PARRIS N. GLENDENING, Governor

Ch. 91

[(3)](C) Receipt by a collecting bank of a final settlement for an item is a
realization on its security interest in the item, accompanying documents and proceeds.
[ To the extent and so] SO long as the bank does not receive final settlement for the item
or give up possession of the item or accompanying documents for purposes other than
collection, the security interest continues TO THAT EXTENT and is subject to [the
provisions of] Title 9, [ except that] BUT:

[ (a)] (1) No security agreement is necessary to make the security interest
enforceable ([subsection (1) (a) of § 9-203] § 9-203(l)(A)); [and]

[ (b)] (2) No filing is required to perfect the security interest; and

[ (c)] (3) The security interest has priority over conflicting perfected security
interests in the item, accompanying [ documents] DOCUMENTS, or proceeds.

[4-209.] 4-211.

For purposes of determining its status as a holder in due course, [the] A bank has
given value to the extent that it has a security interest in an item, [ provided that] IF the
bank otherwise complies with the requirements of § 3-302 on what constitutes a holder in
due course.

[4-210.] 4-212.

[(1)] (A) Unless otherwise instructed, a collecting bank may present an item not
payable by, through, or at a bank by sending to the party to accept or pay a written notice
that the bank holds the item for acceptance or payment. The notice must be sent in time
to be received on or before the day when presentment is due and the bank must meet any
requirement of the party to accept or pay under [§ 3-505] § 3-501 by the close of the
bank's next banking day after it knows of the requirement.

[(2)] (B) [ Where] IF presentment is made by notice and [neither honor nor]
PAYMENT, ACCEPTANCE, OR request for compliance with a requirement under [§
3-505] § 3-501 is NOT received by the close of business on the day after maturity or, in the
case of demand items, by the close of business on the third banking day after notice was
sent, the presenting bank may treat the item as dishonored and charge any [ secondary
party] DRAWER OR INDORSER by sending [him] IT notice of the facts.

[4-211.

(1) A collecting bank may take in settlement of an item

(a)     A check of the remitting bank or of another bank on any bank except the
remitting bank; or

(b)     A cashier's check or similar primary obligation of a remitting bank which
is a member of or clears through a member of the same clearing house or group as the
collecting bank; or

(c)     Appropriate authority to charge an account of the remitting bank or of
another bank with the collecting bank; or

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