2009 California Commercial Code - Section 11101-11108 :: Chapter 1. Subject Matter And Definitions

11101.  This division may be cited as Uniform Commercial Code--Funds
Transfers.

11102.  Except as otherwise provided in Section 11108, this division
applies to funds transfers defined in Section 11104.

11103.  (a) In this division:
   (1) "Payment order" means an instruction of a sender to a
receiving bank, transmitted orally, electronically, or in writing, to
pay, or to cause another bank to pay, a fixed or determinable amount
of money to a beneficiary if all of the following apply:
   (i) The instruction does not state a condition to payment to the
beneficiary other than time of payment.
   (ii) The receiving bank is to be reimbursed by debiting an account
of, or otherwise receiving payment from, the sender.
   (iii) The instruction is transmitted by the sender directly to the
receiving bank or to an agent, funds-transfer system, or
communication system for transmittal to the receiving bank.
   (2) "Beneficiary" means the person to be paid by the beneficiary's
bank.
   (3) "Beneficiary's bank" means the bank identified in a payment
order in which an account of the beneficiary is to be credited
pursuant to the order or which otherwise is to make payment to the
beneficiary if the order does not provide for payment to an account.
   (4) "Receiving bank" means the bank to which the sender's
instruction is addressed.
   (5) "Sender" means the person giving the instruction to the
receiving bank.
   (b) If an instruction complying with paragraph (1) of subdivision
(a) is to make more than one payment to a beneficiary, the
instruction is a separate payment order with respect to each payment.
   (c) A payment order is issued when it is sent to the receiving
bank.

11104.  In this division:
   (a) "Funds transfer" means the series of transactions, beginning
with the originator's payment order, made for the purpose of making
payment to the beneficiary of the order. The term includes any
payment order issued by the originator's bank or an intermediary bank
intended to carry out the originator's payment order. A funds
transfer is completed by acceptance by the beneficiary's bank of a
payment order for the benefit of the beneficiary of the originator's
payment order.
   (b) "Intermediary bank" means a receiving bank other than the
originator's bank or the beneficiary's bank.
   (c) "Originator" means the sender of the first payment order in a
funds transfer.
   (d) "Originator's bank" means (i) the receiving bank to which the
payment order of the originator is issued if the originator is not a
bank, or (ii) the originator if the originator is a bank.

11105.  (a) In this division:
   (1) "Authorized account" means a deposit account of a customer in
a bank designated by the customer as a source of payment of payment
orders issued by the customer to the bank. If a customer does not so
designate an account, any account of the customer is an authorized
account if payment of a payment order from that account is not
inconsistent with a restriction on the use of that account.
   (2) "Bank" means a person engaged in the business of banking and
includes a savings bank, savings and loan association, credit union,
and trust company. A branch or separate office of a bank is a
separate bank for purposes of this division.
   (3) "Customer" means a person, including a bank, having an account
with a bank or from whom a bank has agreed to receive payment
orders.
   (4) "Funds-transfer business day" of a receiving bank means the
part of a day during which the receiving bank is open for the
receipt, processing, and transmittal of payment orders and
cancellations and amendments of payment orders.
   (5) "Funds-transfer system" means a wire transfer network,
automated clearinghouse, or other communication system of a
clearinghouse or other association of banks through which a payment
order by a bank may be transmitted to the bank to which the order is
addressed.
   (6)  [Reserved]
   (7) "Prove" with respect to a fact means to meet the burden of
establishing the fact under subdivision (8) of Section 1201.
   (b) Other definitions applying to this division and the sections
in which they appear are:
   Acceptance: Section 11209.
   Beneficiary: Section 11103.
   Beneficiary's bank: Section 11103.
   Executed: Section 11301.
   Execution date: Section 11301.
   Funds transfer: Section 11104.
   Funds-transfer system rule: Section 11501.
   Intermediary bank: Section 11104.
   Originator: Section 11104.
   Originator's bank: Section 11104.
   Payment by beneficiary's bank to beneficiary: Section 11405.
   Payment by originator to beneficiary: Section 11406.
   Payment by sender to receiving bank: Section 11403.
   Payment date: Section 11401.
   Payment order: Section 11103.
   Receiving bank: Section 11103.
   Security procedure: Section 11201.
   Sender: Section 11103.
   (c) The following definitions in Division 4 (commencing with
Section 4101) apply to this division:
   Clearinghouse: Section 4104.
   Item: Section 4104.
   Suspends payments: Section 4104.
   (d) In addition, Division 1 (commencing with Section 1101)
contains general definitions and principles of construction and
interpretation applicable throughout this division.

11106.  (a) The time of receipt of a payment order or communication
canceling or amending a payment order is determined by the rules
applicable to receipt of a notice stated in Section 1202. A receiving
bank may fix a cutoff time or times on a funds-transfer business day
for the receipt and processing of payment orders and communications
canceling or amending payment orders. Different cutoff times may
apply to payment orders, cancellations, or amendments, or to
different categories of payment orders, cancellations, or amendments.
A cutoff time may apply to senders generally or different cutoff
times may apply to different senders or categories of payment orders.
If a payment order or communication canceling or amending a payment
order is received after the close of a funds-transfer business day or
after the appropriate cutoff time on a funds-transfer business day,
the receiving bank may treat the payment order or communication as
received at the opening of the next funds-transfer business day.
   (b) If this division refers to an execution date or payment date
or states a day on which a receiving bank is required to take action,
and the date or day does not fall on a funds-transfer business day,
the next day that is a funds-transfer business day is treated as the
date or day stated, unless the contrary is stated in this division.

11107.  Regulations of the Board of Governors of the Federal Reserve
System and operating circulars of the Federal Reserve Banks
supersede any inconsistent provision of this division to the extent
of the inconsistency.

11108.  This division does not apply to a funds transfer any part of
which is governed by the Electronic Fund Transfer Act of 1978 (Title
XX, Public Law 95-630, 92 Stat. 3728, 15 U.S.C. Sec. 1693 et seq.)
as amended from time to time.