Ark. Code § 4-3-103

Current with legislation from 2024 Fiscal and Special Sessions.

Section 4-3-103 - Definitions

(a) In this chapter:

(1) "Acceptor" means a drawee who has accepted a draft.

(2) "Consumer transaction" means a transaction in which an individual incurs an obligation primarily for personal, family, or household purposes.

(3) "Drawee" means a person ordered in a draft to make payment.

(4) "Drawer" means a person who signs or is identified in a draft as a person ordering payment.

(5) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.

(6) "Maker" means a person who signs or is identified in a note as a person undertaking to pay.

(7) "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.

(8) "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 this chapter or Chapter 4.

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

(10) "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 chapter.

(11) "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.

(12) "Prove" with respect to a fact means to meet the burden of establishing the fact (§ 4-1-201(b)(8)).

(13) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

(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 item" means an item drawn on an account, which is not created by the payor bank and does not bear a handwritten or facsimile signature purporting to be the signature of the drawer.

(16) "Secondary obligor," with respect to an instrument, means (a) an indorser or an accommodation party, (b) a drawer having the obligation described in § 4-3-414(d), or (c) any other party to the instrument that has recourse against another party to the instrument pursuant to § 4-3-116(b).

(b) Other definitions applying to this chapter and the sections in which they appear are:

"Acceptance". Section 4-3-409.

"Accommodated party". Section 4-3-419.

"Accommodation party". Section 4-3-419.

"Account". Section 4-4-104.

"Alteration". Section 4-3-407.

"Anomalous indorsement". Section 4-3-205.

"Blank indorsement". Section 4-3-205.

"Cashier's check". Section 4-3-104.

"Certificate of deposit". Section 4-3-104.

"Certified check". Section 4-3-409.

"Check". Section 4-3-104.

"Consideration". Section 4-3-303.

"Draft". Section 4-3-104.

"Holder in due course". Section 4-3-302.

"Incomplete instrument". Section 4-3-115.

"Indorsement". Section 4-3-204.

"Indorser". Section 4-3-204.

"Instrument". Section 4-3-104.

"Issue". Section 4-3-105.

"Issuer". Section 4-3-105.

"Negotiable instrument". Section 4-3-104.

"Negotiation". Section 4-3-201.

"Note". Section 4-3-104.

"Payable at a definite time". Section 4-3-108.

"Payable on demand". Section 4-3-108.

"Payable to bearer". Section 4-3-109.

"Payable to order". Section 4-3-109.

"Payment". Section 4-3-602.

"Person entitled to enforce". Section 4-3-301.

"Presentment". Section 4-3-501.

"Reacquisition". Section 4-3-207.

"Special indorsement". Section 4-3-205.

"Teller's check". Section 4-3-104.

"Transfer of instrument". Section 4-3-203.

"Traveler's check". Section 4-3-104.

"Value". Section 4-3-303.

(c) The following definitions in other chapters of this subtitle apply to this chapter:

"Bank". Section 4-4-105.

"Banking day". Section 4-4-104.

"Clearinghouse". Section 4-4-104.

"Collecting bank". Section 4-4-105.

"Depositary bank". Section 4-4-105.

"Documentary draft". Section 4-4-104.

"Intermediary bank". Section 4-4-105.

"Item". Section 4-4-104.

"Payor bank". Section 4-4-105.

"Suspends payments". Section 4-4-104.

(d) In addition, Chapter 1 of this subtitle contains general definitions and principles of construction and interpretation applicable throughout this chapter.

Ark. Code § 4-3-103

Acts 1991, No. 572, § 5; 2005, No. 856, § 27.