§ 55-3-103 — Definitions

New Mexico § 55-3-103

• Jurisdiction: New Mexico
• Ch. 55: Uniform Commercial Code
• Art. 3: Negotiable Instruments

Text

(a) In this article: (1) "acceptor" means a drawee who has accepted a draft; (2) "consumer account" means an account established by an individual primarily for personal, family or household purposes; (3) "consumer transaction" means a transaction in which an individual incurs an obligation primarily for personal, family or household purposes; (4) "drawee" means a person ordered in a draft to make payment; (5) "drawer" means a person who signs or is identified in a draft as a person ordering payment; (6) [Reserved]; (7) "maker" means a person who signs or is identified in a note as a person undertaking to pay; (8) "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; (9) "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 Chapter 55, Article 4 NMSA 1978; (10) "party" means a party to an instrument; (11) "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 pursuant to this article; (12) "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; (13) "prove" with respect to a fact means to meet the burden of establishing the fact (Paragraph (8) of Subsection (b) of Section 55-1-201 NMSA 1978); (14) [Reserved]; (15) "remitter" means a person who purchases an instrument from its issuer if the instrument is payable to an identified person other than the purchaser; (16) [Reserved]; and (17) "secondary obligor" with respect to an instrument means: (i) an indorser or an accommodation party; (ii) a drawer having the obligation described in Subsection (d) of Section 55-3-414 NMSA 1978; or (iii) any other party to the instrument that has recourse against another party to the instrument pursuant to Subsection (b) of Section 55-3-116 NMSA 1978. (b) Other definitions applying to this article and the sections in which they appear are: "acceptance" Section 55-3-409 NMSA 1978; "accommodated party" Section 55-3-419 NMSA 1978; "accommodation party" Section 55-3-419 NMSA 1978; "alteration" Section 55-3-407 NMSA 1978; "anomalous indorsement" Section 55-3-205 NMSA 1978; "blank indorsement" Section 55-3-205 NMSA 1978; "cashier's check" Section 55-3-104 NMSA 1978; "certificate of deposit" Section 55-3-104 NMSA 1978; "certified check" Section 55-3-409 NMSA 1978; "check" Section 55-3-104 NMSA 1978; "consideration" Section 55-3-303 NMSA 1978; "draft" Section 55-3-104 NMSA 1978; "holder in due course" Section 55-3-302 NMSA 1978; "incomplete instrument" Section 55-3-115 NMSA 1978; "indorsement" Section 55-3-204 NMSA 1978; "indorser" Section 55-3-204 NMSA 1978; "instrument" Section 55-3-104 NMSA 1978; "issue" Section 55-3-105 NMSA 1978; "issuer" Section 55-3-105 NMSA 1978; "negotiable instrument" Section 55-3-104 NMSA 1978; "negotiation" Section 55-3-201 NMSA 1978; "note" Section 55-3-104 NMSA 1978; "payable at a definite time" Section 55-3-108 NMSA 1978; "payable on demand" Section 55-3-108 NMSA 1978; "payable to bearer" Section 55-3-109 NMSA 1978; "payable to order" Section 55-3-109 NMSA 1978; "payment" Section 55-3-602 NMSA 1978; "person entitled to enforce" Section 55-3-301 NMSA 1978; "presentment" Section 55-3-501 NMSA 1978; "reacquisition" Section 55-3-207 NMSA 1978; "special indorsement" Section 55-3-205 NMSA 1978; "teller's check" Section 55-3-104 NMSA 1978; "transfer of instrument" Section 55-3-203 NMSA 1978; "traveler's check" Section 55-3-104 NMSA 1978; and "value" Section 55-3-303 NMSA 1978. (c) The following definitions in other articles apply to this article: "account" Section 55-4-104 NMSA 1978; "banking day" Section 55-4-104 NMSA 1978; "clearing house" Section 55-4-104 NMSA 1978; "collecting bank" Section 55-4-105 NMSA 1978; "depositary bank" Section 55-4-105 NMSA 1978; "documentary draft" Section 55-4-104 NMSA 1978; "intermediary bank" Section 55-4-105 NMSA 1978; "item" Section 55-4-104 NMSA 1978; "payor bank" Section 55-4-105 NMSA 1978; and "suspends payments" Section 55-4-104 NMSA 1978. (d) In addition, Chapter 55, Article 1 NMSA 1978 contains general definitions and principles of construction and interpretation applicable throughout this article.

Legislative History

1978 Comp., § 55-3-103, enacted by Laws 1992, ch. 114, § 90; 2005, ch. 144,