Maryland Code, COMMERCIAL LAW 15-804
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Terms Used In Maryland Code, COMMERCIAL LAW 15-804
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
(a) Notwithstanding any other provisions of this article, §§ 15-802 and 15-803 of this subtitle do not apply to any check:
(1) Tendered by a maker or drawer in complete or partial satisfaction of a preexisting credit or loan obligation incurred by the maker or drawer under Title 12 of this article; or
(2) That is not a bad check as described under § 8-103 of the Criminal Law Article.
(b) Notwithstanding any other provision of this article, §§ 15-802 and 15-803 of this subtitle shall be construed to grant any holder to whom the check or other instrument was issued or negotiated a right of recourse which is alternative to any other right of recourse granted to that holder under Title 3 of this article.