12 U.S. Code § 5002 - Definitions
For purposes of this chapter, the following definitions shall apply:
The term “bank” means any person that is located in a State and engaged in the business of banking and includes—
(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
(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
(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.
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
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
(8) Consumer account
(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 “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—
(16) Substitute check
The term “substitute check” means a paper reproduction of the original check that—
(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
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.
Source(Pub. L. 108–100, § 3,Oct. 28, 2003, 117 Stat. 1178.)
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