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4-3-103. Definitions.
Arkansas Code — all titles (historical 2020) · legal_authorities
4-3-103. Definitions.
(a) In this chapter:
(1) “Acceptor” means a drawee who has accepted a draft.
(2) “Consumer transaction” means a transaction in which an individual incurs an obligation primarily for personal, family, or household purposes.
(3) “Drawee” means a person ordered in a draft to make payment.
(4) “Drawer” means a person who signs or is identified in a draft as a person ordering payment.
(5) “Good faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(6) “Maker” means a person who signs or is identified in a note as a person undertaking to pay.
(7) “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 (1) 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.
(8) “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 chapter or Chapter 4.
(9) “Party” means a party to an instrument.
(10) “Principal obligor,” with respect to an instrument, means the accommodated party or any other party to the instrument
Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-3-103
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:4-3-103
Source file: gov.ar.code.title.04.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 617e66091a4a8dc5a0fae71e31bc10d35e7db63bb936ac557531af925509cfc7
Source location: content.xml paragraph 3922
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4-3-103. Definitions.
(a) In this chapter:
(1) “Acceptor” means a drawee who has accepted a draft.
(2) “Consumer transaction” means a transaction in which an individual incurs an obligation primarily for personal, family, or household purposes.
(3) “Drawee” means a person ordered in a draft to make payment.
(4) “Drawer” means a person who signs or is identified in a draft as a person ordering payment.
(5) “Good faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(6) “Maker” means a person who signs or is identified in a note as a person undertaking to pay.
(7) “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 (1) 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.
(8) “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 chapter or Chapter 4.
(9) “Party” means a party to an instrument.
(10) “Principal obligor,” with respect to an instrument, means the accommodated party or any other party to the instrument against whom a secondary obligor has recourse under this chapter.
(11) “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.
(12) “Prove” with respect to a fact means to meet the burden of establishing the fact (§ 4-1-201(b)(8)).
(13) “Record” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
(14) “Remitter” means a person who purchases an instrument from its issuer if the instrument is payable to an identified person other than the purchaser.
(15) “Remotely-created item” means an item drawn on an account, which is not created by the payor bank and does not bear a handwritten or facsimile signature purporting to be the signature of the drawer.
(16) “Secondary obligor,” with respect to an instrument, means (a) an indorser or an accommodation party, (b) a drawer having the obligation described in § 4-3-414(d), or (c) any other party to the instrument that has recourse against another party to the instrument pursuant to § 4-3-116(b).
(b) Other definitions applying to this chapter and the sections in which they appear are:
“Acceptance”. Section 4-3-409.
“Accommodated party”. Section 4-3-419.
“Accommodation party”. Section 4-3-419.
“Account”. Section 4-4-104.
“Alteration”. Section 4-3-407.
“Anomalous indorsement”. Section 4-3-205.
“Blank indorsement”. Section 4-3-205.
“Cashier's check”. Section 4-3-104.
“Certificate of deposit”. Section 4-3-104.
“Certified check”. Section 4-3-409.
“Check”. Section 4-3-104.
“Consideration”. Section 4-3-303.
“Draft”. Section 4-3-104.
“Holder in due course”. Section 4-3-302.
“Incomplete instrument”. Section 4-3-115.
“Indorsement”. Section 4-3-204.
“Indorser”. Section 4-3-204.
“Instrument”. Section 4-3-104.
“Issue”. Section 4-3-105.
“Issuer”. Section 4-3-105.
“Negotiable instrument”. Section 4-3-104.
“Negotiation”. Section 4-3-201.
“Note”. Section 4-3-104.
“Payable at a definite time”. Section 4-3-108.
“Payable on demand”. Section 4-3-108.
“Payable to bearer”. Section 4-3-109.
“Payable to order”. Section 4-3-109.
“Payment”. Section 4-3-602.
“Person entitled to enforce”. Section 4-3-301.
“Presentment”. Section 4-3-501.
“Reacquisition”. Section 4-3-207.
“Special indorsement”. Section 4-3-205.
“Teller's check”. Section 4-3-104.
“Transfer of instrument”. Section 4-3-203.
“Traveler's check”. Section 4-3-104.
“Value”. Section 4-3-303.
(c) The following definitions in other chapters of this subtitle apply to this chapter:
“Bank”. Section 4-4-105.
“Banking day”. Section 4-4-104.
“Clearinghouse”. Section 4-4-104.
“Collecting bank”. Section 4-4-105.
“Depositary bank”. Section 4-4-105.
“Documentary draft”. Section 4-4-104.
“Intermediary bank”. Section 4-4-105.
“Item”. Section 4-4-104.
“Payor bank”. Section 4-4-105.
“Suspends payments”. Section 4-4-104.
(d) In addition, Chapter 1 of this subtitle contains general definitions and principles of construction and interpretation applicable throughout this chapter.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Arkansas Code — all titles (historical 2020) · legal_authorities
4-1-201. General definitions.
(a) Unless the context otherwise requires, words or phrases defined in this section, or in the additional definitions contained in other chapters of this subtitle that apply to particular chapters or parts thereof, have the meanings stated.
(b) Subject to definitions contained in other chapters of this subtitle that apply to particular chapters or parts thereof:
(1) “Action”, in the sense of a judicial proceeding, includes recoupment, counterclaim, set-off, suit in equity, and any other proceedings in which rights are determined.
(2) “Aggrieved party” means a party entitled to pursue a remedy.
(3) “Agreement”, as distinguished from “contract”, means the bargain of the parties in fact, as found in their language or inferred from other circumstances, including course of performance, course of dealing, or usage of trade as provided in § 4-1-303.
(4) “Bank” means a person engaged in the business of banking and includes a savings bank, savings and loan association, credit union, and trust company.
(5) “Bearer” means a person in control of a negotiable electronic document of title or a person in possession of a negotiable instrument, negotiable tangible document of title, or certificated security that is payable to bearer or indorsed in blank.
(6) “Bill of lading” means a document of title evidencing the receipt of goods for shipment issued by a person engaged in the business of directly or indirectly transporting or forwarding goods. The term does not include a warehouse receipt.
(7) “Branch” includes a separately incorporated foreign branch of a bank.
(8) “Burden of establishing” a fact means the burden of persuading the trier of fact that the existence of the fact is more probable than its nonexistence.
(9) “Buyer in ordi
Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-1-201
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 4-1-201. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
4-3-116. Joint and several liability — Contribution.
(a) Except as otherwise provided in the instrument, two (2) or more persons who have the same liability on an instrument as makers, drawers, acceptors, indorsers who indorse as joint payees, or anomalous indorsers are jointly and severally liable in the capacity in which they sign.
(b) Except as provided in § 4-3-419(e) or by agreement of the affected parties, a party having joint and several liability who pays the instrument is entitled to receive from any party having the same joint and several liability contribution in accordance with applicable law.
(c) [Repealed.]
Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-3-116
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 4-3-116. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
4-3-409. Acceptance of draft — Certified check.
(a) “Acceptance” means the drawee's signed agreement to pay a draft as presented. It must be written on the draft and may consist of the drawee's signature alone. Acceptance may be made at any time and becomes effective when notification pursuant to instructions is given or the accepted draft is delivered for the purpose of giving rights on the acceptance to any person.
(b) A draft may be accepted although it has not been signed by the drawer, is otherwise incomplete, is overdue, or has been dishonored.
(c) If a draft is payable at a fixed period after sight and the acceptor fails to date the acceptance, the holder may complete the acceptance by supplying a date in good faith.
(d) “Certified check” means a check accepted by the bank on which it is drawn. Acceptance may be made as stated in subsection (a) or by a writing on the check which indicates that the check is certified. The drawee of a check has no obligation to certify the check, and refusal to certify is not dishonor of the check.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-3-409
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 4-3-409. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
4-3-414. Obligation of drawer.
(a) This section does not apply to cashier's checks or other drafts drawn on the drawer.
(b) If an unaccepted draft is dishonored, the drawer is obliged to pay the draft (i) according to its terms at the time it was issued or, if not issued, at the time it first came into possession of a holder, or (ii) if the drawer signed an incomplete instrument, according to its terms when completed, to the extent stated in §§ 4-3-115 and 4-3-407. The obligation is owed to a person entitled to enforce the draft or to an indorser who paid the draft under § 4-3-415.
(c) If a draft is accepted by a bank, the drawer is discharged, regardless of when or by whom acceptance was obtained.
(d) If a draft is accepted and the acceptor is not a bank, the obligation of the drawer to pay the draft if the draft is dishonored by the acceptor is the same as the obligation of an indorser under § 4-3-415(a) and (c).
(e) If a draft states that it is drawn “without recourse” or otherwise disclaims liability of the drawer to pay the draft, the drawer is not liable under subsection (b) to pay the draft if the draft is not a check. A disclaimer of the liability stated in subsection (b) is not effective if the draft is a check.
(f) If (i) a check is not presented for payment or given to a depositary bank for collection within thirty (30) days after its date, (ii) the drawee suspends payments after expiration of the thirty-day period without paying the check, and (iii) because of the suspension of payments, the drawer is deprived of funds maintained with the drawee to cover payment of the check, the drawer to the extent deprived of funds may discharge its obligation to pay the check by assigning to the person entitled to enforce the check the rights of the drawer ag
Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-3-414
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 4-3-414. This identifies an authority to review, not proof of applicability.