Other definitions

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  • (a) In this Article:

    • (1) “Authorized account” means a deposit account of a customer in a bank designated by the customer as a source of payment of payment orders issued by the customer to the bank. If a customer does not so designate an account, any account of the customer is an authorized account if payment of a payment order from that account is not inconsistent with a restriction on the use of that account.

    • (2) “Bank” means a person engaged in the business of banking and includes a savings bank, savings and loan association, credit union, and trust company. A branch or separate office of a bank is a separate bank for purposes of this Article.

    • (3) “Customer” means a person, including a bank, having an account with a bank or from whom a bank has agreed to receive payment orders.

    • (4) “Funds-transfer business day” of a receiving bank means the part of a day during which the receiving bank is open for the receipt, processing, and transmittal of payment orders and cancellations and amendments of payment orders.

    • (5) “Funds-transfer system” means a wire transfer network, automated clearing house, or other communication system of a clearing house or other association of banks through which a payment order by a bank may be transmitted to the bank to which the order is addressed.

    • (6) “Good faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing.

    • (7) “Prove” with respect to a fact means to meet the burden of establishing the fact (Section 1–201(8)).

  • (b) Other definitions applying to this Article and the sections in which they appear are:

    • “Acceptance” Section 4A-209 “Beneficiary” Section 4A-103 “Beneficiary's bank” Section 4A-103 “Executed” Section 4A-301 “Execution date” Section 4A-301 “Funds transfer” Section 4A-104 “Funds-transfer system rule” Section 4A-501 “Intermediary bank” Section 4A-104 “Originator” Section 4A-104 “Originator's bank” Section 4A-104 “Payment by beneficiary's bank to beneficiary” Section 4A-405 “Payment by originator to beneficiary” Section 4A-406 “Payment by sender to receiving bank” Section 4A-403 “Payment date” Section 4A-401 “Payment order” Section 4A-103 “Receiving bank” Section 4A-103 “Security procedure” Section 4A-201 “Sender” Section 4A-103
  • (c) The following definitions in Article 4 apply to this Article:

    • “Clearing house” Section 4–104 “Item” Section 4–104 “Suspends payments” Section 4–104
  • (d) In addition Article 1 contains general definitions and principles of construction and interpretation applicable throughout this Article.


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