Do any of you who work for Maryland institutions disclose how you post checks in your deposit account agreement? For example, if post checks in order of highest dollar amount first, or if you post electronic items before you post paper items, do you disclose that?
When I look at the case law from other jurisdictions on this subject, it appears that banks that disclosed had the most protection under the law. However, our General Counsel feels that the law in Maryland is clear and stands on its own, and that by posting the payment order we just open ourselves up to a wrongful dishonor lawsuit if something inadvertantly gets paid in the wrong order.
So, I was wondering how some other banks in Maryland handle this issue.
Thanks,
BC

We have a "Payment Order of Items" section of our account agreement that reads (in part) "we do not pay items in any specific order because we feel there is no policy that is favorable in every instance".

It goes on to explain that paying many small items may result in less fees, but more important large dollar amount items such as mortgage payments may go unpaid due to uncollected/insufficient funds.

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