§ 25-3-103. Definitions. - North Carolina Statutes

Article 3.

Negotiable Instruments.

PART 1.

GENERAL PROVISIONS ANDDEFINITIONS.

§ 25‑3‑103. Definitions.

(a)        In this Article:

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

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

(3)        "Drawer"means a person who signs or is identified in a draft as a person orderingpayment.

(4)        Repealed by SessionLaws 2006‑112, s. 12, effective October 1, 2006.

(5)        "Maker"means a person who signs or is identified in a note as a person undertaking topay.

(6)        "Order"means a written instruction to pay money signed by the person giving theinstruction. The instruction may be addressed to any person, including theperson giving the instruction, or to one or more persons jointly or in thealternative but not in succession. An authorization to pay is not an orderunless the person authorized to pay is also instructed to pay.

(7)        "Ordinarycare" in the case of a person engaged in business means observance ofreasonable commercial standards, prevailing in the area in which the person islocated, with respect to the business in which the person is engaged. In thecase of a bank that takes an instrument for processing for collection orpayment by automated means, reasonable commercial standards do not require thebank to examine the instrument if the failure to examine does not violate thebank's prescribed procedures and the bank's procedures do not vary unreasonablyfrom general banking usage not disapproved by this Article or Article 4.

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

(9)        "Promise"means a written undertaking to pay money signed by the person undertaking topay. An acknowledgment of an obligation by the obligor is not a promise unlessthe obligor also undertakes to pay the obligation.

(10)      "Prove"with respect to a fact means to meet the burden of establishing the fact (G.S.25‑1‑201(b)(8)).

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

(b)        Other definitionsapplying to this Article and the sections in which they appear are:

"Acceptance"                                             G.S.25‑3‑409.

"Accommodatedparty"                              G.S. 25‑3‑419.

"Accommodationparty"                             G.S. 25‑3‑419.

"Alteration"                                                G.S.25‑3‑407.

"Anomalousindorsement"                          G.S. 25‑3‑205.

"Blankindorsement"                                   G.S. 25‑3‑205.

"Cashier'scheck"                                       G.S. 25‑3‑104.

"Certificateof deposit"                               G.S. 25‑3‑104.

"Certifiedcheck"                                        G.S. 25‑3‑409.

"Check"                                                     G.S.25‑3‑104.

"Consideration"                                          G.S.25‑3‑303.

"Draft"                                                       G.S.25‑3‑104.

"Holderin due course"                               G.S. 25‑3‑302.

"Incompleteinstrument"                              G.S. 25‑3‑115.

"Indorsement"                                            G.S.25‑3‑204.

"Indorser"                                                  G.S.25‑3‑204.

"Instrument"                                               G.S.25‑3‑104.

"Issue"                                                       G.S.25‑3‑105.

"Issuer"                                                      G.S.25‑3‑105.

"Negotiableinstrument"                              G.S. 25‑3‑104.

"Negotiation"                                             G.S.25‑3‑201.

"Note"                                                       G.S.25‑3‑104.

"Payableat a definite time"                         G.S. 25‑3‑108.

"Payableon demand"                                 G.S. 25‑3‑108.

"Payableto bearer"                                    G.S. 25‑3‑109.

"Payableto order"                                     G.S. 25‑3‑109.

"Payment"                                                  G.S.25‑3‑602.

"Personentitled to enforce"                        G.S. 25‑3‑301.

"Presentment"                                            G.S.25‑3‑501.

"Reacquisition"                                           G.S.25‑3‑207.

"Specialindorsement"                                G.S. 25‑3‑205.

"Teller'scheck"                                          G.S. 25‑3‑104.

"Transferof instrument"                              G.S. 25‑3‑203.

"Traveler'scheck"                                      G.S. 25‑3‑104.

"Value"                                                      G.S.25‑3‑303.

(c)        The followingdefinitions in other Articles apply to this Article:

"Bank"                                                       G.S.25‑4‑105.

"Bankingday"                                            G.S. 25‑4‑104.

"Clearinghouse"                                        G.S. 25‑4‑104.

"Collectingbank"                                       G.S. 25‑4‑105.

"Depositarybank"                                      G.S. 25‑4‑105.

"Documentarydraft"                                  G.S. 25‑4‑104.

"Intermediarybank"                                   G.S. 25‑4‑105.

"Item"                                                        G.S.25‑4‑104.

"Payorbank"                                             G.S. 25‑4‑105.

"Suspendspayments"                                 G.S. 25‑4‑104.

(d)        In addition,Article 1 contains general definitions and principles of construction andinterpretation applicable throughout this Article. (1899, c. 733, ss. 17, 68;Rev., ss. 1952, 2217, 2341; C.S., ss. 2998, 3049; 1965, c. 700, s. 1; 1995, c.232, s. 1; 2006‑112, ss. 12, 13.)