Florida Statutes
Fla. Stat. § 673.1031 (2025)
Definitions.
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673.1031 Definitions.—
(1) In this chapter, the term:
(a) “Acceptor” means a drawee who has accepted a draft.
(b) “Drawee” means a person ordered in a draft to make payment.
(c) “Drawer” means a person who signs or is identified in a draft as a person ordering payment.
(d) “Good faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(e) “Maker” means a person who signs or is identified in a note as a person undertaking to pay.
(f) “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.
(g) “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 674.
(h) “Party” means a party to an instrument.
(i) “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.
(j) “Prove,” with respect to a fact, means to meet the burden of establishing the fact (s. 671.201(8)).
(k) “Remitter” means a person who purchases an instrument from its issuer if the instrument is payable to an identified person other than the purchaser.
(2) Other definitions applying to this chapter and the sections in which they appear are:
“Acceptance,” s. 673.4091.
“Accommodated party,” s. 673.4191.
“Accommodation party,” s. 673.4191.
“Alteration,” s. 673.4071.
“Anomalous indorsement,” s. 673.2051.
“Blank indorsement,” s. 673.2051.
“Cashier’s check,” s. 673.1041.
“Certificate of deposit,” s. 673.1041.
“Certified check,” s. 673.4091.
“Check,” s. 673.1041.
“Consideration,” s. 673.3031.
“Draft,” s. 673.1041.
“Holder in due course,” s. 673.3021.
“Incomplete instrument,” s. 673.1151.
“Indorsement,” s. 673.2041.
“Indorser,” s. 673.2041.
“Instrument,” s. 673.1041.
“Issue,” s. 673.1051.
“Issuer,” s. 673.1051.
“Negotiable instrument,” s. 673.1041.
“Negotiation,” s. 673.2011.
“Note,” s. 673.1041.
“Payable at a definite time,” s. 673.1081.
“Payable on demand,” s. 673.1081.
“Payable to bearer,” s. 673.1091.
“Payable to order,” s. 673.1091.
“Payment,” s. 673.6021.
“Person entitled to enforce,” s. 673.3011.
“Presentment,” s. 673.5011.
“Reacquisition,” s. 673.2071.
“Special indorsement,” s. 673.2051.
“Teller’s check,” s. 673.1041.
“Transfer of instrument,” s. 673.2031.
“Traveler’s check,” s. 673.1041.
“Value,” s. 673.3031.
(3) The following definitions in other chapters apply to this chapter:
“Bank,” s. 674.105.
“Banking day,” s. 674.104.
“Clearinghouse,” s. 674.104.
“Collecting bank,” s. 674.105.
“Depositary bank,” s. 674.105.
“Documentary draft,” s. 674.104.
“Intermediary bank,” s. 674.105.
“Item,” s. 674.104.
“Payor bank,” s. 674.105.
“Suspends payments,” s. 674.104.
(4) In addition, chapter 671 contains general definitions and principles of construction and interpretation applicable throughout this chapter.
Notes of Decisions
Cited in 8
cases (3 in the last 5 years), 2002–2025 · leading case: Any Kind Checks Cashed, Inc. v. Talcott, 830 So. 2d 160 (Fla. 4th DCA 2002).
Any Kind Checks Cashed, Inc. v. Talcott, 830 So. 2d 160 (Fla. 4th DCA 2002). “Comment 4 to section 673.1031, Florida Statutes Annotated, attempts to shed light on how to interpret the new standard: Although fair dealing is a broad term that must be defined in context, it is clear that it is concerned with the fairness of conduct rather than the care with…”
SCADIF, S.A. v. First Union Nat'l Bank, 208 F. Supp. 2d 1352 (S.D. Fla. 2002). “"Ordinary care” is defined for purposes of Chapter 674 in section 673.1031, Florida Statutes: (g) "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…”
Daiwa Prods., Inc. v. NATIONSBANK, NA, 885 So. 2d 884 (Fla. 4th DCA 2004). “Section 673.1031(1)(d), Florida Statutes (1997) defines "good faith" as meaning "honesty in fact and the observance of reasonable commercial standards of fair dealing.”
Walton v. Clark & Washington, P.C., 454 B.R. 537 (Bankr. M.D. Fla. 2011). “§§ 673.1031(1)(c), .4141(2), Fla. Stat. 29 .”
Artistic Tile, Inc. v. Jpmorgan Chase Bank, N.A. (D.N.J. 2025). “” Fla. Stat. § 673.1031 (1)(d). When assessing good faith, “[t]he ‘honesty in fact’ component is subjective” whereas “the fair- dealing component is objective.”
Banco Bilbao Vizcaya Argentaria v. Easy Luck Co. Inc., 208 So. 3d 1241 (Fla. 3d DCA 2017). “§ 673.1031. In this case, Easy Luck did take precautionary measures upon delivery of the draft by Molina to Easy Luck’s office in Miami.”
Asgaard Fund, L.p., Etc. v. Mm80 Oceanside Holdings, LLC, Etc. (Fla. 3d DCA 2021). “” § 673.1031(e), Fla. Stat. (2021). 6 Because an unissued instrument is not automatically unenforceable and MM80 did not raise nondelivery as an affirmative defense, we reverse the final judgment against Asgaard.”
Regions Bank v. Marvin I. Kaplan (11th Cir. 2021). “” Fla. Stat. § 673.1031 cmt. 4. Again, the summary judgment evidence is undisputed that Regions acted in good faith.”
— 673.1031(1)(c) — 2 cases
Any Kind Checks Cashed, Inc. v. Talcott, 830 So. 2d 160 (Fla. 4th DCA 2002). “Comment 4 to section 673.1031, Florida Statutes Annotated, attempts to shed light on how to interpret the new standard: Although fair dealing is a broad term that must be defined in context, it is clear that it is concerned with the fairness of conduct rather than the care with…”
Walton v. Clark & Washington, P.C., 454 B.R. 537 (Bankr. M.D. Fla. 2011). “§§ 673.1031(1)(c), .4141(2), Fla. Stat. 29 .”
— 673.1031(1)(d) — 2 cases
Daiwa Prods., Inc. v. NATIONSBANK, NA, 885 So. 2d 884 (Fla. 4th DCA 2004). “Section 673.1031(1)(d), Florida Statutes (1997) defines "good faith" as meaning "honesty in fact and the observance of reasonable commercial standards of fair dealing.”
Any Kind Checks Cashed, Inc. v. Talcott, 830 So. 2d 160 (Fla. 4th DCA 2002). “Comment 4 to section 673.1031, Florida Statutes Annotated, attempts to shed light on how to interpret the new standard: Although fair dealing is a broad term that must be defined in context, it is clear that it is concerned with the fairness of conduct rather than the care with…”
— 673.1031(e) — 1 case
Asgaard Fund, L.p., Etc. v. Mm80 Oceanside Holdings, LLC, Etc. (Fla. 3d DCA 2021). “” § 673.1031(e), Fla. Stat. (2021). 6 Because an unissued instrument is not automatically unenforceable and MM80 did not raise nondelivery as an affirmative defense, we reverse the final judgment against Asgaard.”
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