ROBERT L. EHRLICH, JR., Governor

Ch. 275

(b)     If a check or other instrument has not been paid within 30 days after the
holder has sent a notice of dishonor to the maker or drawer, the maker or drawer of a
check or other instrument that has been dishonored shall be liable for:

(1)     The amount of the check or instrument;

(2)     A collection fee of up to $35; and

(3)     An amount up to 2 times the amount of the check, but not more than
$1,000.

(c)      (1) (i) The holder of a check or other instrument that has been
dishonored may seek the damages provided under this section in [any] THE District
Court of [the State] MARYLAND 30 days after a notice of dishonor has been sent by
mail to the last known address of the maker or drawer.

(ii) For each notice sent by the holder under subparagraph (i) of
this paragraph, the holder shall:

1.       Obtain a certificate of mailing from the U.S. Postal
Service; or

2.       Execute an affidavit that attests to the mailing of the
notice in compliance with subparagraph (i) of this paragraph.

(2) A notice of dishonor sent by a holder under this section to a maker or
drawer of a dishonored check or other instrument shall substantially comply with the
form prescribed in § 15-803 of this subtitle.

(d)     A holder may not recover any damages under subsection (b)(3) of this
section if:

(1)     The holder has demanded of, and received from, the maker or
drawer:

(i) Collection costs in excess of the collection fee provided under
subsection (b)(2) of this section; or

(ii) Collection costs within 30 days after the mailing of the notice of
dishonor, under subsection (c) of this section; or

(2)     The dishonored check or other instrument provides for the payment
of collection costs in the event of dishonor.

(e)     (1) It shall be a complete defense to any action brought under this
section by any holder of a dishonored check or other instrument that, within 30 days
from the mailing of the notice of dishonor, the maker or drawer has paid to the holder
the full amount of the check or other instrument and collection costs of not more than
$35.

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