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Can you summarize MDCM Com. Law Section 4-406?
Short Summary
This legal document, found in the Code of Maryland under Commercial Law, Title 4, SubTitle 4, governs the obligations and rights related to bank statements and payment of items. It applies to banks and their customers. According to the document, when a bank sends or makes available a statement of account to a customer, it must either return the items paid, provide sufficient information in the statement to identify the items paid, or retain the items or legible copies of the items if they are not returned. The customer has the right to request an item from the bank and the bank must provide it within a reasonable time. The document also outlines the customer’s duty to promptly examine the statement or items and notify the bank of any unauthorized payments. Failure to comply with these duties may preclude the customer from asserting certain claims against the bank. The document does not mention specific penalties or exemptions.
Whom does it apply to?
Banks and their customers
What does it govern?
Bank statements and payment of items
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Maryland