Ch. 363

2003 LAWS OF MARYLAND

check facsimiles under certain circumstances; defining certain terms; making
stylistic changes; providing for a delayed effective date; and generally relating to
truncated accounts offered by banking institutions to their customers.

BY repealing and reenacting, with amendments,
Article - Financial Institutions
Section 5-513

Annotated Code of Maryland
(1998 Replacement Volume and 2002 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Financial Institutions

5-513.

[(a) A banking institution offering truncated checking accounts shall also offer
customers a checking account plan that provides for the return of canceled checks on
a monthly basis.

(b) When a customer opens a truncated checking account, the banking
institution shall inform the customer of the length of time the banking institution
intends to keep the original canceled checks.]

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2)      "CHECK" MEANS A DRAFT THAT IS DRAWN ON A BANKING
INSTITUTION AND PAYABLE ON DEMAND.

(3)      "CHECK FACSIMILE" MEANS A COPY OF AN ORIGINAL CHECK
REPRODUCED THROUGH PHOTOGRAPHIC, PHOTOSTATIC, MICROFILM, MICROCARD,
MINIATURE PHOTOGRAPHIC, OPTICAL IMAGING, ELECTRONIC, DIGITAL, MAGNETIC,
WIRELESS, ELECTROMAGNETIC, OR OTHER PROCESS THAT ACCURATELY
REPRODUCES OR FORMS A DURABLE MEDIUM FOR REPRODUCING THE ORIGINAL
CHECK.

(4)      "DRAFT" HAS THE MEANING STATED IN § 3-104 OF THE COMMERCIAL
LAW ARTICLE.

(5)      "TRUNCATED ACCOUNT" MEANS A CHECKING, NEGOTIABLE ORDER
OF WITHDRAWAL, OR SIMILAR DEPOSIT ACCOUNT FOR WHICH THE ORIGINAL
CHECKS DRAWN ON THE ACCOUNT ARE NOT RETURNED TO THE CUSTOMER ON A
REGULAR BASIS.

[(c)] (B) (1) (I) [When a customer elects not to receive canceled checks on a
regular basis, the banking institution shall, upon the customer's request,] ON
WRITTEN REQUEST OF A CUSTOMER WITH A TRUNCATED ACCOUNT, A BANKING
INSTITUTION SHALL return any check [or check facsimile] the customer requires for
tax audits or litigation OR IN CONNECTION WITH CAMPAIGN FINANCE REPORTING
REQUIREMENTS UNDER THE ELECTION LAW ARTICLE, at no cost to the customer.

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