12 U.S. Code § 5002 - Definitions
The term “collecting bank” means any bank handling a check for collection except the paying bank.
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 “business day” has the same meaning as in section 4001(3) of this title.
The term “consumer account” has the same meaning as in section 4001(10) of this title.
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.
The term “indemnifying bank” means a bank that is providing an indemnity under section 5005 of this title with respect to a substitute check.
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.
The term “noncash item” has the same meaning as in section 4001(14) of this title.
The term “person” means a natural person, corporation, unincorporated company, partnership, government unit or instrumentality, trust, or any other entity or organization.
The term “State” has the same meaning as in section 1813(a) of this title.
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.
The term “Uniform Commercial Code” means the Uniform Commercial Code in effect in a State.
Unless the context requires otherwise, the terms not defined in this section shall have the same meanings as in the Uniform Commercial Code.
This chapter, referred to in text, was in the original “this Act”, meaning Pub. L. 108–100, Oct. 28, 2003, 117 Stat. 1177, which is classified generally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 5001 of this title and Tables.
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