(a) In this division: (1) âAcceptorâ means a drawee who has accepted a draft. (2) âDraweeâ means a person ordered in a draft to make payment. (3) âDrawerâ means a person who signs or is identified in a draft as a person ordering payment. (4) [Reserved] (5) âMakerâ means a person who signs or is identified in a note as a person undertaking to pay. (6) âOrderâ 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) âOrdinary careâ 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 bankâs prescribed procedures and the bankâs procedures do not vary unreasonably from general banking usage not disapproved by this division or Division 4 (commencing with Section 4101). (8) âPartyâ means a party to an instrument. (9) âPromiseâ 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) âProveâ with respect to a fact means to meet the burden of establishing the fact (paragraph (8) of subdivision (b) of Section 1201). (11) âRemitterâ 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 division and the sections in which they appear are: âAcceptanceâ Section 3409 âAccommodated partyâ Section 3419 âAccommodation partyâ Section 3419 âAlterationâ Section 3407 âAnomalous endorsementâ Section 3205 âBlank endorsementâ Section 3205 âCashierâs checkâ Section 3104 âCertificate of depositâ Section 3104 âCertified checkâ Section 3409 âCheckâ Section 3104 âConsiderationâ Section 3303 âDemand Draftâ Section 3104 âDraftâ Section 3104 âHolder in due courseâ Section 3302 âIncomplete instrumentâ Section 3115 âIndorsementâ Section 3204 âIndorserâ Section 3204 âInstrumentâ Section 3104 âIssueâ Section 3105 âIssuerâ Section 3105 âNegotiable instrumentâ Section 3104 âNegotiationâ Section 3201 âNoteâ Section 3104 âPayable at a definite timeâ Section 3108 âPayable on demandâ Section 3108 âPayable to bearerâ Section 3109 âPayable to orderâ Section 3109 âPaymentâ Section 3602 âPerson entitled to enforceâ Section 3301 âPresentmentâ Section 3501 âReacquisitionâ Section 3207 âSpecial indorsementâ Section 3205 âTellerâs checkâ Section 3104 âTransfer of instrumentâ Section 3203 âTravelerâs checkâ Section 3104 âValueâ Section 3303 (c) The following definitions in other divisions apply to this division: âBankâ Section 4105 âBanking dayâ Section 4104 âClearinghouseâ Section 4104 âCollecting bankâ Section 4105 âDepositary bankâ Section 4105 âDocumentary draftâ Section 4104 âIntermediary bankâ Section 4105 âItemâ Section 4104 âPayor bankâ Section 4105 âSuspends paymentsâ Section 4104 (d) In addition, Division 1 (commencing with Section 1101) contains general definitions and principles of construction and interpretation applicable throughout this division.
‹ Prev All California sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.