Ch. 91                                      1996 LAWS OF MARYLAND

for the item, it must reimburse the bank drawing the draft and any provisional credits for
the item between banks shall become and remain final.]

(B) A COLLECTING BANK RETURNS AN ITEM WHEN IT IS SENT OR DELIVERED
TO THE BANK'S CUSTOMER OR TRANSFEROR OR PURSUANT TO ITS INSTRUCTIONS.

[ (3)] (C) A depositary bank [which] THAT is also the payor may charge-back the
amount of an item to its customer's account or obtain refund in accordance with the
section governing return of an item received by a payor bank for credit on its books (§
4-301).

[ (4)] (D) The right to charge-back is not affected by:

[ (a)] (1) Prior use of the credit given for the item; or

[(b)] (2) Failure by any bank to exercise ordinary care with respect to the
item, but [any] A bank so failing remains liable.

[(5)] (E) A failure to charge-back or claim refund does not affect other rights of
the bank against the customer or any other party.

[(6)] (F) If credit is given in dollars as the equivalent of the value of an item
payable in [a] foreign [currency] MONEY, the dollar amount of any charge-back or
refund [shall] MUST be calculated on the basis of the [buying sight] BANK-OFFERED
SPOT rate for the foreign [currency] MONEY prevailing on the day when the person
entitled to the charge-back or refund learns that it will not receive payment in ordinary
course.

[4-213.] 4-215.

[(1)] (A) An item is finally paid by a payor bank when the bank has done any of
the following[, whichever happens first]:

[(a)](l) Paid the item in cash; [or]

[(b)] (2) Settled for the item without [ reserving] HAVING a right to revoke
the settlement [and without having such right] under statute, [clearing house]
CLEARING-HOUSE rule, or agreement; or

[(c) Completed the process of posting the item to the indicated account of
the drawer, maker or other person to be charged therewith; or]

[(d)] (3) Made a provisional settlement for the item and failed to revoke the
settlement in the time and manner permitted by. statute, [clearing house]
CLEARING-HOUSE rule, or agreement. [ Upon a final payment under subparagraphs (b),
(c) or (d) the payor bank shall be accountable for the amount of the item.]

(B) IF PROVISIONAL SETTLEMENT FOR AN ITEM DOES NOT BECOME FINAL,
THE ITEM IS NOT FINALLY PAID.

[(2)] (C) If provisional settlement for an item between the presenting and payor
banks is made through a clearing house or by debits or credits in an account between
them, then to the extent that provisional debits or credits for the item are entered in

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