Ch. 91                                     1996 LAWS OF MARYLAND

(C) A BANK MAY CHARGE AGAINST THE ACCOUNT OF A CUSTOMER A CHECK
THAT IS OTHERWISE PROPERLY PAYABLE FROM THE ACCOUNT, EVEN THOUGH
PAYMENT WAS MADE BEFORE THE DATE OF THE CHECK, UNLESS THE CUSTOMER
HAS GIVEN NOTICE TO THE BANK OF THE POSTDATING DESCRIBING THE CHECK
WITH REASONABLE CERTAINTY. THE NOTICE IS EFFECTIVE FOR THE PERIOD
STATED IN § 4-403(B) FOR STOP-PAYMENT ORDERS, AND MUST BE RECEIVED AT
SUCH TIME AND IN SUCH MANNER AS TO AFFORD THE BANK A REASONABLE
OPPORTUNITY TO ACT ON IT BEFORE THE BANK TAKES ANY ACTION WITH RESPECT
TO THE CHECK DESCRIBED IN § 4-303. IF A BANK CHARGES AGAINST THE ACCOUNT
OF A CUSTOMER A CHECK BEFORE THE DATE STATED IN THE NOTICE OF
POSTDATING, THE BANK IS LIABLE FOR DAMAGES FOR THE LOSS RESULTING FROM
ITS ACT. THE LOSS MAY INCLUDE DAMAGES FOR DISHONOR OF SUBSEQUENT ITEMS
UNDER § 4-402.

[(2)](D) A bank [which] THAT in good faith makes payment to a holder may
charge the indicated account of its customer according to:

[(a)](l) The original [tenor] TERMS of [his] THE altered item; or

[(b)](2) The [tenor] TERMS of [his] THE completed item, even though the
bank knows the item has been completed unless the bank has notice that the completion
was improper.

4-402.

(A)    EXCEPT AS OTHERWISE PROVIDED IN THIS TITLE, A PAYOR BANK
WRONGFULLY DISHONORS AN ITEM IF IT DISHONORS AN ITEM THAT IS PROPERLY
PAYABLE, BUT A BANK MAY DISHONOR AN ITEM THAT WOULD CREATE AN
OVERDRAFT UNLESS IT HAS AGREED TO PAY THE OVERDRAFT.

(B)     A payor bank is liable to its customer for damages proximately caused by the
wrongful dishonor of an item. [When the dishonor occurs through mistake liability]
LIABILITY is limited to actual damages proved[. If so proximately caused and proved
damages] AND may include damages for an arrest or prosecution of the customer or
other consequential damages. Whether any consequential damages are proximately
caused by the wrongful dishonor is a question of fact to be determined in each case.

(C)     A PAYOR BANK'S DETERMINATION OF THE CUSTOMER'S ACCOUNT
BALANCE ON WHICH A DECISION TO DISHONOR FOR INSUFFICIENCY OF AVAILABLE
FUNDS IS BASED MAY BE MADE AT ANY TIME BETWEEN THE TIME THE ITEM IS
RECEIVED BY THE PAYOR BANK AND THE TIME THAT THE PAYOR BANK RETURNS
THE ITEM OR GIVES NOTICE IN LIEU OF RETURN; AND NO MORE THAN ONE
DETERMINATION NEED BE MADE. IF, AT THE ELECTION OF THE PAYOR BANK, A
SUBSEQUENT BALANCE DETERMINATION IS MADE FOR THE PURPOSE OF
REEVALUATING THE BANK'S DECISION TO DISHONOR THE ITEM, THE ACCOUNT
BALANCE AT THAT TIME IS DETERMINATIVE OF WHETHER A DISHONOR FOR
INSUFFICIENCY OF AVAILABLE FUNDS IS WRONGFUL.

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