURS.

3-504.

(A) PRESENTMENT FOR PAYMENT OR ACCEPTANCE OF AN INSTRUMENT IS
EXCUSED IF (I) THE PERSON ENTITLED TO PRESENT THE INSTRUMENT CANNOT
WITH REASONABLE DILIGENCE MAKE PRESENTMENT, (II) THE MAKER OR
ACCEPTOR HAS REPUDIATED AN OBLIGATION TO PAY THE INSTRUMENT OR IS

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