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Unformatted text preview: Part I. General Provisions and Definitions. 3-103 Definitions In this article: 1. Acceptor means a drawee who has accepted a draft 2. Consumer account means an account established by an individual primarily for personal, family, or household purposes 3. Consumer Transaction – means a transaction in which an individual incurs an obligation primarily for personal, family, or household purposes 4. Drawee – means a person ordered in a draft to make payment 5. Drawer – means a person who signs or is identified in a draft as a person ordering payment 6. Good faith – means honesty in fact and the observance of reasonable commercial standards of fair dealing 7. Maker means a person who signs or is identified in a note as a person undertaking to pay 8. Order means a written instruction to pay money signed by the person giving the instruction. The instruction may be addressed to any person, including the person giving the instruction, or to one or more persons jointly or in the alternative but not in succession. An authorization to pay is not an order unless the person authorized to pay is also instructed to pay. 9. Ordinary care – in the case of a person engaged in business means observance of reasonable commercial standards, prevailing in the area in which the person is located, with respect to the business in which the person is engaged. In the case of a bank that takes the instrument for processing for collection or payment by automated means, reasonable commercial standards do not require the bank to examine the instrument if the failure to examine does not violate the bank’s prescribed procedures and the bank’s procedures do not vary unreasonably from general banking usage not disapproved by this Article or Article 4. 10. Principal Obligor with respect to an instrument, means the accommodated party or any other party to the instrument whom a secondary obligor has recourse under this article 11. Promise means a written undertaking to pay money by the person undertaking to pay. An acknowledgment of an obligation by the obligor is not a promise unless the obligor also undertakes to pay the obligation 12. Remitter – means a person who purchases an instrument from its issuer if the instrument is payable to an identified person other than the purchaser 13. Remotely-created consumer item – means an item drawn on a consumer account, which is not created by the payor bank and does not bear a handwritten signature purporting to be the signature of the drawer 14. Secondary Obligor – with respect to an instrument means (a) an indorser or an accommodation party (b) a drawer having the obligation described in section 3-414(d) or (c) any other party to the instrument that has recourse against another party to the instrument pursuant to 3-116(b) Page 1 of 30 Part I. General Provisions and Definitions....
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- Spring '10
- Credit card, Cheque, Negotiable instrument, Cashier's check