12 USC 5002 - Definitions

U.S Code last checked for updates: Apr 29, 2024

§ 5002.

Definitions

For purposes of this chapter, the following definitions shall apply:

(1)

Account

(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

(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

(ii)

Treatment as collecting bank

(4)

Board

(5)

Business day

(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

(9)

Customer

(10)

Forward collection

(11)

Indemnifying bank

(12)

MICR line

(13)

Noncash item

(14)

Person

(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

(18)

Truncate

(19)

Uniform Commercial Code

(20)

Other terms

(Pub. L. 108–100, § 3, Oct. 28, 2003, 117 Stat. 1178.)

cite as: 12 USC 5002