Ind. Code § 26-1-3.1-103

Current through P.L. 171-2024

Section 26-1-3.1-103 - Definitions

(a) In IC 26-1-3.1:

(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 (1) 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 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 IC 26-1-3.1 or IC 26-1-4.

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

(11) "Principal obligor", with respect to an instrument, means the accommodated party or any other party to the instrument against whom a secondary obligor has recourse under this article.

(12) "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.

(13) "Prove" with respect to a fact means to meet the burden of establishing the fact (IC 26-1-1-201(8)).

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

(15) "Remotely-created consumer item" means an item that is drawn on a consumer account, is not created by the payor bank, and does not bear a handwritten signature purporting to be the signature of the drawer.

(16) "Secondary obligor", with respect to an instrument, means:

(A) an endorser or an accommodation party;

(B) a drawer having the obligation described in IC 26-1-3.1-414(d); or

(C) any other party to the instrument that has recourse against another party to the instrument under IC 26-1-3.1-116(b).

(b) Other definitions applying to IC 26-1-3.1 and the sections in which they appear are:

"Acceptance". IC 26-1-3.1-409.

"Accommodated party". IC 26-1-3.1-419.

"Accommodation party". IC 26-1-3.1-419.

"Alteration". IC 26-1-3.1-407.

"Anomalous endorsement". IC 26-1-3.1-205.

"Blank endorsement". IC 26-1-3.1-205.

"Cashier's check". IC 26-1-3.1-104.

"Certificate of deposit". IC 26-1-3.1-104.

"Certified check". IC 26-1-3.1-409.

"Check". IC 26-1-3.1-104.

"Consideration". IC 26-1-3.1-303.

"Draft". IC 26-1-3.1-104.

"Holder in due course". IC 26-1-3.1-302.

"Incomplete instrument". IC 26-1-3.1-115.

"Endorsement". IC 26-1-3.1-204.

"Endorser". IC 26-1-3.1-204.

"Instrument". IC 26-1-3.1-104.

"Issue". IC 26-1-3.1-105.

"Issuer". IC 26-1-3.1-105.

"Negotiable instrument". IC 26-1-3.1-104.

"Negotiation". IC 26-1-3.1-201.

"Note". IC 26-1-3.1-104.

"Payable at a definite time". IC 26-1-3.1-108.

"Payable on demand". IC 26-1-3.1-108.

"Payable to bearer". IC 26-1-3.1-109.

"Payable to order". IC 26-1-3.1-109.

"Payment". IC 26-1-3.1-602.

"Person entitled to enforce". IC 26-1-3.1-301.

"Presentment". IC 26-1-3.1-501.

"Reacquisition". IC 26-1-3.1-207.

"Special endorsement". IC 26-1-3.1-205.

"Teller's check". IC 26-1-3.1-104.

"Transfer of an instrument". IC 26-1-3.1-203.

"Traveler's check". IC 26-1-3.1-104.

"Value". IC 26-1-3.1-303.

(c) The following definitions in other IC 26-1-4 apply to IC 26-1-3.1:

"Banking day". IC 26-1-4-104.

"Clearing house". IC 26-1-4-104.

"Collecting bank". IC 26-1-4-105.

"Depositary bank". IC 26-1-4-105.

"Documentary draft". IC 26-1-4-104.

"Intermediary bank". IC 26-1-4-105.

"Item". IC 26-1-4-104.

"Payor bank". IC 26-1-4-105.

"Suspends payments". IC 26-1-4-104.

(d) In addition, IC 26-1-1 contains general definitions and principles of construction and interpretation applicable throughout IC 26-1-3.1.

IC 26-1-3.1-103

As added by P.L. 222-1993, SEC.5. Amended by P.L. 135-2009, SEC.2.