Ch. 91

1996 LAWS OF MARYLAND

[(a)](1) [Any] AN item [direct] DIRECTLY to the payor bank;

[(b)](2) [Any] AN item to [any] A nonbank payor if authorized by its
transferor; and

[ (c)] (3) [Any] AN item other than documentary drafts to any nonbank
payor, if authorized by federal reserve regulation or operating [letter] CIRCULAR,
[ clearing house] CLEARING-HOUSE rule, or the like.

[(3)] (C) Presentment may be made by a presenting bank at a place where the
payor bank OR OTHER PAYOR has requested that presentment be made.

[4-205.

(1) A depositary bank which has taken an item for collection may supply any
indorsement of the customer which is necessary to title unless the item contains the words
"payee's indorsement required" or the like. In the absence of such a requirement a
statement placed on the item by the depositary bank to the effect that the item was
deposited by a customer or credited to his account is effective as the customer's
indorsement.

(2) An intermediary bank, or payor bank which is not a depositary bank, is neither
given notice nor otherwise affected by a restrictive indorsement of any person except the
bank's immediate transferor.]

4-205.

IF A CUSTOMER DELIVERS AN ITEM TO A DEPOSITARY BANK FOR COLLECTION:

(1)     THE DEPOSITARY BANK BECOMES A HOLDER OF THE ITEM AT THE
TIME IT RECEIVES THE ITEM FOR COLLECTION IF THE CUSTOMER AT THE TIME OF
DELIVERY WAS A HOLDER OF THE ITEM, WHETHER OR NOT THE CUSTOMER
INDORSES THE ITEM, AND, IF THE BANK SATISFIES THE OTHER REQUIREMENTS OF §
3-302, IT IS A HOLDER IN DUE COURSE; AND

(2)     THE DEPOSITARY BANK WARRANTS TO COLLECTING BANKS, THE
PAYOR BANK OR OTHER PAYOR, AND THE DRAWER THAT THE AMOUNT OF THE
ITEM WAS PAID TO THE CUSTOMER OR DEPOSITED TO THE CUSTOMER'S ACCOUNT.

4-206.

Any agreed method [which] THAT identifies the transferor bank is sufficient for
the item's further transfer to another bank.

[4-207.

(1) Each customer or collecting bank who obtains payment or acceptance of an
item and each prior customer and collecting bank warrants to the payor bank or other
payor who in good faith pays or accepts the item that

(a) He has a good title to the item or is authorized to obtain payment or
acceptance on behalf of one who has a good title; and

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