2016 California Code
Commercial Code - COM
DIVISION 4 - BANK DEPOSITS AND COLLECTIONS
CHAPTER 1 - General Provisions and Definitions
Section 4104.

4104. (a) In this division unless the context otherwise requires:

(1) Account means any deposit or credit account with a bank, including a demand, time, savings, passbook, share draft, or like account, other than an account evidenced by a certificate of deposit.

(2) Afternoon means the period of a day between noon and midnight.

(3) Banking day means the part of a day on which a bank is open to the public for carrying on substantially all of its banking functions.

(4) Clearinghouse means an association of banks or other payors regularly clearing items.

(5) Customer means a person having an account with a bank or for whom a bank has agreed to collect items, including a bank that maintains an account at another bank.

(6) Documentary draft means a draft to be presented for acceptance or payment if specified documents, certificated securities (Section 8102) or instructions for uncertificated securities (Section 8102), or other certificates, statements, or the like are to be received by the drawee or other payor before acceptance or payment of the draft.

(7) Draft means a draft as defined in Section 3104 or an item, other than an instrument, that is an order.

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

(9) Item means an instrument or a promise or order to pay money handled by a bank for collection or payment. The term does not include a payment order governed by Division 11 (commencing with Section 11101) or a credit or debit card slip.

(10) Midnight deadline with respect to a bank is midnight on its next banking day following the banking day on which it receives the relevant item or notice or from which the time for taking action commences to run, whichever is later.

(11) Settle means to pay in cash, by clearinghouse settlement, in a charge or credit or by remittance, or otherwise as agreed. A settlement may be either provisional or final.

(12) Suspends payments with respect to a bank means that it has been closed by order of the supervisory authorities, that a public officer has been appointed to take it over or that it ceases or refuses to make payments in the ordinary course of business.

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

Agreement for electronic presentment	Section 4110
Bank	Section 4105
Collecting bank	Section 4105
Depositary bank	Section 4105
Intermediary bank	Section 4105
Payor bank	Section 4105
Presenting bank	Section 4105
Presentment notice	Section 4110

(c) The following definitions in other divisions apply to this division:

Acceptance	Section 3409
Alteration	Section 3407
Cashier s check	Section 3104
Certificate of deposit	Section 3104
Certified check	Section 3409
Check	Section 3104
Control	Section 7106
Holder in due course	Section 3302
Instrument	Section 3104
Notice of dishonor	Section 3503
Order	Section 3103
Ordinary care	Section 3103
Person entitled to enforce	Section 3301
Presentment	Section 3501
Promise	Section 3103
Prove	Section 3103
Teller s check	Section 3104
Unauthorized signature	Section 3403

(d) In addition, Division 1 (commencing with Section 1101) contains general definitions and principles of construction and interpretation applicable throughout this division.

(Amended by Stats. 2006, Ch. 254, Sec. 45. Effective January 1, 2007.)