(a) In this article, 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) “Clearing house” 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 7-8-102) or instructions for uncertificated securities (Section 7-8-308), 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 7-3-104 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 Article 4A 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 clearing-house 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 article and the sections in which they appear are:
“Agreement for electronic presentment.” Section 7-4-110.
“Bank.” Section 7-4-105.
“Collecting bank.” Section 7-4-105.
“Depositary bank.” Section 7-4-105.
“Intermediary bank.” Section 7-4-105.
“Payor bank.” Section 7-4-105.
“Presenting bank.” Section 7-4-105.
“Presentment notice.” Section 7-4-110.
(c) “Control” as provided in Section 7-7-106 and the following definitions in other articles apply to this article:
“Acceptance.” Section 7-3-409.
“Alteration.” Section 7-3-407.
“Cashier’s check.” Section 7-3-104.
“Certificate of deposit.” Section 7-3-104.
“Certified check.” Section 7-3-409.
“Check.” Section 7-3-104.
“Good faith.” Section 7-3-103.
“Holder in due course.” Section 7-3-302.
“Instrument.” Section 7-3-104.
“Notice of dishonor.” Section 7-3-503.
“Order.” Section 7-3-103.
“Ordinary care.” Section 7-3-103.
“Person entitled to enforce.” Section 7-3-301.
“Presentment.” Section 7-3-501.
“Promise.” Section 7-3-103.
“Prove.” Section 7-3-103.
“Teller’s check.” Section 7-3-104.
“Unauthorized signature.” Section 7-3-403.
(d) In addition, Article 1 contains general definitions and principles of construction and interpretation applicable throughout this article.
(Acts 1965, No. 549, p. 811; Acts 1989, No. 89-431, p. 911, §1; repealed by Acts 1995, No. 95-668, p. 1381, §2; added by Acts 1995, No. 95-668, p. 1381, §2; Act 2004-315, p. 464, §2.)
Notes of Decisions
Southland Health Servs., Inc. v. Bank of Vernon, 887 F. Supp. 2d 1158 (N.D. Ala. 2012).
· cites it 2× “” Ala.Code § 7-4-104(a)(9). . Despite arguing here that Citizens' defense was inadequately pleaded, Plaintiffs condemn Citizens' efforts to dismiss claims on the same as a resort to “hyper-technical pleading standards and formalities.”
Cent. Bank of Alabama, Na v. Peoples Nat. Bank Huntsville, 401 So. 2d 14 (Ala. 1981).
· cites it 2× “Midnight deadline is defined in Code 1975, § 7-4-104: (h) `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,…”
Amsouth Bank, N.A. v. Spigener, 505 So. 2d 1030 (Ala. 1986).
“Subsection (1) of § 7-4-401 provides: "As against its customer, a bank may charge against his account any item which is otherwise properly payable from that account even though the charge creates an overdraft.”
Graves v. Wachovia Bank, Nat'l Ass'n, 607 F. Supp. 2d 1277 (M.D. Ala. 2009).
· cites it 2× “1975 Ala.Code § 7-4-104(a)(5) defines “customer” as any "person having an account with a bank or for whom the bank has agreed to collect items.”
First Fed. Sav. & Loan Ass'n of Hamilton v. Alabama Nat'l Bank of Montgomery, 372 So. 2d 350 (Ala. Civ. App. 1979).
“However, were it necessary to affirming the judgment in this case, we would consider whether FFS&L, by accepting the endorsement of the check, crediting its amount as a deposit in an account and forwarding it through commercial banking channels for collection, was acting in the…”
Brooks v. First Fed. Sav. & Loan Ass'n, 726 So. 2d 640 (Ala. 1998).
· cites it 2× “" § 7-4-104(9), Ala.Code 1975. "Article 4A governs a specialized method of payment referred to in the Article as a funds transfer but also commonly referred to in the commercial community as a wholesale wire transfer.”
— Ala. Code § 7-4-104(1)(i) — 1 case
Amsouth Bank, N.A. v. Spigener, 505 So. 2d 1030 (Ala. 1986).
“Subsection (1) of § 7-4-401 provides: "As against its customer, a bank may charge against his account any item which is otherwise properly payable from that account even though the charge creates an overdraft.”
— Ala. Code § 7-4-104(9) — 2 cases
Brooks v. First Fed. Sav. & Loan Ass'n, 726 So. 2d 640 (Ala. 1998).
“" § 7-4-104(9), Ala.Code 1975. "Article 4A governs a specialized method of payment referred to in the Article as a funds transfer but also commonly referred to in the commercial community as a wholesale wire transfer.”
— Ala. Code § 7-4-104(a)(5) — 1 case
Graves v. Wachovia Bank, Nat'l Ass'n, 607 F. Supp. 2d 1277 (M.D. Ala. 2009).
“1975 Ala.Code § 7-4-104(a)(5) defines “customer” as any "person having an account with a bank or for whom the bank has agreed to collect items.”
— Ala. Code § 7-4-104(a)(9) — 1 case
Southland Health Servs., Inc. v. Bank of Vernon, 887 F. Supp. 2d 1158 (N.D. Ala. 2012).
“” Ala.Code § 7-4-104(a)(9). . Despite arguing here that Citizens' defense was inadequately pleaded, Plaintiffs condemn Citizens' efforts to dismiss claims on the same as a resort to “hyper-technical pleading standards and formalities.”
— Ala. Code § 7-4-104(l)(e) — 1 case
First Fed. Sav. & Loan Ass'n of Hamilton v. Alabama Nat'l Bank of Montgomery, 372 So. 2d 350 (Ala. Civ. App. 1979).
“However, were it necessary to affirming the judgment in this case, we would consider whether FFS&L, by accepting the endorsement of the check, crediting its amount as a deposit in an account and forwarding it through commercial banking channels for collection, was acting in the…”
— Ala. Code § 7-4-104(l)(g) — 1 case
— Ala. Code § 7-4-104(l)(h) — 1 case
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