Definitions

4-3-103. 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 ordering payment. (4) Good faith means honesty in fact and the observance of reasonable commercial standards of fair dealing. (5) Maker means a person who signs or is identified in a note as a person undertaking to pay. (6) Order means a written instruction to pay money signed by the person giving the instruction. The instruction may be addressed to any person, including the person giving the instruction, or to one or more persons jointly or in the alternative but not in succession. An authorization to pay is not an order unless the person authorized to pay is also instructed to pay. (7) Ordinary care in the case of a person engaged in business means observance of reasonable commercial standards, prevailing in the area in which the person is located, with respect to the business in which the person is engaged. In the case of a bank that takes an instrument for processing for collection or payment by automated means, reasonable commercial standards do not require the bank to examine the instrument if the failure to examine does not violate the bank's prescribed procedures and the bank's procedures do not vary unreasonably from general banking usage not disapproved by this article or article 4 of this title. (8) Party means a party to an instrument. (9) Promise means a written undertaking to pay money signed by the person undertaking to pay. An acknowledgment of an obligation by the obligor is not a promise unless the obligor also undertakes to pay the obligation. (10) Prove with respect to a fact means to meet the burden of establishing the fact (section 4-1-201 (b)(8)). (11) Remitter means a person who purchases an instrument from its issuer if the instrument is payable to an identified person other than the purchaser. (b) Other definitions applying to this article and the sections in which they appear are: AcceptanceSection 4-3-409 Accommodated partySection 4-3-419 Accommodation partySection 4-3-419 AlterationSection 4-3-407 Anomalous indorsementSection 4-3-205 Blank indorsementSection 4-3-205 Cashier's checkSection 4-3-104 Certificate of depositSection 4-3-104 Certified checkSection 4-3-409 CheckSection 4-3-104 ConsiderationSection 4-3-303 Demand draftSection 4-3-104 DraftSection 4-3-104 Holder in due courseSection 4-3-302 Incomplete instrumentSection 4-3-115 IndorsementSection 4-3-204 IndorserSection 4-3-204 InstrumentSection 4-3-104 IssueSection 4-3-105 IssuerSection 4-3-105 Negotiable instrumentSection 4-3-104 NegotiationSection 4-3-201 NoteSection 4-3-104 Payable at a definite timeSection 4-3-108 Payable on demandSection 4-3-108 Payable to bearerSection 4-3-109 Payable to orderSection 4-3-109 PaymentSection 4-3-602 Person entitled to enforceSection 4-3-301 PresentmentSection 4-3-501 ReacquisitionSection 4-3-207 Special indorsementSection 4-3-205 Teller's checkSection 4-3-104 Transfer of instrumentSection 4-3-203 Traveler's checkSection 4-3-104 ValueSection 4-3-303 (c) The following definitions in other articles apply to this article: BankSection 4-4-105 Banking daySection 4-4-104 Clearing houseSection 4-4-104 Collecting bankSection 4-4-105 Depositary bankSection 4-4-105 Documentary draftSection 4-4-104 Intermediary bankSection 4-4-105 ItemSection 4-4-104 Payor bankSection 4-4-105 Suspends paymentsSection 4-4-104 (d) In addition, article 1 of this title contains general definitions and principles of construction and interpretation applicable throughout this article. Source: L. 94: Entire article R&RE, p. 840, � 1, effective January 1, 1995. L. 2001: (b) amended, p. 865, � 2, effective August 8. L. 2006: (a)(10) amended, p. 496, � 25, effective September 1. Editor's note: This section is similar to former � 4-3-102 as it existed prior to 1994. Cross references: For the legislative declaration contained in the 2001 act amending subsection (b), see section 1 of chapter 244, Session Laws of Colorado 2001.