Ch. 91

1996 LAWS OF MARYLAND

RECOVER FROM ANY WARRANTOR FOR BREACH OF WARRANTY AN AMOUNT
EQUAL TO THE AMOUNT PAID PLUS EXPENSES AND LOSS OF INTEREST RESULTING
FROM THE BREACH.

(E)     THE WARRANTIES STATED IN SUBSECTIONS (A) AND (D) CANNOT BE
DISCLAIMED WITH RESPECT TO CHECKS. UNLESS NOTICE OF A CLAIM FOR BREACH
OF WARRANTY IS GIVEN TO THE WARRANTOR WITHIN 30 DAYS AFTER THE
CLAIMANT HAS REASON TO KNOW OF THE BREACH AND THE IDENTITY OF THE
WARRANTOR, THE WARRANTOR IS DISCHARGED TO THE EXTENT OF ANY LOSS
CAUSED BY THE DELAY IN GIVING NOTICE OF THE CLAIM.

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

4-209.

(A)    A PERSON WHO ENCODES INFORMATION ON OR WITH RESPECT TO AN
ITEM AFTER ISSUE WARRANTS TO ANY SUBSEQUENT COLLECTING BANK AND TO
THE PAYOR BANK OR OTHER PAYOR THAT THE INFORMATION IS CORRECTLY
ENCODED. IF THE CUSTOMER OF A DEPOSITARY BANK ENCODES, THAT BANK ALSO
MAKES THE WARRANTY.

(B)     A PERSON WHO UNDERTAKES TO RETAIN AN ITEM PURSUANT TO AN
AGREEMENT FOR ELECTRONIC PRESENTMENT WARRANTS TO ANY SUBSEQUENT
COLLECTING BANK AND TO THE PAYOR BANK OR OTHER PAYOR THAT RETENTION
AND PRESENTMENT OF THE ITEM COMPLY WITH THE AGREEMENT. IF A CUSTOMER
OF A DEPOSITARY BANK UNDERTAKES TO RETAIN AN ITEM, THAT BANK ALSO
MAKES THIS WARRANTY.

(C)     A PERSON TO WHOM WARRANTIES ARE MADE UNDER THIS SECTION AND
WHO TOOK THE ITEM IN GOOD FAITH MAY RECOVER FROM THE WARRANTOR AS
DAMAGES FOR BREACH OF WARRANTY AN AMOUNT EQUAL TO THE LOSS
SUFFERED AS A RESULT OF THE BREACH, PLUS EXPENSES AND LOSS OF INTEREST
INCURRED AS A RESULT OF THE BREACH.

[4-208.] 4-210.

[(1)](A) A COLLECTING bank has a security interest in an item and any
accompanying documents or the proceeds of either:

[ (a)] (1) In case of an item deposited in an account, to the extent to which
credit given for the item has been withdrawn or applied;

[(b)] (2) In case of an item for which it has given credit available for
withdrawal as of right, to the extent of the credit given, whether or not the credit is drawn
upon [ and whether] or [ not] there is a right of charge-back; or

[ (c)] (3) If it makes an advance on or against the item.

[(2)](B) [When] IF credit [which has been] given for several items received at
one time or pursuant to a single agreement is withdrawn or applied in part, the security
interest remains upon all the items, any accompanying documents or the proceeds of
either. For the purpose of this section, credits first given are first withdrawn.

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