Ch. 91                                     1996 LAWS OF MARYLAND

(c)     Affixing a "paid" or other stamp;

(d)     Entering a charge or entry to a customer's account;

(e)     Correcting or reversing an entry or erroneous action with respect to the item.]
4-110.

(A)    "AGREEMENT FOR ELECTRONIC PRESENTMENT" MEANS AN AGREEMENT,
CLEARING-HOUSE RULE, OR FEDERAL RESERVE REGULATION OR OPERATING
CIRCULAR, PROVIDING THAT PRESENTMENT OF AN ITEM MAY BE MADE BY
TRANSMISSION OF AN IMAGE OF AN ITEM OR INFORMATION DESCRIBING THE ITEM
("PRESENTMENT NOTICE") RATHER THAN DELIVERY OF THE ITEM ITSELF. THE
AGREEMENT MAY PROVIDE FOR PROCEDURES GOVERNING RETENTION,
PRESENTMENT, PAYMENT, DISHONOR, AND OTHER MATTERS CONCERNING ITEMS
SUBJECT TO THE AGREEMENT.

(B)     PRESENTMENT OF AN ITEM PURSUANT TO AN AGREEMENT FOR
PRESENTMENT IS MADE WHEN THE PRESENTMENT NOTICE IS RECEIVED.

(C) IF PRESENTMENT IS MADE BY PRESENTMENT NOTICE, A REFERENCE TO
"ITEM" OR "CHECK" IN THIS TITLE MEANS THE PRESENTMENT NOTICE UNLESS THE
CONTEXT OTHERWISE INDICATES.

4-111.

AN ACTION TO ENFORCE AN OBLIGATION, DUTY, OR RIGHT ARISING UNDER
THIS TITLE MUST BE COMMENCED WITHIN 3 YEARS AFTER THE CAUSE OF ACTION
ACCRUES. .

4-201.

[(1)](A) Unless a contrary intent clearly appears and [prior to] BEFORE the
time that a settlement given by a collecting bank for an item is or becomes final,
[ (subsection (3) of § 4-211 and §§ 4-212 and 4-213)] the bank, WITH RESPECT TO THE
ITEM, is an agent or subagent of the owner of the item and any settlement given for the
item is provisional. This provision applies regardless of the form of indorsement or lack of
indorsement and even though credit given for the item is subject to immediate withdrawal
as of right or is in fact withdrawn; but the continuance of ownership of an item by its
owner and any rights of the owner to proceeds of the item are subject to rights of a
collecting bank, such as those resulting from outstanding advances on the item and
[valid] rights of RECOUPMENT OR setoff. [When] IF an item is handled by banks for
purposes of presentment, payment [and], collection, OR RETURN, the relevant
provisions of this title apply even though action of THE parties clearly establishes that a
particular bank has purchased the item and is the owner of it.

[(2)] (B) After an item has been indorsed with the words "pay any bank" or the
like, only a bank may acquire the rights of a holder UNTIL THE ITEM HAS BEEN:

[(a)](1) [Until the item has been returned] RETURNED to the customer
initiating collection; or

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