§ 680-a. Definitions. As used in this article, the following terms\nshall have the following meanings:\n 1. "Account agreement" means an agreement that:\n (a) is in a record between a bank and one or more depositors;\n (b) may have one or more beneficiaries as additional parties; and\n (c) states the intention of the parties to establish a special deposit\ngoverned by this article.\n 2. "Bank" means a person engaged in the business of banking and\nincludes a savings bank, savings and loan association, credit union,\ntrust company, and a bank as defined in section two of this chapter.\nEach branch or separate office of a bank is a separate bank for the\npurpose of this article.\n 3. "Beneficiary" means a person that:\n (a) is identified as a beneficiary in an account agreement; or\
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§ 680-a. Definitions. As used in this article, the following terms\nshall have the following meanings:\n 1. "Account agreement" means an agreement that:\n (a) is in a record between a bank and one or more depositors;\n (b) may have one or more beneficiaries as additional parties; and\n (c) states the intention of the parties to establish a special deposit\ngoverned by this article.\n 2. "Bank" means a person engaged in the business of banking and\nincludes a savings bank, savings and loan association, credit union,\ntrust company, and a bank as defined in section two of this chapter.\nEach branch or separate office of a bank is a separate bank for the\npurpose of this article.\n 3. "Beneficiary" means a person that:\n (a) is identified as a beneficiary in an account agreement; or\n (b) if not identified as a beneficiary in an account agreement, may be\nentitled to payment from a special deposit:\n (i) under the account agreement; or\n (ii) on termination of the special deposit.\n 4. "Contingency" means an event or circumstance stated in an account\nagreement that is not certain to occur but must occur before the bank is\nobligated to pay a beneficiary.\n 5. "Creditor process" means attachment, garnishment, levy, notice of\nlien, sequestration, or similar process issued by or on behalf of a\ncreditor or other claimant.\n 6. "Depositor" means a person that establishes or funds a special\ndeposit.\n 7. "Good faith" means honesty in fact and observance of reasonable\ncommercial standards of fair dealing.\n 8. "Knowledge" means:\n (a) with respect to a beneficiary, actual knowledge of the fact; or\n (b) with respect to a bank holding a special deposit:\n (i) if the bank:\n (1) has established a reasonable routine for communicating material\ninformation to an individual to whom the bank has assigned\nresponsibility for the special deposit; and\n (2) maintains reasonable compliance with the routine, actual knowledge\nof the fact by that individual; or\n (ii) if the bank has not established and maintained reasonable\ncompliance with a routine described in subparagraph (i) of this\nparagraph or otherwise exercised due diligence, implied knowledge of the\nfact that would have come to the attention of an individual to whom the\nbank has assigned responsibility for the special deposit.\n 9. "Obligated to pay a beneficiary" or "obligation to pay a\nbeneficiary" means a beneficiary is entitled under the account agreement\nto receive from the bank a payment when:\n (a) a contingency has occurred; and\n (b) the bank has knowledge the contingency has occurred.\n 10. "Permissible purpose" means a governmental, regulatory,\ncommercial, charitable, or testamentary objective of the parties stated\nin an account agreement. The term includes an objective to:\n (a) hold funds:\n (i) in escrow, including for a purchase and sale, lease, buyback, or\nother transaction;\n (ii) as a security deposit of a tenant;\n (iii) that may be distributed to a person as remuneration, retirement\nor other benefit, or compensation under a judgment, consent decree,\ncourt order, or other decision of a tribunal; or\n (iv) for distribution to a defined class of persons after\nidentification of the class members and their interest in the funds;\n (b) provide assurance with respect to an obligation created by\ncontract, such as earnest money to ensure a transaction closes;\n (c) settle an obligation that arises in the operation of a payment\nsystem, securities settlement system, or other financial market\ninfrastructure;\n (d) provide assurance with respect to an obligation that arises in the\noperation of a payment system, securities settlement system, or other\nfinancial market infrastructure; or\n (e) hold margin, other cash collateral, or funds that support the\norderly functioning of financial market infrastructure or the\nperformance of an obligation with respect to the infrastructure.\n 11. "Person" means an individual, estate, business or nonprofit\nentity, government or governmental subdivision, agency, or\ninstrumentality, or other legal entity. The term includes a protected\nseries, however denominated, of an entity if the protected series is\nestablished under law that limits, or limits if conditions specified\nunder law are satisfied, the ability of a creditor of the entity or of\nany other protected series of the entity to satisfy a claim from assets\nof the protected series.\n 12. "Record" means information:\n (a) inscribed on a tangible medium; or\n (b) stored in an electronic or other medium and retrievable in\nperceivable form.\n 13. "Special deposit" means a deposit that satisfies section six\nhundred eighty-d of this article.\n 14. "State" means a state of the United States, the District of\nColumbia, Puerto Rico, the United States Virgin Islands, or any other\nterritory or possession subject to the jurisdiction of the United\nStates. The term includes an agency or instrumentality of the state.\n