12 U.S.C. § 5002 : US Code - Section 5002: Definitions

Search 12 U.S.C. § 5002 : US Code - Section 5002: Definitions

For purposes of this chapter, the following definitions shall
apply:
(1) Account
The term "account" means a deposit account at a bank.
(2) Bank
The term "bank" means any person that is located in a State and
engaged in the business of banking and includes -
(A) any depository institution (as defined in section
461(b)(1)(A) of this title);
(B) any Federal reserve bank;
(C) any Federal home loan bank; or
(D) to the extent it acts as a payor -
(i) the Treasury of the United States;
(ii) the United States Postal Service;
(iii) a State government; or
(iv) a unit of general local government (as defined in
section 4001(24) of this title).
(3) Banking terms
(A) Collecting bank
The term "collecting bank" means any bank handling a check
for collection except the paying bank.
(B) Depositary bank
The term "depositary bank" means -
(i) the first bank to which a check is transferred, even if
such bank is also the paying bank or the payee; or
(ii) a bank to which a check is transferred for deposit in
an account at such bank, even if the check is physically
received and indorsed first by another bank.
(C) Paying bank
The term "paying bank" means -
(i) the bank by which a check is payable, unless the check
is payable at or through another bank and is sent to the
other bank for payment or collection; or
(ii) the bank at or through which a check is payable and to
which the check is sent for payment or collection.
(D) Returning bank
(i) In general
The term "returning bank" means a bank (other than the
paying or depositary bank) handling a returned check or
notice in lieu of return.
(ii) Treatment as collecting bank
No provision of this chapter shall be construed as
affecting the treatment of a returning bank as a collecting
bank for purposes of section 4-202(b) of the Uniform
Commercial Code.
(4) Board
The term "Board" means the Board of Governors of the Federal
Reserve System.
(5) Business day
The term "business day" has the same meaning as in section
4001(3) of this title.
(6) Check
The term "check" -
(A) means a draft, payable on demand and drawn on or payable
through or at an office of a bank, whether or not negotiable,
that is handled for forward collection or return, including a
substitute check and a travelers check; and
(B) does not include a noncash item or an item payable in a
medium other than United States dollars.
(7) Consumer
The term "consumer" means an individual who -
(A) with respect to a check handled for forward collection,
draws the check on a consumer account; or
(B) with respect to a check handled for return, deposits the
check into, or cashes the check against, a consumer account.
(8) Consumer account
The term "consumer account" has the same meaning as in section
4001(10) of this title.
(9) Customer
The term "customer" means a person having an account with a
bank.
(10) Forward collection
The term "forward collection" means the transfer by a bank of a
check to a collecting bank for settlement or the paying bank for
payment.
(11) Indemnifying bank
The term "indemnifying bank" means a bank that is providing an
indemnity under section 5005 of this title with respect to a
substitute check.
(12) MICR line
The terms "MICR line" and "magnetic ink character recognition
line" mean the numbers, which may include the bank routing
number, account number, check number, check amount, and other
information, that are printed near the bottom of a check in
magnetic ink in accordance with generally applicable industry
standards.
(13) Noncash item
The term "noncash item" has the same meaning as in section
4001(14) of this title.
(14) Person
The term "person" means a natural person, corporation,
unincorporated company, partnership, government unit or
instrumentality, trust, or any other entity or organization.
(15) Reconverting bank
The term "reconverting bank" means -
(A) the bank that creates a substitute check; or
(B) if a substitute check is created by a person other than a
bank, the first bank that transfers or presents such substitute
check.
(16) Substitute check
The term "substitute check" means a paper reproduction of the
original check that -
(A) contains an image of the front and back of the original
check;
(B) bears a MICR line containing all the information
appearing on the MICR line of the original check, except as
provided under generally applicable industry standards for
substitute checks to facilitate the processing of substitute
checks;
(C) conforms, in paper stock, dimension, and otherwise, with
generally applicable industry standards for substitute checks;
and
(D) is suitable for automated processing in the same manner
as the original check.
(17) State
The term "State" has the same meaning as in section 1813(a) of
this title.
(18) Truncate
The term "truncate" means to remove an original paper check
from the check collection or return process and send to a
recipient, in lieu of such original paper check, a substitute
check or, by agreement, information relating to the original
check (including data taken from the MICR line of the original
check or an electronic image of the original check), whether with
or without subsequent delivery of the original paper check.
(19) Uniform Commercial Code
The term "Uniform Commercial Code" means the Uniform Commercial
Code in effect in a State.
(20) Other terms
Unless the context requires otherwise, the terms not defined in
this section shall have the same meanings as in the Uniform
Commercial Code.