AI-assisted research summary: This provision defines terms used in the article, including parties to drafts and notes, good faith, ordinary care, order, promise, and remitter.
(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. (c) The following definitions in other articles apply to this article: "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]