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Can you summarize MDCM Com. Law Section 4-301?
Short Summary
This section of the Code of Maryland, Commercial Law, Title 4, SubTitle 3 governs the settlement and revocation of demand items by payor banks. It outlines the actions that a payor bank can take if it settles for a demand item other than a documentary draft presented before midnight of the banking day of receipt. The payor bank has the option to revoke the settlement and recover the item by returning it or sending written notice of dishonor or nonpayment if the item is unavailable for return. Additionally, if a demand item is received by a payor bank for credit on its books, it may return the item or send notice of dishonor within the specified time limit. The section also clarifies the timing of dishonor for an item and provides guidelines for returning an item presented through a clearing house or in other cases. No specific exemptions or penalties are mentioned in this section.
Whom does it apply to?
Payor banks
What does it govern?
Settlement and revocation of demand items by payor banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Maryland