§490:3-103 - Definitions.

§490:3-103 Definitions. (a) In this
article:

(1) "Acceptor" means a drawee that has
accepted a draft.

(2) "Drawee" means a person ordered in a
draft to make payment.

(3) "Drawer" means a person who signs or is
identified in a draft as a person ordering payment.

(4) "Good faith" means honesty in fact and
the observance of reasonable commercial standards of fair dealing.

(5) "Maker" means a person who signs or is
identified in a note as a person undertaking to pay.

(6) "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.

(7) "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 an
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.

(8) "Party" means a party to an instrument.

(9) "Promise" means a written undertaking
to pay money signed 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.

(10) "Prove" with respect to a fact means to
meet the burden of establishing the fact (section 490:1-201).

(11) "Remitter" means a person who purchases
an instrument from its issuer if the instrument is payable to an identified
person other than the purchaser.

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

"Acceptance". Section 490:3-409.

"Accommodated party". Section
490:3-419.

"Accommodation party". Section
490:3-419.

"Alteration". Section 490:3-407.

"Anomalous indorsement". Section
490:3-205.

"Blank indorsement". Section
490:3-205.

"Cashier's check". Section
490:3-104.

"Certificate of deposit". Section
490:3-104.

"Certified check". Section
490:3-409.

"Check". Section 490:3-104.

"Consideration". Section 490:3-303.

"Demand draft". Section 490:3-104.

"Draft". Section 490:3-104.

"Holder in due course". Section
490:3-302.

"Incomplete instrument". Section
490:3-115.

"Indorsement". Section 490:3-204.

"Indorser". Section 490:3-204.

"Instrument". Section 490:3-104.

"Issue". Section 490:3-105.

"Issuer". Section 490:3-105.

"Negotiable instrument". Section
490:3-104.

"Negotiation". Section 490:3-201.

"Note". Section 490:3-104.

"Payable at a definite time".
Section 490:3-108.

"Payable on demand". Section
490:3-108.

"Payable to bearer". Section
490:3-109.

"Payable to order". Section
490:3-109.

"Payment". Section 490:3-602.

"Person entitled to enforce".
Section 490:3-301.

"Presentment". Section 490:3-501.

"Reacquisition". Section 490:3-207.

"Special indorsement". Section
490:3-205.

"Teller's check". Section 490:3-104.

"Transfer of instrument". Section
490:3-203.

"Traveler's check". Section
490:3-104.

"Value". Section 490:3-303.

"Bank". Section 490:4-105.

"Banking day". Section 490:4-104.

"Clearing-house". Section 490:4-104.

"Collecting bank". Section
490:4-105.

"Depositary bank". Section
490:4-105.

"Documentary draft". Section
490:4-104.

"Intermediary bank". Section 490:4-105.

"Item". Section 490:4-104.

"Payor bank". Section 490:4-105.

"Suspends payments". Section
490:4-104.

(d) In addition, article 1 contains general
definitions and principles of construction and interpretation applicable
throughout this article. [L 1991, c 118, pt of §1; am L 1998, c 241, §1; am L
2004, c 162, §11]