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§ 3-604. Draft requirements

West's Annotated Code of MarylandFinancial Institutions

West's Annotated Code of Maryland
Financial Institutions
Title 3. Banking Institutions--Commercial Banks
Subtitle 6. Miscellaneous Regulations (Refs & Annos)
MD Code, Financial Institutions, § 3-604
§ 3-604. Draft requirements
Currentness
Payments made at later date
(a) A commercial bank may accept for payment at a later date a draft issued in connection with a transaction that involves the importation, exportation, or domestic shipment of goods, if the draft:
(1) Is payable not more than 6 months after the date of acceptance; and
(2) When accepted, is accompanied by a document of title.
Banks or bankers in foreign countries or possessions or territories of United States
(b) A commercial bank may accept a draft that a bank or banker in any foreign country or any possession or territory of the United States draws on the commercial bank to provide dollar exchange required by trade usage in the foreign country, possession, or territory if:
(1) The draft is payable not more than 3 months after the date of acceptance;
(2) The amount of the exchange does not exceed 50 percent of the unimpaired capital and surplus of the commercial bank; and
(3) For any exchange that exceeds 10 percent of the unimpaired capital and surplus of the commercial bank, the draft is accompanied by a document of title or other adequate security.

Credits

Added by Acts 1980, c. 33, § 2, eff. July 1, 1980.
Formerly Art. 11, §§ 31, 57.
MD Code, Financial Institutions, § 3-604, MD FIN INST § 3-604
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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