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The 190th General Court of the Commonwealth of Massachusetts

Section 4A-105: Other Definitions

Section 4A-105. (a) In this Article, unless the context otherwise requires, the following words and phrases shall have the following meanings:

(1) ''Authorized account'', a deposit account of a customer in a bank designated by such customer as a source of payment of payment orders issued by such customer to the bank. If a customer does not so designate an account, any account of such customer is an authorized account if payment of a payment order from that account is not inconsistent with a restriction on the use of such account.

(2) ''Bank'', a person engaged in the business of banking and shall include a savings bank, savings and loan association, credit union, or trust company. A branch or separate office of a bank is a separate bank for purposes of this Article.

(3) ''Customer'', 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'', the part of a day during which a receiving bank is open for the receipt, processing, and transmittal of payment orders and cancellations and amendments of payment orders.

(5) ''Funds transfer system'', a wire transfer network, automated clearing house, or other communication system of a clearing house or other association of banks through which a payment order of a bank may be transmitted to the bank to which the order is addressed.

(6) ''Good faith'', honesty in fact and the observance of reasonable commercial standards of fair dealing.

[Paragraph (7) of subsection (a) applicable as provided by 2013, 30, Sec. 116.]

(7) ''Prove'', with respect to a fact means to meet the ''burden of establishing'' a fact as provided in paragraph (8) of subsection (b) of section 1-201.

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

(c) The following definitions in Article 4 shall apply to this Article:

(d) In addition, Article 1 contains general definitions and principles of construction and interpretation applicable throughout this Article.