Black’s Law Dictionary Definitions:
defalcation
“defalcation (dee-fal-kay-shan), n. 1. EMBEZZLE-MENT. 2. Loosely, the failure to meet an obligation; a nonfraudulent default. 3. Ar-chaic. A deduction; a setoff. – defalcate (di-fal-kayt or dee-), vb. – defalcator,”
DEpeculation
“depeculation (dee-pek-ya-lay-shan). Hist. Embezzlement from the public treasury. Cf. PECULATION. — depeculate, vb.”
Embezzlement
“embezzlement, n. The fraudulent taking of personal property with which one has been entrusted, esp. as a fiduciary. • The criminal intent for embezzlement — unlike larceny and false pretenses – arises after taking possession (not before or during the taking). — Also termed defalcation; peculation. See LARCENY; FALSE PRETENSES. — embez-zle, ub. — embezzler, n.”
FALSE PRETENSES
“false pretenses. The crime of knowingly obtaining title to another’s personal property by misrepresenting a fact with the intent to defraud. • Although unknown to English common law, false pretenses became a misdemeanor under a statute old enough to make it common law in the United States.
Modern American statutes make it either a felony or a misdemeanor, depending on the property’s value. — Also termed obtaining property by false pretenses; fraudulent pretenses. Cf. larceny by trick under LARCENY; EMBEZZLEMENT.”
LARCENY
“larceny (lahr-sa-nee), n. The unlawful taking and carrying away of someone else’s personal property with the intent to deprive the possessor of it permanently. • Com-mon-law larceny has been broadened by some statutes to include embezzlement and false pretenses, all three of which are often subsumed under the statutory crime of
“theft.” Cf. ROBBERY; THEFT.”
Account Maintaining Reserve Bank
Advance
“n. 1. The furnishing of money or goods before any consideration is received in return. 2. The money or goods furnished.” (Black’s Law Dictionary page 45)
Bank Note
“A bank-issued promissory note that is payable to bearer on demand and that may circulate as money. — Also written bank note. — Also termed bank bill.” (Black’s Law Dictionary page 119)
Beneficiary
A person to be paid by the beneficiary’s bank
Borrower
Credit (see Letter of Credit)
Currency
“An item (such as a coin, government note, or banknote) that circulates as a medium of exchange. See LEGAL TENDER.” (Black’s Law Dictionary page 328)
CUSIP number
Depository Bank
“The first bank to which an item is transferred for collection. UCC § 4-105(2).” (Black’s Law Dictionary page 117)
Endorsement (see INDORSEMENT)
Fund
“n. 1. A sum of money or other liquid assets established for a specific purpose <a fund reserved for unanticipated expenses>.” (Black’s Law Dictionary page 558)
Fund (Black’s Law Dictionary page 558-559)
Funding
“n. 1. The process of financing capital expenditures by issuing long-term debt obligations or by converting short-term obligations into long-term obligations to finance current expenses; the process of creating a funded debt. 2. The refinancing of a debt before its maturity. – Also termed refunding. 3. The provision or allocation of money for a specific purpose, such as for a pension plan, by putting the money into a reserve fund or investments. 4. The provision of financial resources to finance a particular activity or project, such as a research study. 5. The transfer of property to a trust.” (Black’s Law Dictionary page 560)
Funds Transfer
A payment of money from one person or entity to another; esp., the process by which payment is made through a series of transactions between computerized banking systems, beginning with an originator’s payment order and ending when a final payment order is received by the beneficiary’s bank. • Commercial or wholesale funds transfers are governed by Article 4A of the UCC. Consumer funds transfers are regulated by the federal Electronic Funds Transfer Act (15 USCA §§ 1693 et seq.). – Also termed (specif.) electronic funds transfer (EFT). (Black’s Law Dictionary page 560)
Government Note
Indorsement
“n. 1. The placing of a sig-nature, sometimes with an additional no-tation, on the back of a negotiable instrument to transfer or guarantee the instrument or to acknowledge payment.
2. The signature or notation itself. – Also spelled endorsement. — indorse, vb.” (Black’s Law Dictionary page 642)
Legal Tender
“The money (bills and coins) approved in a country for the payment of debts, the purchase of goods, and other exchanges for value. See TENDER (5).” (Black’s Law Dictionary Page 750)
Letter of Credit
<the bank issued a credit in favor of the exporter>. 6. A deduction from an amount due; an accounting entry reflecting an addition to revenue or net worth <confirm that the credit was properly applied to my ac-counts. Cf. DEBIT. 7. TAN CREDIT <the $500 credit reduced their income-tax liability by $500>.” (Black’s Law Dictionary page 315-316)
Liquid Assets
Medium Of Exchange
“Anything generally accepted as payment in a transaction and recognized as a standard of value < money is a medium of exchange >. Cf. LEGAL TEN-DER.” (Black’s Law Dictionary page 822)
Money
“1. The medium of exchange authorized or adopted by a government as part of its currency; esp. domestic currency <coins and currency are money>. UCC
§ 1-201 (b)(24). 2. Assets that can be easily converted to cash < demand deposits are money>. 3. Capital that is invested or traded as a commodity <the money market > 4. (pl.) Funds; sums of money <in-vestment moneys>. – Also spelled (in sense 4) monies. See MEDIUM OF EXCHANGE; LEGAL TENDER.”
Negotiable Instrument
“A written instrument that (1) is signed by the maker or drawer,
(2) includes an unconditional promise or order to pay a specified sum of money, (3) is payable on demand or at a definite time, and (4) is payable to order or to bearer.
UCC & 3-104(a). – Also termed negotiable paper; negotiable note. • Among the various types of negotiable instruments are bills of exchange, promissory notes, bank checks, certificates of deposit, and other negotiable securities.” (Black’s Law Dictionary page 873-874)
Payment
“1. Performance of an obligation by the delivery of money or some other valuable thing accepted in partial or full dis charge of the obligation. 2. The money of other valuable thing so delivered in satisfaction of an obligation.” (Black’s Law Dictionary page 950)
Payment Order
an instruction from a sender to a receiving bank to pay a specific amount of money to a beneficiary. The key characteristics of a payment order include:
- Fixed Amount: The order specifies a fixed or determinable amount of money.
- No Conditions: It does not state any conditions for payment to the beneficiary, other than the timing of the payment.
- Reimbursement: The receiving bank is to be reimbursed by debiting the sender’s account or receiving payment from the sender.
- Direct Transmission: The instruction must be transmitted directly from the sender to the receiving bank or through an agent.
Related Terms
Issuance of Payment Order
A payment order is considered issued when it is sent to the receiving bank. If the order involves multiple payments to a beneficiary, each payment is treated as a separate payment order.
Promissory Note
“An unconditional written promise, signed by the maker, to pay absolutely and in any event a certain sum of money either to, or to the order of, the bearer or a designated person. – Also termed note of hand.” (Black’s Law Dictionary page 895)
Property
Sender
The person giving the instruction to the receiving bank
Security Intrest
Surety
Tender
“n. 1. A valid and sufficient offer of performance; specif., an unconditional offer of money or performance to satisfy a debt or obligation <a tender of delivery >.
• The tender may save the tendering party from a penalty for nonpayment or nonperformance or may, if the other party unjustifiably refuses the tender, place the other party in default.” (Black’s Law Dictionary page 1230)
