§5002 Definitions

Summary

Gives simple meanings for words used in this chapter. Account — a deposit account at a bank. Bank — a person located in a State that does banking; this also covers any depository institution (see section 461(b)(1)(A)), any Federal Reserve Bank, any Federal Home Loan Bank, and, when acting as a payor, the U.S. Treasury, the U.S. Postal Service, a State government, or a unit of general local government (see section 4001(24)). Collecting bank — any bank handling a check for collection except the paying bank. Depositary bank — the first bank a check is sent to, or a bank that receives a check for deposit even if another bank handled it first. Paying bank — the bank on which a check is payable or the bank at or through which it is sent for payment or collection. Returning bank — a bank (other than the paying or depositary bank) that handles a returned check or a notice instead of a return; this chapter does not change how returning banks are treated under section 4–202(b) of the Uniform Commercial Code. Board — the Board of Governors of the Federal Reserve System. Business day — has the same meaning as in section 4001(3). Check — a draft payable on demand and drawn on or payable through a bank, including substitute checks and travelers checks; it does not include a noncash item or anything payable in a currency other than United States dollars. Consumer — an individual who either writes a check on a consumer account for forward collection or deposits/cashes a check into or against a consumer account for return. Consumer account — has the same meaning as in section 4001(10). Customer — a person with an account at a bank. Forward collection — a bank sending a check to a collecting bank for settlement or to the paying bank for payment. Indemnifying bank — a bank giving an indemnity under section 5005 for a substitute check. MICR line / magnetic ink character recognition line — the numbers printed in magnetic ink near the bottom of a check (may show routing number, account number, check number, amount, and other info). Noncash item — has the same meaning as in section 4001(14). Person — an individual, corporation, company, partnership, government unit or agency, trust, or other organization. Reconverting bank — the bank that makes a substitute check, or if a non-bank makes it, the first bank that transfers or presents the substitute check. Substitute check — a paper copy of the original check that shows front and back images, has a MICR line with the original information (except allowed changes under industry standards), meets industry standards for paper and size, and can be processed by machines like the original. State — has the same meaning as in section 1813(a). Truncate — to remove the original paper check from the collection or return process and send a substitute check or related information instead, with or without later sending the original paper check. Uniform Commercial Code — the Uniform Commercial Code as it is in effect in a State. Terms not defined here use the same meanings as in the Uniform Commercial Code unless the context requires otherwise.